Renault forms new joint venture company in Iran

French carmaker Renault (RENA.PA) signed a new joint venture deal in Iran following an initial partnership agreement struck last year, which Renault said would boost its growth in the country.

Renault will be the majority shareholder of the new joint venture company, formed with Iranian partners IDRO (Industrial Development & Renovation Organization of Iran) and Parto Negin Naseh, an importer of Renault products in Iran.

The new joint venture company will include an engineering and purchasing center to support the development of local suppliers as well as a plant with an initial production capacity of 150,000 vehicles a year, supplementing Renault's existing capacity of 200,000 vehicles a year in the country.

The first vehicles to be produced at the plant will be the new Symbol and new Duster cars, added Renault.

'We are happy to sign this agreement with IDRO and Parto Negin Naseh Company. In a rapidly expanding Iranian market, it was vital to implement plants, engineering and purchasing center," the Member of Groupe Renault Executive Committee and Chief Competitive Officer, Thierry Bollore, said.

"This joint venture will enable an acceleration of our growth in this country," Reuters cited him as saying.