Valeo: Joint Venture in Iran
24 February 2000
Valeo: Joint Venture in Iran
PARIS--February 23, 2000--Valeo has signed a Letter of Intent (LOI) with Iran Khodro, represented by its automotive parts subsidiary Sapco, and Iran Radiator, two Tehran-based companies. The LOI provides for the formation of a joint venture in Iran in the field of automotive climate control, with initial shareholdings of 34% for Valeo, 34% for Iran Radiator and 32% for Sapco. Valeo would have an option to raise its participation to 51%.Iran Khodro is Iran's largest automotive manufacturer, which produces the market leader Paykan, as well as the Peugeot 405. It also has plans to produce the Peugeot 206. Iran Radiator is the market leader in Iran in the field of automotive radiators.
Commenting on the LOI, Noel Goutard, Chairman and CEO of Valeo, stated: "The final agreement will give Valeo its first industrial facility in Iran in a favorable economic environment. This market has great potential for growth. The new company will initially satisfy the requirements of PSA Peugeot Citroen followed by other customers in Iran."
Valeo Climate Control expects the joint venture to achieve sales of 60 million euros in three years, with a workforce of 300 people. VCC generates 1.2 billion euros in sales and employs 6,800 people in 11 countries.
Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks, and ranks among the world's top automotive suppliers. The Group has 116 plants, 36 R&D centers, 10 distribution centers and employs 51,700 people in 20 countries worldwide.
For more information on the Group and its businesses, please consult our Web site: www.valeo.com