Iran Khodro Industrial Group (IKCO) has signed a memorandum of understanding (MoU) with Unison, a Belarusian automotive company. According to an IKCO statement, Unison will assemble Iran Khodro-branded cars in Belarus. The agreement was signed on the sidelines of the Iran-Belarus Joint Economic Commission in Tehran.
Significance: The latest move will be an important step for IKCO as it aims to expand its footprint in both domestic and international markets. The relationship between IKCO and Unison dates back to February 2006, when they signed a nine-year deal. As part of the deal, Unison was expected to manufacture about 30,000 units per annum (upa) of Iran Khodro's Samand at the Belarusian Minsk Automobile (MAZ) plant. Unfortunately, Unison produced only 1,000 cars between 2006 and 2011, leading Belarusian first deputy prime minister Uladzimir Syamashka to express his extreme dissatisfaction with the company's performance in February 2011. IKCO also stated its interest in raising its 49% stake in Unison to 51% but the car assembly project faced undisclosed legal problems. By reviving their association, IKCO hopes to use Belarus as a regional hub for exporting its vehicles to the Commonwealth of Independent States (CIS) markets. IKCO has also signed agreements early this year to set up assembly plants in Algeria and Oman.
