EghtesadOnline: The second edition of Germany’s specialized exhibition for machine tools and metalworking sector known as “AMB Iran” will be held in Tehran on May 23-26.
Already booked by over 180 exhibitors, the event organized by Messe Stuttgart, a major German exhibition and trade fair center, and the German Machine Tool Builders’ Association, VDW, recently invited keynote speakers to three industry get-togethers in the industrial hubs of Isfahan, Tehran and Tabriz.
Six-hundred high-ranking representatives from political, economic and industrial associations discussed the current situation following the lifting of sanctions against Iran and new opportunities unfolding in the country’s industrial sector.
Relevant topics include technology transfer from abroad, the potential for foreign investments and the importance of company and on-the-job training, European Tool & Mould Making magazine reported on its website.
Huge Opportunities for Mechanical Engineers
According to Financial Tribune, mechanical engineering in Iran is currently experiencing a strong upturn. The numerous planned large projects, expansion investments and the renewal of outdated industrial plants offer mechanical engineers huge opportunities.
In Iran, imports are expected to grow $20 billion from 2015 to 2017. It is estimated that machines and accessories will account for 20% of this growth.
Iran possesses a well-developed automotive parts industry but there is still a high import requirement. There are around 15,000 production sites in Iran, but 60% of the parts required for the automotive industry are still imported.
The production capacities of Iranian automotive manufacturers are roughly 2 million vehicles per year. Modernization is also needed in the oil industry.
In addition, automotive manufacture, chemicals industry and the expansion of renewable energies are some of the areas in which machines are also required.
Importance of Technology Transfer
President of Isfahan Chamber of Commerce, Industries, Mines and Agriculture Mohammad Reza Barkatain said the transfer of knowledge and intensive exchange with international companies is of immense importance. Iran’s participation on the global market and cooperation with international companies, particularly with those from Europe, will be decisive for successful growth in the coming years.
“International perception can only be increased when the corresponding installations and facilities are available locally,” he added.
Mohammad Reza Modoudi, the deputy head of Iran’s Trade Promotion Organization and advisor to the Ministry of Industries, Mining and Trade, has reported a noticeable upturn in the Iranian economy.
For TPO, the latest technology transfer is the starting point from which better production results are possible. The organization is hoping for higher investments, which would also mean the creation of more jobs.
With the lifting of sanctions, demand for industrial modernization is now very high.
Samad Hassanzadeh, president of Tabriz Chamber of Commerce, Industries, Mines and Agriculture, estimates that 70% of the machines in Iran’s factories are German products, making the majority of German exhibitors at AMB Iran very welcome.
Younes Akbarpour Paydar, president of the Association of Automotive Parts and Machine Manufacturers in Tabriz, also referred to the long history of joint ventures between German and Iranian companies.
According to him, Iran is an attractive location for metal working for two reasons: the capacities are high and production costs are reasonable compared to other countries in the Middle East.
Mohammad Zeinalipour, a business development representative in the Isfahan chamber of commerce, talked about the rising interest of European companies in the Iranian market.
He noted that technology transfer can solve all industrial problems in Iran, while strong support for training and technical training courses are also important for the future.
Akbar Ashourion, the head of the Association for Mechanical and Plant Engineering, Trucks and Suppliers in Isfahan, emphasized that training is a top priority and that a joint venture between the two countries’ associations and promotion of university exchange between Iran and Germany are desirable.
Iran is said to be the leading importer of electrical and automation technology in the Middle East. At the industry get-together in Tehran, Jurgen Engert, vice president of Siemens S.S.K., the Iranian subsidiary of Siemens AG, delivered a keynote speech focusing on automation.
Siemens S.S.K. will showcase products in the automation pavilion at AMB Iran.
Building on 1st Edition’s Success
Some 111 exhibitors took part in the first edition of AMB Iran at the Boostan Goftegoo Exhibition Center in Tehran from May 30 to June 1, 2016.
Exhibitors were primarily interested in renewing and forging contacts with trading partners and representatives who made up the total of 2,127 visitors.
“The success of the first AMB Iran proves that it was a good strategy to enter the developing market of Iran with the successful brand,” Ulrich Kromer, CEO of Messe Stuttgart, has been quoted as saying.
“The good international networking of VDW, our experience in staging symposiums and the excellent cooperation with Messe Stuttgart were the main factors which contributed to the success of the first event,” added Wilfried Schafer, managing director of VDW.
The most widely represented areas were automotive (33%), components suppliers (13%) and molding (9%).
Of the 111 exhibitors, 68 came from Germany, 18 from Italy, nine from Switzerland and three from Austria. They included world market leaders, key industry players and medium-sized enterprises.