China’s Puzhen to finance manufacturing subway wagons in Iran
Chinese rolling stock company, CRRC Nanjing Puzhen, signed a deal with Iran’s Industrial Development and Renovation Organization (IDRO) on Wednesday for financing the joint manufacturing of subway wagons in Iran.
Based on the contract, the Chinese side is going to collaborate with an Iranian company called Wagon Pars Arak in Markazi Province to build 450 wagons, IRNA reported.
According to IDRO’s Managing Director Mansour Moazami, the subway wagons are going to be used in Shiraz, Tabriz and Ahvaz cities’ subways and the Chinese side has agreed to fund up to 85 percent of the contract’s total value.
“Based on the preliminary talks, €25 million is needed for equipping and operating Wagon Pars Company and Puzhen has agreed to make the investment”, he said.
Earlier in February, IDRO also inked a deal worth about €1.1 billion with Swiss company Stadler Rail Group on financing the joint manufacturing of subway wagons in Iran.
Based on that contract, the Swiss company is going to collaborate with the Iranian organization for manufacturing of 960 wagons of which 728 will be used in the capital Tehran’s subway.