France's Peugeot carmaker signed a deal with Iran's Khodro to modernize its plant and once again begin producing Peugeot vehicles in the previously sanctioned country.
In addition to the $436 million Peugeot investment, Iran is also planning to buy 127 Airbus planes, according to Reuters, to replace its aging fleet. The deals were made during Iranian President Hassan Rouhani's trip to Paris.
"The signing of this strategic agreement closes the chapter of the period of international sanctions and allows especially PSA and Iran Khodro to write a new page in their history," Carlos Tavares, Chairman of the PSA Peugeot Citroën said, according to the Peugeot press release.
"This strategic partnership with SAP will create a platform for both parties to capitalize on the competitive advantages of both companies, especially in terms of size, technology and long-term goals," Dr. Hashem Yekehzare, President and CEO of Iran Khodro said.
The two companies plan to launch full-scale production by 2017 after modernization of the Iranian plant.
