Minsk’s castling

Belarus sold 40 percent of shares of “Yunison” Closed Joint Stock Company to Iranian company Iran Khordo. A corresponding agreement was signed yesterday in Minsk. The Belarusian government expects to launch production of passenger cars instead of the existing assembly workshops.

Iran Khodro chief executive Manoucher Manteghi arrived to Minsk to discuss the project and sign necessary papers. He has met with Prime Minister Siargey Sidorski lately. “Another production line for Iranian passenger cars will be launched in Belarus… it’s important for Belarus to enter the foreign market with passenger cars,” the Belarusian government press-service told “Nezavisimaya Gazeta.”

The meeting over, Belarus’ Minister of Industry told journalists the share of Belarusian parts in the joint car is to reach 50 percent which would make Belarus a manufacturer.

Iranian cars Samand are already assembled at the Belarusian factories of “Yunison” Closed Joint Stock Company. Now welding and painting are planned to be carried out in Belarus. In future production of spare parts for the Belarusian-Iranian cars can be established. Moreover, the line of the cars produced is also planned to be extended. “We study the Belarusian market and plan to launch production of several models of passenger cars of different classes here,” Manoucher Manteghi said. According to him, the annual production is to reach 60 thousand cars. Initially the Iranian company is to invest $ 6 mln; in future the amount will be increased.

After 40 percent of the shares are sold, the authorized capital in the “Yunison” Closed Joint Stock Company is presented in the following way: the state (Ministry of Industry) owns 26 percent, English company “Fenox” owns 23 percent, “Yunison” owns 11.3 percent, the rest 39.7 percent belong to Iran Khordo.

The local public is worried with the ambitious plans of their governors and doesn’t share its optimism. There are many complaints on the quality of Samands, 300 of which have already been assembled. Automobile specialists say these cars require reparation right after they leave factory. Buyers who have already estimated the quality of the so-called foreign cars are puzzled; they don’t understand why it is necessary to reinvent the wheel when it can easily be bought, and the efforts can be spent on other productions.

Nevertheless, the Belarusian government has its own idea of making the Belarusian consumer love Samand and other Iranian cars. The public has recently been informed of the plans to increase the import duties for cars. Experts believe, in this matter the Belarusian government is not willing to provide the nation with high quality cars at low prices. The intention to create new employment opportunities and load production capacity of the rather unsuccessful “Yunison” (Ford tried to launch production there) is an essential, but not the determinant factor. According to government experts, big amounts of imported foreign cars have a negative impact on the foreign trade balance, which now has reached $ 1.5 bln.