Series of Large Orders Won in Railroad Projects for Iran

Nov. 4. 2004
Marubeni Corporation

Marubeni has formed a consortium with South Korea's largest rolling stock manufacturer, Rotem Company (Hyundai Motor Group), to win an order worth about 110 million euro (about 15 billion yen) for 120 Diesel Multiple Unit (DMU) cars from Irankhdro Rail Industries Company (IRICO), and signed the contract on November 1. The project will be funded using export credit from the Export-Import Bank of Korea. The production is scheduled to start in 2006, and delivery will be made from the beginning of 2007 through to 2008.

Under this contract, the design and production of the rolling stock and the transfer of technology to IRICO will be carried out by Rotem Company, while, as consortium partner, Marubeni will take charge of the commercial task & functions , including accounting & legal support, local procurement back-up and finance & payment facilitation.

Marubeni has 40 years experience in Iran, particularly with the Islamic Republic of Iran Railway , in areas such as the supply of signal systems and the delivery of diesel locomotives, and is held in high esteem by the Iranian counterparts. Rotem Company supplies rolling stock tailored to various customers' needs including DMUs and EMUs in Southeast Asia, Turkey, Syria and other countries, and the high performance level of its rolling stock is highly rated by the customers. It is the multiplier effect of the two companies that led to this order.

The DMUs to be delivered under this contract are intended?for the use by the Tehran Suburban Railway by Raja Passenger Company (Passenger Trains Company that is a wholly owned subsidiary of the Islamic Republic of Iran Railway ) and comprise 24 complete cars, 24 cars for on-site assembly and 72 cars for on-site production. The transfer of technology to IRICO is also included in the scope of work.

IRICO is a company set up by Iran's largest car maker, Irankhodro, to enter into railcar production business, which is currently burgeoning in Iran against a backdrop of fast population increase in urban areas, and this contract marks IRICO's first project.

In March this year we also formed a consortium with Czech company, Skoda Dopravni Technika s.r.o., and we won an order from Rail Transportation Industries Development Company (affiliated with Industrial Development and Renovation Organization of Iran) for the delivery of 100low-floor trams (total contract amount about 120 million euro (about 16.4 billion yen); 20 complete cars and 80 cars for on-site assembly), and, with this latest order from IRICO, we have won a succession of large orders in the Iranian market.

As the future demand for rail vehicles for suburban rapid passenger transportation and urban rail transit looks firm and steady in Iran, Marubeni plans to expand its business for urban and suburban passenger rail vehicles by lining-up various type of rail vehicles on offer and co-operating Iranian customers and partners in the field of technology transfer and local production.

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