French car manufacturer, Renault has done a joint venture with the government of Iran along with a private company, Parto Negin Naseh to refurbish a factory at Saveh, which is 74 miles from Tehran.
The production line will start with their Duster and Symbol vehicles, and by 2022 production will step-up to deliver 300,000 vehicles each year.
Renault has been producing vehicles in Iran since 2004 and produces around 200,000 vehicles per annum already, the firm will own 60 per cent of the joint venture.
Sanctions have now been lifted which has helped make the deal happen, the EU imposed sanctions due to Iran continuing to develop weapons grade uranium that could be used for nuclear weapons.
Thierry Bollore of Renault, said: “We are happy to sign one of Renault’s most historical contracts here.”
Ballore added: “This signing confirms our strong intent and commitment for long-term operations as a strategic partner of Iran’s automotive industry.”