Under the contract, the two companies will establish an assembly line and maintenance workshop, said Peter Mayr, managing director of Terramar Company, which represents MAN.
“What we have signed today ... is to run a local assembly of MAN trucks here in Iraq ... together with our joint partner Numoor Al-Bararry,” Mayr said.
Iraq is trying to revive its manufacturing industry and needs investment in all sectors following years of war and economic sanctions.
Most of the country’s dilapidated factories remain idle almost nine years after the US-led invasion.
Some were looted while others are located in areas that are still considered unsafe.
“The project is scheduled to run next year. We plan to produce 3,000 vehicles per year and will hire around 700 Iraqi workers,” Ali Al-Obaidi, Numoor’s managing director, said.
MAN on Wednesday cut its production in Europe for the third quarter and warned that demand in the region would likely remain muted for the rest of the year.
