The sanctions imposed on Iran are expected to be lifted in the first quarter of 2016. In order to re-establish economic ties with the 80 million people strong market, delegations from around the world are coming to Tehran. German Trade Minister Sigmar Gabriel visited the country in July, a delegation from Lower Saxony has visited Iran a month ago, and finally the Free Stae of Bavaria sent a delegation headed by Bavarian Minister for Economic Affairs Ilse Aigner a week ago. Her entourage counted over 100 Bavarian businessmen.

Many Iranian industries were built upon German technology, said Iran’s Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh in a separate meeting with the head of the Bavarian delegation, Ilse Aigner.

“Iran is keen to set up joint ventures with foreign investors to develop its industries. We are also willing to seize a share of your regional market. Now you can view Iran as the hub of industrial, mining and trade activities,” he added.

Iran and Germany can cooperate, among other things, in sectors of power, advanced industries, electronics, food, medical equipment and steel as well as light, heavy and commercial vehicles. The Iranian minister noted that investment opportunities in chain stores, small- and medium-sized enterprises and industry clusters are also at the ready for Germany.

“Iran is targeting the goal of manufacturing three million automobiles a year. To this end, our country can install German-made engines for buses and trucks under license from Mercedes-Benz, Scania and AB Volvo, provided the production phase is carried out in Iran,” he said. The industries minister also referred to the 24-million-ton production capacity of Iran’s steel and said the figure is set to rise to 55 million tons per annum.

Bavaria is set to open a Trade Office in Theran. The Free State is currently exporting 220 million Euros worth of goods to Iran and Aigner expects the exports to at least quadruple in the near future. She said that one of the goals of the visit is to revive economic bonds and to provide the basis for Bavarian SMEs to trade with Iran. A highlight of the visit was the inauguration of a new production facility of Knauf in Tehran.