Financial Tribune - Parts manufacturer SAPCO, affiliated to Iranian carmaker SAIPA, has signed agreements worth 4.2 trillion rials ($37 million) with Ferdowsi University of Mashhad and several industrial units based in Khorasan Razavi Province.

The agreements aim to tap into the potentials of domestic academia and private firms to boost Iran�s hard-pressed auto industry.

The agreements were signed on Tuesday during an event held in the holy city of Mashhad, SAIPA�s website reported.

Mansour Mansouri, director of SAPCO, said that in accordance with the agreement, local parts makers will help SAPCO localize the technology needed for making 34 key parts that used to be imported. Localizing the technology will help Iran curb capital flight to the tune of �40 million.

In addition to industrial collaboration, the company has also entered into an agreement with Ferdowsi University of Mashhad to exchange technical know-how between the graduates and experts in the fields of auto manufacture and mechanics.

Visiting the tech centers and research institutes at the university, Mansouri emphasized that innovative and smart solutions developed by the young talented teams can help boost the automotive industry and upgrade the sector in terms of production technology, designing and parts.

The move is in line with the government's efforts to reduce the country's dependency on imports and promote localization of industries.