Financial Tribune- The largest local carmaker, Iran Khodro, has signed a joint venture deal on the production of gearboxes in Iran with a subsidiary of the South Korean automotive company, Hyundai PowerTech Company.

The deal was signed by IKCO’s Director Hashem Yekezare and CEO of Hyundai PowerTech Hae-Jin Kim on Oct. 24 in Tehran, the local automaker’s official news outlet reported.

As per the deal, 4,000 six-speed automatic gearboxes will be produced annually in Iran. The gearboxes are to be used on IKCO’s new vehicles—some manufactured in collaboration with other foreign automotive companies, including Peugeot.

According to the company’s press release, some of the gearboxes will be exported.

Initially, a memorandum of understanding between IKCO and Hyundai PowerTech was signed in May during one of the largest Iranian automotive events.

On May 11, IKCO unveiled several agreements with international automotive companies, namely Pininfarina, Mahle group, Hyundai PowerTech, Punch Powertrain and Benteler Automotive.

The estimated cost of the total number of 10 deals is 100 trillion rials ($2.6 billion).