SHANA – The Oil Industries' Engineering and Construction (OIEC) has signed a €60m memorandum of understanding (MoU) with local firms for local manufacturing of petrochemical machinery and equipment.

The deal was signed on Tuesday between OIEC, Machine Sazi Arak and AzarAb Industries.

The document aims to provide the necessary equipment for two petrochemical companies, namely Kian (55% share) and Dehloran (62% share).

By local manufacturing of the items, Mashin Sazi Arak will save Iran €40 million and AzarAb Industries €20m.

Addressing a ceremony to sign the contract, Gholamreza Manouchehri, the OIEC CEO, said that the company was running the largest projects in the petrochemical, liquefied natural gas (LNG) and upstream sectors of the Iranian oil industry and had ordered nearly 1 billion dollars’ worth of items to domestic suppliers.

"By joining traditional companies, startups and accelerators play an important role in speeding up the process of internalizing equipment manufacturing needed by industries,” he said.

Manouchehri said: "Despite the difficulties in the field of domestic manufacturing, I can confidently say that with the help of Iranian manufacturers we can finish the work and there will be no deadlock in this regard."