Teheran – Zentrum der Industrie

New:

2017 on the new trade

fair ground at the Shahr-e-

Aftab Complex!

Following the lifting of economic sanctions, Iran is currently considered

to be one of the world’s most attractive investment markets. The back-

log of requirements relating to the modernisation of its industrial

infrastructure is exceptionally great in Iran. In addition to modernising

the oil industry, it is primarily the automobile construction, the chem-

ical industry and the health sector that offer enormous market poten-

tial in terms of machine and plant engineering.

Those who launch business activities in Iran right now will secure a

head start in an extremely exciting market. The successful inaugural

AMB Iran in May 2016 provides an impressive confirmation of this.

Discussions with exhibitors and international organisations in Tehran

revealed that a significantly higher commitment by exhibitors can be

expected for 2017. Several international pavilions have already con-

firmed their participation in the 2017 event.

The relocation to the Shahr-e-Aftab trade fair ground and its

highly efficient service partners create the best conditions for

a successful AMB Iran.

www.AMBiran.com

Market deregulation offers the best basis for profitable business transactions – an opportunity to be grabbed!

General Industrial Sectors

Iranian imports are expected to increase by as much as 20 billion USD

between 2015 and 2017. It has been calculated that 20 % of these

will involve machinery and equipment.

Iran: Additional imports by sector with sanctions lifted (USD bn)

Sources: UNCTAD, Euler Hermes

4.0

5.0

0.2

1.1 1.21.4

1.7

2.52.7

3.1

4.1

Fuel

s

Chem

ical

s

Part

s &

com

ponen

ts

Agri-f

ood

Elec

tronic

dev

ices

Iron a

nd s

teel

Road

veh

icle

s

Man

ufa

ctu

res

Mac

hin

ery

& e

qu

ip.

3.0

2.0

1.0

0.0

2015 2016 2017

Source: GTAI

GDP (change in %, real)

8

-6,6

2012 2013 2014 2015 2016

-1,9

4,3

0,8

4,44

0

-4

-8

2017

5,4

Iran‘s economic development from 2015/16 to 2017/18

Source: Statistical Centre of Iran

26.48 % Manufacturing

& mining and quarrying

17.19 % Wholesale and retail trade; repair of

motor vehicles and personal and household goods

14.8 % Real estate, renting

and business

10.47 % Agriculture,

hunting, forestry and

fishing

9.27 % Transport, storage

and communication

4.88 % Construction

3.75 % Public administration and

defence; compulsory social security

2.66 % Education

1.92 % Health and social work

1.92 % Water supply, electricity and natural gas

4.45 % Other services and net tax

on imports

2.21 % Financial

The Iranian economy in 2016

Economic Growth

Following the imposition of sanctions in 2010, the Iranian economy

slumped in 2012 and 2013. The sanctions also forced the economy

of Iran to diversify beyond the oil and gas industry.

Iran’s machine engineering market is set for a significant upswing. The

many major projects currently planned, as well as expansion invest-

ments and the necessary renewal of often extremely outdated indus-

trial plants offer great opportunities for machine construction firms.

Iran in Figures

Automobile Suppliers / Component Market

The automobile parts industry in Iran is very well developed, nevertheless there is still a high demand for imports. There are some 15,000 pro-

duction sites in Iran. Yet, 60 % of components for the automobile industry are still being imported.

Auto Component Import Partner Countries (~USD 0.9 Billion)

China 49 %Republic of Korea26 %

Turkey 8 %

Romania 4 % France 3 %

Others 10 %

Auto Component Export Partner Countries (~USD 21 Million)

Figures in % (2014)

ITA (2015): Market overview of Automotive Sector in Iran

Turkey 29 %France 20 %

Italy 23 %

Russian Federation 12 %

Poland 5 %

Others 11 %

UZBEKISTAN

IRAN

Asaka: GM, Chevrolet, DaewooTashkent: GM, ChevroletKhorezm: GM, Daewoo

PAKISTANSujawei: Hyundai/Kia, Hyundai

Karachi: Suzuki, Suzuki;Toyota, Toyota;

Tata, Land Rover; Renault-Nissan, Nissan

Tehran: Kerman Khodro, Jianghuai, Lifan; Bahman Group,Mazda, Zhongxing; Bonyan Auto, Changan, Fiat: Iran Khodro,Dacia, Iran Khodro, Peugeot, Renault; Mehran Pars, Iran Khodro;Modiran Vehicle, Chery, Speranza; Pars Khodro, Dacia, Kia,Nissan, Renault; Rayen Vehicle, Great Wall; SAIPA, Citroën, KiaSemnan: Iran Khodro, Iran Khodro, PeugeotTabriz: Iran Khodro, Iran Khodro, Peugeot, RenaultKashan: SAIPA, Kia, SAIPAGarmsar: Fiat/Chrysler, FiatKhorasan: Iran Khodro, Peugeot, Suzuki

Automobile production in Iran

The number of registered vehicles is set to increase significantly. Currently, 90 % of vehicles sold in the country are manufactured locally. The pro-

duction capacity of Iranian manufacturers currently stands at 2 million vehicles (2014/15), but the actual utilisation is just 55.5% (1.11 million

vehicles).

Passenger car sales in Iran 2010-2020 (m units)

Sources: IHS Global Insight, Frost & Sullivan, Roland Berger

2.0

1.4

1.5

0.9

0.7

1.4

1.8

1.0

0.8

2010 2011 2012 2013 2014 2015 2016e 2017e 2018e 2019e 2020e

1.5

1.0

0.5

0.0

Base scenario Additional volumes in optimistic scenario

Historic Forecast

-53 %16 % p.a.

Extensive need to catch up on production technology

In the wake of the Vienna Agreement, experts are expecting the revi-

talisation of the formerly good economic relations between Iran and

the industrial nations – particularly in the field of production enginee-

ring. Much needed modernisation measures are planned in the oil

industry, which will provide new opportunities for the machine and

plant construction sector. Also in focus are automobile production, the

chemical industry and the expansion of renewable energies. Market

demand is also high in the production engineering sector.

Goods imported by Iran by country of origin in Mio. USD

The majority of imports come from the United Arab Emirates. It may

be assumed that many goods were imported into Iran via this central

trading hub over recent years and that this resulted in massive incre-

ases. More impressive still is the increase in Chinese imports, which

have increased fivefold over the past 5 years. In this context, China

was able to exploit the caution in relation to export exhibited by

many countries in this period.

Iranian imports for specific engineering sectors in thousands of EUR

400.000

350.000

300.000

250.000

200.000

150.000

100.000

50.000

85 87 89 91 93 95 97 99 01 03 05 07 09 11 13

0

Source: VDMA/VDW

The lifting of the sanctions harbours opportunities for the

major industrial nations

Iranian imports according to country (entire engineering sector) in thousands of EUR

2.500.000

2.000.000

1.500.000

1.000.000

500.000

85 87 89 91 93 95 97 99 01 03 05 07 09 11 130

Germany

Japan

Italy

Turkey

China

South Korea

Source: VDMA/VDW

Iran: Additional imports by origin with sanctions lifted (USD bn)

Sources: UNCTAD, Euler Hermes, Sources: Euler Hermes (2015): Iran – back in the game.

0.4

1.2

1.9Total 2015-2017

2015 2016 2017

1.8 2.11.3

0.9

1.0 0.9 0.6 0.5

0.50.0

-0.1

Ger

man

y

Chin

a

UA

E

Fran

ce

Japan

South

K

ore

a

Ital

y

UK

US

India

Turk

ey

Russ

ia0.2

1.0

0.0

0.8

-0.2

0.6

-0.4

Iranian consumer attitudes toward the opportunity for

foreign companies to sell goods and services in Iran

Note: Survey conducted by On Device Research in August 2015 via mobile internet for a sample of 1,000 Iranians

90 %

100 %

80 %

70 %

60 %

50 %

40 %

30 %

20 %

10 %

0 %

Ger

man

y

USA

Japan

87 % 85 %

80 %

Bet

ter

qual

ity

Late

st d

esig

n

More

choic

e

66 %

9 % 9 %

Car

/moto

r

Pers

onal

el

ectr

o.

Com

puting

49 %

40 %38 %

www.AMBiran.com

How good do you consider the quality of products from these countries?

What is the main reason you are inter-ested in imported goods from abroad?

What kind of imported products would you be inter-ested in?

Machine Tools Measuring and Testing Technology Precision Tools

Welding Technology Power Transmission Engineering

AMB Iran 2016 Retrospective

Visitor sectors:

A third of all visitors were from the automobile industry.

33 % Automobile industry

14 % Component suppliers

9 % Tool construction and mould-making sector

5 % Mechanical engineering industry

5 % Electronics sector

Visitors’ areas of responsibility:

29 % Research, development, construction

27 % Manufacturing, production, quality control

26 % Management

8 % Sales and marketing

4 % Other areas

Extremely successful start to AMB Iran:

4,176 m² of exhibition space

111 exhibitors from 12 countries, of which 97 % international exhibitors

2,127 trade visitors from Iran and abroad, of which 67 % from the Tehran region. In addition, 475 trade visitors took part in the accom-

panying symposium.

88 % of visitors were satisfied with their visit to the trade fair and would come again.

According to their feedback, exhibitors were highly satisfied with the

quality of visitors to the first AMB. 86 % of visitors, for example, con-

sidered themselves to be members of the industry, of which the larg-

est groups were from the automotive industry at 33 %, component

suppliers at 13 %, and the mould construction sector at 9 %. Visitors

showed a particular interest in those exhibits that showed machines

in operation.

Throughout the event, lively discussions could be observed at all

exhibition stands, as, according to their own statements, 95 % of the

trade visitors were involved in procurement and investment decision

making. Moreover, 74 % of visitors stated that they had a specific

intention to purchase something and to pursue investment plans.

Of the 111 exhibitor companies, 68 were from Germany. Examples

of other countries represented there were Italy with 18 exhibitors,

Switzerland with 9 exhibitors and Austria with 3 exhibitors. These

exhibitors included global market leaders and sector giants as well

as mid-sized enterprises. 26 of the exhibiting companies took part in

the accompanying symposium.

“The success of the first AMB Iran proves that it was a good strategy to enter the opening Iranian market with the successful brand”, says

Ulrich Kromer, Board Spokesman for Messe Stuttgart. Wilfried Schäfer (Dr.-Ing.), Managing Director at VDW agrees, adding that “the VDW’s

good international network, our experience in the implementation of symposia and the good collaboration with Messe Stuttgart were the

crucial success factors for the inaugural event”.

Opportunities for Participation:

Hall space without stand construction* Euro 405/m² (min. 12m²)

Hall space without stand construction >30m²* Euro 365/m² (min.

30m²)

Stand construction prices*

Complete stand construction packages: from Euro 90/m² (incl. walls,

carpets, power and lighting, furnishings and services)

Bespoke stand constructions available on request

* all prices plus VAT

All-round Service:

We’ll help you with your travel preparations and would be glad to

help you with advice and support. A number of hotel rooms have

already been block booked for the exclusive use of our exhibitors. For

more information, see for example Iran Doostan Tours

www.irandoostan.com

AMB Iran – Exhibition for metal working

Venue: Shahr-e-Aftab Complex, Tehran, Iran

Date: 23. – 26.05.2017

Contact: Landesmesse Stuttgart GmbH

Messepiazza 1, 70629 Stuttgart (Germany)

Ms Nadja Weber

Tel. +49 711 18560-2840

nadja.weber@messe-stuttgart.de

VDW – Verein Deutscher Werkzeug-

maschinenfabriken e. V.

Corneliusstraße 4, 60325 Frankfurt am Main (Germany)

Mr Christoph Miller

Tel. +49 69 756081-59 | Fax +49 69 756081-74

c.miller@vdw.de

Tehran – Centre of Industry

As a city of industry and commerce with universities and colleges,

Tehran is the country’s most important economic and scientific centre.

Around 65 % of all industrial products are produced in the Tehran

metropolitan area.

New Trade Fair Grounds: Shahr-e-Aftab Complex – Key to

Markets

The next AMB Iran will be held at the new trade fair grounds at the

Shahr-e- Aftab Complex. Spread over 25,000 m², it is the newest and

most modern trade fair ground in Tehran. Due to its location and ideal

links to the airport, the three most important highways and the sub-

way, it is very easy for exhibitors and visitors to get to.

The AMB Iran – Metalworking Trade Fair is organised and hosted by

Messe Stuttgart and VDW. This combination promises the kind of

high-quality event you are familiar with in Germany.

Messe Stuttgart has been active in the region for many years, where

it has a strong network, wide-ranging experience and excellent con-

tacts to Iranian buyers, authorities and associations. For many years,

VDW has been organising the well-known VDW symposium in various

locations around the world, and is the best partner for a professional

programme of specialist presentations. The Association of German

Machine and Plant Engineers (VDMA) Trade Association for Precision

and Tool Engineering and the VDMA Trade Association for Measure-

ment and Testing Technology support the event as conceptual spon-

sors, thereby underscoring the internal interest in the event.

Your partners in Iran

Organisers: Promotional supporter:

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AMB Iran

AMB Iran – Specific Themes 2017

Thematic Foci

Metal cutting machine tools Forming machinery Precision

tools, machining tools and chucking tools Components, parts

and machine tool accessories Mensuration and quality-assurance

systems Automation and actuation control system components

Special machine tools Miscellaneous machine tools Soft-

ware, computer systems and peripheral devices Miscellaneous

production technology and devices Services, organisations and

publishers

Technology Forums

In parallel with the trade fair, various forums or theme-parks will be

presented at AMB Iran in which exhibitors will have the opportunity

to present their products and solutions for the Iranian market to a

qualified expert audience. Invitations to these presentations will be

sent to representatives of the most important consumer segments in

Iran such as the oil and gas industry, vehicle production, the steel

industry and medical technology. In addition to traditional AMB sub-

jects such as providing comprehensive information about state-of-

the-art production technologies and machining processes on modern

machine tools, the following topics will be addressed specifically:

“Metal-forming meets… Iran”

Metal-forming machine tools are the pioneers, cover the broadest

product palette in Iran and have a market share of 58 %. The average

annual demand is estimated to be 230 million USD. With the machine

tool sector, the greatest demand is for metal-forming technology.

Within the automobile industry, one of the most important sectors

in Iran, demand is highest for pressing and forging plant. This shows

how great the Iranian market potential is for metal-forming engi-

neering firms.

“Automation meets… Iran”

As the leading importer of electronic and automation technology in

the Middle East, Iran wants to expedite the expansion of its industry

to make the country into a modern and competitive commercial cen-

tre. Sanctions notwithstanding, Iran imported automation technology

products worth 538 million EUR in 2014, which represents an increase

of 21.44 % compared with the previous year. A large area of the

AMB Iran is devoted to automation technology due to its enormous

importance in the modern industrial process chain. The range of

exhibits covers everything from mechanical and electrical automation

to automation technologies and systems to state-of-the-art control

systems and the associated software.

“Education meets… Iran”

“Need for expansion of international relationships for technology

and training transfer.”

(cit. Iran‘s Deputy Labour Minister and Head of the Organisation for

Technical and Vocational Training, Mohammadamin Sazgarnejad)

Iran’s reform planning appears to be aimed at standardising the entire

educational, training and specialist training system and to make it

more transparent. Current subjects of interest to training providers

include training facilities, curriculum development, online training,

teacher training and the implementation of training centres in Iran,

as well as enthusing young people for a career in tool and machine

engineering in order to secure a long-term pool of expert profession-

als for the Iranian machine engineering sector.

“Welding & cutting meets… Iran”

According to figures provided by the World Steel Association, Iran’s

raw steel production increased from 12 million to 16.3 tonnes between

2010 and 2014. In the first half of 2015, 8.4 million tonnes were

produced, which makes Iran the world’s 13th most prolific producer.

This shows the enormous market potential in Iran for companies in

the welding and cutting sector. Therefore, the trade fair is the ideal

platform for manufacturers of modern sheet metal, wire and pipe

processing plant.

“LASYS meets… Iran”

“LASYS meets” is the ideal forum for special application fields, new

areas of application as well as industry trends and innovation for

companies in the laser metal processing industry with an eye on the

Iranian market. Don’t miss the opportunity to present your laser tech-

nologies at the trade fair and in specialist presentations.

www.AMBiran.com