Šempeter pri Gorici, 20 March (STA) - Car electronics maker Iskra Avtoelektrika has sold its Iranian subsidiary to a local investor, citing the economic crisis, the unstable business environment in Iran and an uncertain future for Iskra Autoelectric Iran as the reasons for its decision.
The company wrote on Tuesday that it had managed to reverse a negative trend at the Iranian subsidiary in November last year, only to see its effort quashed by a major drop in the value of the local currency in December.
Business conditions further deteriorated this year in the face of the difficult political and economic situation in Iran. There is also mounting international pressure on Iran (the EU is advising a withdrawal of European companies), including with threats of a military attack.
The management of Iskra Avtoelektrika, based in Šempeter pri Gorici, assessed that Iskra Autoelectric Iran cannot operate with a profit in such conditions. Also, keeping the company on track in the future would not be possible without additional investment and an appropriate local partner.
What is more, the production line in Iran (alternators and starters) is not part of Iskra Avtoelektrika's long term development strategy, the company wrote.