German engineering giant Siemens says it is preparing to sign a major deal with Iran to develop the country’s railway system.
Reuters quoted an unnamed industry source as saying that top Siemens officials will arrive in Tehran on Friday to discuss the deal which is expected to be worth above €2 billion ($2.25 billion).
It will involve an order for track technology and ICE 3 trains, a model of intercity train in use in Germany.
Reuters added that Germany’s Transport Minister Alexander Dobrindt is also expected in Tehran on Friday.
Minister Dobrindt is expected to discuss the expansion of mutual cooperation over a variety of areas. He will head a major trade delegation during his meeting.
German Vice Chancellor and Economy Minister Sigmar Gabriel traveled to Iran at the start of the month and during that trip Siemens got an order to build parts for 50 locomotives, Reuters added.
The two countries during Gabriel’s visit signed a range of business deals in what was seen as a move which could take economic relations between the two countries to a new level.
Gabriel led a delegation of 160 businesspeople to Tehran. Siemens AG and automaker Daimler AG, as well as several others such as plant constructor Keller HCW, steelmaking plants constructor SMS Group and INTRA industrial solutions were also represented in the delegation.
This was his second visit to Iran since the country reached a deal in July last year to restrict certain aspects of its nuclear energy activities in return for the removal of some economic sanctions that had been imposed on it for several years.