Speaking in a brainstorming meeting of minister of industry, mine and trade with active associations in the industry, mine and trade sectors, Mr. Alireza Mohammadi Daniali said that the main problem of the national industry is command pricing and nobody knows this type of pricing has been copied from which successful global model.

He emphasized that industrial strategy should be under the shadow of macro-economic strategy but command pricing leads to destruction of industry and economy.

Daniali blamed the smuggling and fake products as the main problems of the home appliance industry and noted that fortunately good move has started by the industry ministry in the field of smuggling and fake products but its total elimination needs a national determination.

He added that despite the double fold rise in home appliance production, recession dominates this industry and country needs some solutions to come out of this deadlock.

He reiterated that the ministry pays for the idealistic policies that some part of the ruling establishment pursues it and in fact these policies are a rent-seeking opportunity which national economy gives the political sector.

Meanwhile an expert in the field of home appliance industry told IRNA that recent riots in the country have deepened the existing recession in the home appliance market.

He said that internet disrupt or low internet speed has not so much affected the production trend in the companies because orders are received by the phone or emails but when the purchasers cannot afford to buy, the products are stored in the warehouses and it will lead to the deepening of current recession.

He noted that in the past two years the pandemic was the main reason for the recession in the market but the producers and vendors took some initiatives and tried to sell their products in the virtual space.

He went on to say that because of gradual trust of people to this sort of sales, the market was revived and people got used to buy their products by internet rather than physical presence in the stores and this also helped the number of smuggled goods is reduced in this virtual market.

He noted that the current condition in the country and recent riots have pushed the people to buy gold or dollars and therefore they do not pay attention to the home appliance market and therefore recession in the home appliance market has deepened more than before.

He predicted a tough time for this industry and production sector by the end of the current year. He noted that recent incidents and recession has forced companies to reduce their products, adding that the home appliance production capacity can meet the demands of the country and neighboring countries.

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The ministry’s data show that 179,600 washing machines have been manufactured during the two-month period of this year.

As reported, over 15 million sets of home appliances have been manufactured in the country during the past Iranian calendar year (ended on March 20), which was 78 percent more than the output in its preceding year.

Rise in home appliances manufacturing and export has been also planned for the current year.

Iran’s Deputy Industry, Mining, and Trade Minister Mehdi Sadeqi Niaraki has stated that the production of home appliances in the country has increased by 36 percent following the exit of foreign brands.

“Following the imposition of U.S. sanctions and the withdrawal of South Korean companies from Iran, the production of Iranian home appliances increased by 36 percent,” Niaraki said on the sidelines of a visit to a production unit.

According to Niaraki, the indigenization of the knowledge for the production of such products has also increased by 20 percent since the Iranian calendar year 1396 (ended on March 20, 2018).

“Currently, Iranian producers have indigenized the knowledge for manufacturing about 70 percent of the country’s home appliance needs, and the figure has reached 90 percent for some products,” he said.

Niaraki noted that considering the Iranian home appliance industry’s infrastructure and capacities, the country will be able to become an exporter of such products in the near future because most of the raw materials needed by the mentioned sector are produced domestically.

Regarding the return of foreign brands like Samsung and LG to the country, Niaraki said: “Currently, the return of foreign companies is not on the agenda; domestic companies have found their place and are fully capable to produce and meet the needs of the country.”

Stating that the Industry, Mining, and Trade Ministry will definitely support domestic manufacturers and national brands, the official added: “Today we have the necessary manpower, knowledge, and infrastructure in the field, so there is no reason to look for foreign sources to meet the country’s demands.”

Over the past few years, the Iranian government has been following a new strategy for supporting domestic production to neutralize the impacts of the U.S. sanctions while reducing the reliance of the economy on oil revenues.

The home appliances sector has been one of the pioneers in this regard and like many other areas, the production of home appliances has witnessed a significant rise in the past two years so that in the Iranian calendar year 1398 (ended on March 19) this industry’s production capacity increased by 10 percent compared to the preceding year.

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The ministry’s data show that 279,600 refrigerators and freezers have been manufactured during the two-month period of this year.

As reported, over 15 million sets of home appliances have been manufactured in the country during the past Iranian calendar year (ended on March 20), which was 78 percent more than the output in its preceding year.

Rise in home appliances manufacturing and export has been also planned for the current year.

Iran’s Deputy Industry, Mining, and Trade Minister Mehdi Sadeqi Niaraki has stated that the production of home appliances in the country has increased by 36 percent following the exit of foreign brands.

“Following the imposition of U.S. sanctions and the withdrawal of South Korean companies from Iran, the production of Iranian home appliances increased by 36 percent,” Niaraki said on the sidelines of a visit to a production unit.

According to Niaraki, the indigenization of the knowledge for the production of such products has also increased by 20 percent since the Iranian calendar year 1396 (ended on March 20, 2018).

“Currently, Iranian producers have indigenized the knowledge for manufacturing about 70 percent of the country’s home appliance needs, and the figure has reached 90 percent for some products,” he said.

Niaraki noted that considering the Iranian home appliance industry’s infrastructure and capacities, the country will be able to become an exporter of such products in the near future because most of the raw materials needed by the mentioned sector are produced domestically.

Regarding the return of foreign brands like Samsung and LG to the country, Niaraki said: “Currently, the return of foreign companies is not on the agenda; domestic companies have found their place and are fully capable to produce and meet the needs of the country.”

Stating that the Industry, Mining, and Trade Ministry will definitely support domestic manufacturers and national brands, the official added: “Today we have the necessary manpower, knowledge, and infrastructure in the field, so there is no reason to look for foreign sources to meet the country’s demands.”

Over the past few years, the Iranian government has been following a new strategy for supporting domestic production to neutralize the impacts of the U.S. sanctions while reducing the reliance of the economy on oil revenues.

The home appliances sector has been one of the pioneers in this regard and like many other areas, the production of home appliances has witnessed a significant rise in the past two years so that in the Iranian calendar year 1398 (ended on March 19) this industry’s production capacity increased by 10 percent compared to the preceding year.

The post Manufacturing of refrigerators, freezers rises 29.6% in 2 months on year appeared first on Iran News Daily.

Last year, the industry was able to achieve 78 percent growth despite the restrictions on the manufacturing sector, the official said, adding, “While foreign brands left Iran, manufacturers were able to achieve this leap by relying on domestic capacities.”

Back in April, the official had said that considering the Iranian home appliance industry’s infrastructure and capacities, the country will be able to become an exporter of such products in the near future because most of the raw materials needed by the mentioned sector are produced domestically.

Stating that the Industry, Mining, and Trade Ministry will definitely support domestic manufacturers and national brands, the official added: “Today we have the necessary manpower, knowledge, and infrastructure in the field, so there is no reason to look for foreign sources to meet the country’s demands.”

Over the past few years, the Iranian government has been following a new strategy for supporting domestic production to neutralize the impacts of the U.S. sanctions while reducing the reliance of the economy on oil revenues.

The home appliances sector has been one of the pioneers in this regard and like many other areas, the production of home appliances has witnessed a significant rise in the past two years so that this industry’s production capacity increased by 24 percent in the past Iranian year, and by 10 percent in its preceding year.

Earlier this month, the secretary of the Association of Industries of Household Appliances of Iran announced the 24-percent growth in the home appliance output over the past year and said, “We expected to produce about 12 million units, including small and large appliances in the previous year, however, the figure increased to about 15 million by the yearend, registering a 24 percent growth compared to the preceding year.”

“We also had good growth in after-sales service, product quality improvement, indigenization and exports, so that last year $345 million worth of home appliance products were exported,” Abbas Hashemi added.

Pointing to the advantages of home appliance industry in Iran, the official said: “Production of home appliances in the country is an advantage considering cheap energy and workforce and the country’s geographical situation”, he noted.

“This industry should be more supported,” he stressed.

Regarding the return of foreign brands to the country, Hashemi said: “we should prevent the imports of foreign finished products into the country in order to support domestic producers.”

He further noted that foreign companies can invest in this industry and co-produce their products with local manufacturers.

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