Renault Group has signed a new joint venture agreement to boost its growth in Iran, bolstering an initial joint venture struck last year.

The French carmaker has expanded the joint venture agreement it signed with Industrial Development & Renovation Organization of Iran (IDRO) to include Parto Negin Naseh, an importer of Renault products in Iran, according to the Renault Group.  Renault will be the majority shareholder.

The new joint venture company will push for the development of a plant with an initial production capacity of 150,000 vehicles a year, supplementing the automaker’s existing capacity of 200,000 vehicles a year in the country, according to the Renault Group. The new venture also includes the development of an engineering and purchasing center to support the development of local suppliers.

The manufacturing facilities will be in Saveh, a city in Iran. They will be owned and operated by the joint venture company.

 “In a rapidly expanding Iranian market, it was vital to implement plants, engineering and purchasing center. This joint venture will enable an acceleration of our growth in this country" said Thierry Bollore, Member of Groupe Renault Executive Committee and Chief Competitive Officer.

Finalization of the transaction remains subject to a number of conditions precedents, including regulatory approvals, formation of the new company and preparation of the industrial assets for the project, according to the automaker. The parties expect completion to take place on or around Oct. 30, 2017.

“The signing of this new joint venture reinforces the strategic choices we have made in Iran and will open new perspectives in a 2 million vehicle market projected in 2020”, said Stefan Mueller, Member of Groupe Renault Executive Committee and Chief Performance Officer.

In the first-half of 2017, Groupe Renault sales in the country increased 100.3% year on year, for a total 68,365 vehicles and a 9.7% share of the market.