Focus: North Point Iran Food Industrial State

The Full Package

The Full Package

May. 12, 2013

An initial investment of $176 million, including a foreign contribution of $134 million in machinery, technology, and equipment, is expected to help North Point Company meet its goals for the project. One such target is to achieve a production capacity of 250,000 tons per year, a figure that could be expanded up to 326,400 tons per year if additional food-processing and packaging companies decide to establish operations in the complex. The presence of raw materials and affordable manpower and energy in the surrounding region is also conducive to the project's goals.

At just 101 kilometers from Tehran, Qavzin Province easily connects to major transportation lines via rail, road, and air. The strategic location of the site allows products to be shipped to 23 of Iran's provinces through land links such as the Sarakhs railway in the north and the Jolfa and Sarv railways in the south, as well as expressways that pass through or near the site. Moreover, the complex is within close proximity of Payam International Airport, the country's main cargo hub.

Since it was conceived in the late 1990s, the project has been carried by Iran's potential to become a prime exporter of halal products in the Middle East and beyond. When fully operational, North Point Company anticipates that 85% of the complex's output will be exported, with the remaining 15% sold on the local market in an area that records a constant demand for foodstuffs. According to recent reports, goods produced at the complex will primarily be destined for foreign markets in Central Asia and the Persian Gulf, as well as Turkey, Syria, Pakistan, and Afghanistan.

In addition to the establishment of trade relations between Iran and new markets, the complex will promote increased industrial activity in the local private sector, contribute to the transfer of food industry technology, boost the country's non-oil exports in accordance with the fifth Five-Year Development Plan (FYDP), and create jobs outside of the capital city of Tehran. With departments ranging from maintenance and repair to security and cleaning, the complex is expected to employ approximately 4,600 people directly.

A variety of companies in the agriculture and industry sectors will operate at the complex to support the development of Qavzin as a hub for food production and exports. Among the main products the complex is expected to produce are vegetables, fruits, canned and uncooked food, ready-made meals, packaging for meat and beans, dried products, and fruit concentrate and juice. To accommodate the storage of these and other value-added products, the complex will feature a 50,000-ton cold storage unit.