A Chinese company plans to open an automobile assembly plant in Erbil, expanding industrial investment in the Kurdistan Region.
Ma’ruf Azizkhan Harki, deputy head of the Erbil Chamber of Commerce and Industry, confirmed that the chamber reached a preliminary agreement with China’s IAT Automobile Technology. He said the project aims to strengthen the local automobile industry and attract new investors.
IAT focuses on vehicle design and spare parts manufacturing. First, the company will produce parts in China. Then, it will ship them to the Kurdistan Region for final assembly. This approach will reduce costs and support local industry.
Meanwhile, officials have identified a proposed site for the factory. However, authorities are still reviewing the final location. At the same time, teams are working on budget planning and legal approvals. Once the relevant ministry approves the project, an investor will officially manage the plant.
Before reaching this agreement, the Erbil Chamber reviewed several proposals. Eventually, it selected IAT due to its product quality and flexible production model. Harki said the Chinese company supplies vehicles based on market demand. Therefore, he believes the project meets the region’s industrial needs.
IAT was founded in 2007 and is headquartered in Beijing. The company ranks among China’s early state-certified high-tech enterprises. It focuses on research, development, automobile design, and parts manufacturing.
In addition, a Chinese delegation led by Amir Saadat, commercial director of the IAT Group, will hold further talks. The meetings will take place during the Erbil International Automobile Exhibition, also known as the Erbil Autoshow.
Looking ahead, the long-term goal is to build a large and specialized automobile assembly plant in the Kurdistan Region. He added that the chamber will provide facilities and support to ensure the project succeeds.
Chinese companies continue to show strong interest in the region. For example, during the Erbil Autoshow in March 2024, Chinese firms made up half of the participating companies.
Overall, trade and economic ties between the Kurdistan Region and China continue to grow. Chinese investment supports infrastructure, energy, and manufacturing projects. Currently, annual trade between China and Iraq is estimated at $55 billion.
