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How economic sanctions on Iran chasing away Swedish large companies from that countryFriday, 10 February 2012
It is very clear that the economic section imposed on Iran will hit hard on Swedish companies that had started looking at the trouble nation as its new major market.
In the face of it, it is not just Volvo which has started packing to leave the country because of escalating sanctions. "Our situation looks about the same," said Scania's press officer Hans-Ake Danielsson.
The idea that truck manufacturer Volvo is affected by the sanctions against Iran is not new news as we reported on Wednesday.
"We note simply that the interest in our products goes down, our customers can not buy, "said Volvo's press office to the Swedish business daily, Dagens Industri on Wednesday
But it had now stood out clearly that Volvo is not the only Swedish company which is affected by the sanctions against Iran. The situation for rival Scania also looks about the same.
"The sanctions bite," said Scania's press officer Hans-Ake Danielsson and describes the company's activity in the country as very low at the moment.
Scania does not have any operations in the country. Instead, it is counts on independent distributors to handle its business and sales in Iran.
Several companies have already had previously put their growth strategy on Iran.
"We chose 2010 to take no new business in Iran. However, we will proceed with the contracts we have signed, "says Ericsson’s press spokesman Fredrik Hallman. He says that the company now following developments there closely.
Even the cosmetics company Oriflame has chosen to close down its Iranian operations back in 2010 and at the moment has no business in the country. Trade restrictions have also been a hindrance to Atlas Copco which has force it to leave the country.
Engineering group ABB is among those who left the earliest and started decommissioning of its Iranian operations. As early as November 2007, ABB would not seek new business opportunities in Iran.
Contracts already signed would still go ahead according to Antonio Ligi, who is responsible for media relations at ABB according to Swedish media reports.
In addition, the company sold ABB Lummus Global of about the same time, accounting for a larger part of ABB's oil and gas operations in Iran.
ABB has since then continued to scale down operations in Iran and decided in 2011 to withdraw completely from the oil and gas sector in Iran.
"Because of this, the sanctions have little impact on ABB, "concludes Antonio Ligi.
By Scancomark.se Team
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