Volvo Truck Corporation now re-establishes its presence in Iraq by signing an importer contract with the Iraqi company Zam Zam Spring General Trading. A Letter of intent has also been signed for delivery of 1,000 trucks to the Iraqi Ministry of Transport and its related state companies.
The intention is to deliver trucks for operation in both long haul, construction and garbage collection during a period of two years, until mid 2013.
The local automotive distribution company Zam Zam Spring Group has its head office in Baghdad and dealers and service points in the regions of Baghdad, Erbil, Dohuk and Basra.
"Volvo is a very strong truck brand in Iraq and we are happy to re-enter the market in cooperation with Zam Zam Spring Group. We are ready to continue to deliver trucks and after sales support to our Iraqi customers and plan to develop our aftermarket presence in the country", says Stefan Soenchen, General Manager, Volvo Trucks' Iraq operations.
In parallel, Volvo Trucks and Zam Zam Spring Group have initiated activities and plans for setting up local assembly of Volvo trucks in Iraq.
The Swedish Trade Council has worked closely with Volvo Truck Corporation in the process of closing the agreements. Iraq is considered one of the countries with the highest growth potential in the Middle East which also means possibilities for a strong growth in the heavy duty truck segment in the years to come.