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French Carmaker Signs Deal To Build Citroens In Iran

French carmaker Peugeot-Citroen (PSA) said it has signed a preliminary agreement with Iranian company SAIPA to produce and sell Citroen cars in the country.

In a statement released on July 21, the Paris-based carmaker said PSA and SAIPA will invest more than $330 million over five years.

PSA said it would sign a final agreement with SAIPA, Citroen's longtime partner in the Islamic republic before international sanctions, by the end of the year.

The first of three planned new Citroen models is expected to be launched in Iran in 2018.

The move follows a deal by PSA last month on a $450-million deal with another of its Iranian partners, Khodro, to build 200,000 Peugeot vehicles a year in Iran by 2018.

Western carmakers have been looking to return to Iran after international economic sanctions were lifted in January when a landmark nuclear deal with world powers took effect.

Based on reporting by AFP and Reuters