UANI Calls on Germany’s MAN to End Business in Iran

  UANI Calls on Germany’s MAN to End Business in Iran

 German Firm is Directly Involved in the Construction of New Shipping Vessels
                            for the Iranian Regime

Business Wire

NEW YORK -- January 9, 2013

On Wednesday, United Against Nuclear Iran (UANI) called on the German
engineering and automotive firm MAN SE (MAN) to immediately end its business
in Iran. MAN is a subsidiary of the Volkswagen Group.

UANI has learned that MAN is directly involved in the construction of new
vessels for the Iranian regime. Specifically, MAN is cooperating with the
Persian Gulf Shipbuilding Corporation, a regime-owned entity deeply involved
in Iran’s petrochemical and shipbuilding industries.

UANI is also highly concerned by MAN Diesel & Turbo’s involvement in the
construction of 12 new Very Large Crude Carriers (VLCCs) for Iran, currently
occurring in Chinese shipyards.

Additionally, a number of Iranian oil tankers are fitted with MAN engines, and
MAN also sells vehicles to Iran through MAN Truck & Bus. MAN lists six Iranian
dealers for its commercial vehicles.

UANI finds MAN’s work with Iran highly irresponsible at a time when the U.S.
and EU are trying to isolate the regime and are specifically targeting its
shipping industry. As MAN aids the Iranian regime, it has received over $44
million in U.S. Government contracts since 2000. UANI is calling on MAN to
completely end all business related to Iran.

In a letter to MAN SE CEO Georg Pachta-Reyhofen, UANI CEO, Ambassador Mark D.
Wallace, wrote:

… UANI understands that MAN is directly cooperating with IRISL on the
construction of at least five new vessels for the Iranian regime. The Persian
Gulf Shipbuilding Corporation (“PGSC”) is currently constructing two chemical
tankers and three container ships for the NITC, IRISL and Hafiz Darya Shipping
Co. (“HDS”), an IRISL front company. The vessels include the “Iran Fahim”
(IMO: 9286140), “Iran Falagh” (IMO: 9286152), “Iran Kashan” (IMO: 9270696),
“Sharhr E Kord” (IMO: 9270684), and “Shiba” (IMO: 9270646). …

MAN’s Iranian partner in the construction of these vessels, PGSC (aka Iran
Shipbuilding & Offshore Industries Complex Co, “ISOICO”), is a regime-owned
entity heavily involved in Iran’s petrochemical and shipbuilding industries
MAN Diesel & Turbo also appears to have partnered with the Iran Heavy Diesel
Engine Manufacturing Company (“DESA”), a regime-controlled corporation that
provides services to such sanctioned entities as the Iran Marine Industrial
Company (“SADRA”) and the National Iranian Drilling Company (“NIDC”). As you
know, both ISOICO and DESA are subsidiaries of the Industrial Development and
Renovation Organization of Iran (“IDRO”), an arm of the Iranian regime
controlled by the Islamic Revolutionary Guard Corps (“IRGC”) and blacklisted
by the U.S. and EU for its activities in a wide range of nuclear and military
industries. In light of their connections to IDRO, MAN’s apparent partnerships
with ISOICO and DESA are clearly unacceptable.

Moreover, MAN Diesel & Turbo appears to be involved in the construction of 12
new Very Large Crude Carriers (“VLCCs”) for the NITC. The vessels, which are
being built in shipyards owned by the China Shipbuilding Industry Corporation
(“CSIC”) and the China State Shipbuilding Corporation (“CSSC”), will expand
the NITC’s carriage and storage capacity by up to 24 million barrels.
Specifically, MAN Diesel & Turbo appears to be supplying CSIC and CSSC with
parts and technology to build low and medium-speed marine diesel engines,
including the CMD-MAN B&W 7K90MC-C, CMD MAN B&W 8K98MC and CMD-MAN B&W 6S70MC
models. Such marine diesel engines are necessary to power vessels like Iran’s
new VLCCs.

… multiple sources, including MAN publications, state that a number of Iranian
oil tankers are fitted with MAN Diesel & Turbo SE (“MAN Diesel & Turbo”)
engines. Specifically, the Iranian tankers “Camellia” and “Majestic” are
reportedly fitted with MAN B&W 6S70MC6 21 and 6S90MCC22 engines, respectively.
The Iranian tanker “Justice”, formerly the “Dadgar”, is also fitted with a MAN
Diesel engine, model 6S90MC-C19.

UANI has highlighted the shipping industry as an area where the international
community can further pressure Iran. In a May 17, 2012 Wall Street Journal
Op-Ed, six UANI board members wrote that "the world must deny Iran's access to
international shipping, a move that would severely affect the regime given its
dependence on global trade and seaborne crude oil exports."

All thirteen firms of the global-leading International Association of
Classification Societies have stopped certifying Iranian vessels following
UANI’s campaign, including Bureau Veritas, Germanischer Lloyd, the Russian
Maritime Register of Shipping, Korean Register of Shipping, China
Classification Society, and ClassNK. UANI has also announced that Barbados,
Hong Kong, Moldova and Mongolia have stopped their reflagging of Iranian

UANI has requested a response from MAN by January 17, 2013.

Click here to read UANI’s full letter to MAN.
Click here to send a message to MAN.
Click here to learn more about UANI's Shipping Campaign.
Click here to learn more about UANI’s Germany Campaign.


United Against Nuclear Iran
Nathan Carleton, 212-554-3296
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