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Siemens Rail Deal With Iran Is Worth at Least $1.6 Billion

  • German company signed a pre-contract to build 500 coaches
  • Iranian capital city Tehran to get upgrade of rail lines
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Siemens AG’s contract to build rail coaches and upgrade train lines in Iran is valued at between 1.5 billion euros ($1.6 billion) and 2 billion euros, making Europe’s largest engineering company one of the earliest beneficiaries of the decision to lift trade sanctions on the country.

“There is a lot of opportunity building up infrastructure,” Chief Executive Officer Joe Kaeser said Wednesday in an interview with Bloomberg TV in Davos, Switzerland. He didn’t specify the time frame of the contract. “If you look at what Iran needs to rebuild its country, it almost looks like a description of business for Siemens.”