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The Iranian railway equipment industry started its activity with wagon production.
It was formed by the inauguration of train-manufacturing company Wagon Pars in 1985. The railway is being developed with Iranian-government backing and forms a part of the Iranian Economic Reform Plan.
The Iran Khodro Rail Transport Industries Company (IRICO) was established in 2003 to produce passenger cars, and the Mapna Locomotive Engineering and Manufacturing Company was established in 2006 to manufacture locomotives.
In March 2011, the first diesel locomotives with an Iranian diesel engine was unveiled. The Iran Heavy Diesel Manufacturing Company (also known as DESA) diesel-powered locomotive is expected to be mass-produced for the Iranian rail network.
In July 2012, a Mapna Locomotive Engineering and Manufacturing Company production plant was officially inaugurated. The plant is projected to manufacture 120 locomotives – with a maximum speed of 160 kilometres per hour (99 miles per hour) – each year.