Iran Khodro Khorasan company was established under the agreement between Iran Khodro company and Khorasan state authority in january 2000. This factory is located on 760 acres close to the still developing Binalood new town (estimated to have a population more than 100,000 people in the future). The site is situated at a distance of 55 Km from Mashad on the Mashad-Neyshabour high way. The location/site is near cross junction of the railroad north – south (Sarakhs-Bandar Abbas) and east – west (Mashhad -Tehran- Tabriz). The project activities began at the end of 2002. All the essential facilities such as electricity, gas and communications have been provided at factory site. Over 600 apartments are still under construction for housing of employees. This project has been designed to produce 100000 vehicles annually (20 vehicles per hour) in an 125000 square meter area, and to permanently employ 2300 professional and create thousands of employment opportunities. The trim shop, with its 35000 square meter area, started trial production in May 2005. The first phase was inaugurated with the presence of the vice president, the minister of industry, governor of Khorasan, and a number of high government and state officials, senators from Parliament, and Iran Khodro directors and managers. Now The production rate is 340 vehicles per day . The Body shop and Paint shop, with their 80000 square meter area, are ready. The construction company in charge is Iran Khodro Khorasan Sazeh Co. and the machinery installation will be done by TAM Iran Khodro Company. The PT/ED paint-line equipment has been purchased from DURR, Germany and is in the final installation phase. This paint-line is state-of-the-art technology in the automotive paint industry (RoDIP-3 system).