Cylinder System: we do not export to Iran

Cylinder System d.o.o. does not export its products to Iran, emphasized today the company’s CEO Farhang Monem on the occasion of the announcement by the U.S. Department of Finance regarding 37 companies that violate the embargo on deliveries to that country, among which is mentioned this company from Slavonski Brod that is engaged in the production of seamless gas cylinders.

Monem is astonished that Cylinder System is on the blacklist as this company last conducted a business transaction with Iran in 2008 when they exported just under 1,000 gas cylinders used in automobiles, and for that export deal, they received approval from the Croatian Ministry of Economy.

To illustrate that the company complies with the laws, Monem cites the example that a year later the shipbuilding company planned to export valves for automotive gas cylinders, but they did not receive the ministry’s approval, and the deal was not realized.

The company Cylinder System is the legal successor of the former company Đuro Đaković Seamless Cylinders, which was purchased by Iranians in bankruptcy in 2006, and today it is in mixed Iranian-Canadian-German ownership. Its current majority owner is the German company Reyco GmbH, which also owns MCS International GmbH, the world’s largest manufacturer of steel seamless cylinders.

Monem assumes that the Slavonski Brod company ended up on the blacklist precisely because of Reyco GmbH, which holds 68 percent ownership in it, and is also among the companies considered suspicious by Americans.

“Just because they are owners does not mean they manage the company; it is managed by the director. We only exported to Iran once (in 2008) and that was with permission,” emphasizes Monem, noting that they export 95 percent of their production. The main markets for Cylinder System are Italy, Greece, Lithuania, Portugal, Serbia, North Macedonia, and Slovenia.

Monem adds that he will also seek an explanation for this situation from the Croatian Ministry of Economy.