3 Mar 2010- Medya News – Ingersoll-Rand PLC (IR) is being targeted over its ties to Iran by a lobby group that has already helped push other industrial groups to sever their business interests in the country.
New York-based United Against Nuclear Iran (UANI) has called on the diversified industrial company to stop servicing Iran’s energy sector and accused the company of failing to adequately disclose its business activities in the country.
According to UANI, Ingersoll Rand conducts business with Iran through its non-U.S. subsidiaries, and is a leading manufacturer of air compressors, which are widely used in industrial plants, including nuclear reactors and in the oil and gas industry. Ingersoll Rand certifies the distribution of its products in Iran through Havacaran, an Iranian company. The National Iranian Drilling Company (NIDC), a subsidiary of the state-owned National Iranian Oil Company (NIOC), states on its website that it uses Ingersoll Rand compression systems and air hoists. SATCO (Sameh Afzar Tajak Co.) is a private commercial company in Iran. SATCOidentifies Ingersoll Rand as one of seven “Principals” affiliated with SATCO for the sale of industrial tools. The nature of these operations brings into question whether the Islamic Revolutionary Guard Corps is using Ingersoll Rand equipment.
In a letter to Michael W. Lamach, the CEO of Ingersoll Rand, UANI President, Ambassador Mark D. Wallace, wrote: ”
We write also to call your attention to a very serious issue involving deficiencies in your company’s public filings, specifically, your company’s ongoing failure to disclose any of Ingersoll Rand’s activities in, and risks of doing business with, Iran. In the event Ingersoll Rand continues its business operations in Iran and fails to adequately disclose the risks of such business, UANI will pursue appropriate legal action against Ingersoll Rand, will call on the New York Stock Exchange to delist Ingersoll Rand and will assist the many Ingersoll Rand shareholders who oppose Ingersoll Rand’s activities in Iran.”
UANI questions the legality of Ingersoll Rand’s failure to fully disclose the extent of its business dealings in Iran. Such failures deprive investors of the transparency and accountability to which they are entitled. UANI, therefore, has called on Ingersoll Rand to disclose the full nature and extent of its activities in and the inherent risks of doing business in Iran.
Due to pressure from UANI, Caterpillar Inc., Huntsman Corporation, German reinsurance company Munich Re AG and Siemens AG among a few, have halted their business activities in Iran.
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