As a result of changing in market demand to buy metallic coated cars instead of solid coated cars, it was decided to establish a new top coat line in Iran Khodro company in order to produce Peugeot 206 and Samand In 1999. TAM was chosen as the general contractor of project in order to construct the paintshop within 27 months implementing latest technology to achieve Iran khodro's environmental and capacity targets .
Considering the shortage of land in Iran Khodro factory, it was decided to design a multi level layout in a land 105 meters long by 85 meters wide. Layout was designed in 4 main floors ( +0.00 , +6.8 ,+17.5, +25.00 meter) with a total area of 33000 sq.m .It is not only the biggest Paint shop in the middle east but also the highest one. TAM strategy in this project was to acquire know how and localize it. it strengthen TAM in such a way that fabricated more than 80% of the equipment in Iran which was the maximum localization in that era. After completion of this project TAM become a new competitor in the automotive paint shops industry.