Morocco secures $1.45bn worth of automobile deals

The Kingdom of Morocco has signed deals for 26 auto industry projects worth a total $1.45 billion, as part of efforts position it as an international hub for the sector in Africa, a government statement said on Monday.

The contracts include six agreements with French auto giant Renault to expand an “industry ecosystem” allowing the firm to increase local sourcing of car components to 55 percent.

Renault already operates a large factory in the northern Moroccan city of Tangiers that opened in 2012, and an older assembly plant in Casablanca as well.

Some 13 of the new projects are planned as part of a manufacturing hub linked to a PSA Peugeot Citroen factory under construction in Kenitra, north of the capital, Rabat. The plant is due to open in 2019 with initial capacity of 90,000 vehicles a year.

Other projects include deals with companies from France, Spain, Italy, China, South Korea, Japan and the United States. Eleven of the companies will be operating in Morocco for the first time.

According to the government, all these projects are expected to create more than 11,500 jobs.

A memorandum of understanding with Chinese automaker BYD has also been reached to build an electric car plant near Tangier that is expected to create 2,500 jobs.

Over the last few years, the kingdom has attracted a number of big auto and aerospace investors.

This post first appeared HERE

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