French vehicle manufacturer, Renault, plans to invest 10 billion dirhams ($1.04 billion) in Morocco to build an “industry ecosystem.”
Renault and component suppliers plan to invest $1 billion in Morocco
Morocco’s King Chairs in Rabat Launch Ceremony of New Renault Group’s Project https://t.co/2hHUe0eczf #Morocco— Morocco News Network (@beznas) April 8, 2016
According to Moulay Hafid Elalamy, Morocco’s Minister for Industry, the ecosystem and its new plants will raise Renault’s local sourcing of components to 65 percent from 32 percent and are projected to generate 20 billion dirhams in revenues.
“We have signed this agreement that is expected to transform Morocco’s automotive industry. Exports from Morocco’s motor industry generate about 50 billion dirhams per year surpassing all other sectors of the country,” he added.
Renault already has two car plants in the kingdom, one in Tangiers for producing cars and body pressings for export and another assembly plant in Casablanca.
The North African kingdom has in recent years attracted a number of big auto and aerospace investors in recent years, including Delphi, Bombardier and Eaton Corp.
Morocco has managed to avoid a big drop in foreign investments in the wake of the global financial crisis and the Arab Spring uprisings of 2011.