Renault boosts investment in its Moroccan operations image

Renault plans to increase the production of car parts in Morocco, investing around 1 billion dollars in this direction.

Renault signed an agreement with the Moroccan government for a 10-billion-dirham investment (around 1 billion dollars) to build an “industry ecosystem” which will generate 50,000 new jobs and will increase the local production of components, Morocco’s industry minister, Moulay Hafid Elalamy, announced. According to the minister, the new financial boost will help raise Renault’s local sourcing of components to 65 percent from 32 percent and is expected to generate 20 billion dirhams in revenues in the coming years.

“Renault ecosystem means that around Renault plants in Tangier and Casablanca, many other companies are coming to invest and make the parts that will shape a Renault car,” he added. Renault’s Tangier facility – which is automaker’s biggest site in North Africa, with a maximum output of 400,000 cars, builds Dokker, Lodgy and Sandero models under the Dacia brand, while the second plant in Casablanca makes Logan and Sandero models, under the same badge.

Renault is not the only French carmaker who heavily invests in Morocco. Last year, PSA Peugeot Citroen announced it would build a 557-million-euro assembly facility in the country to produce small and subcompact models for Africa and the Middle East starting from 2019. Initial capacity would be of 90,000 units, with the factory able to increase output to 200,000 if positive conditions are met.

Via Reuters