Renault Opens New Plant in Morocco image

The French firm Renault has recently opened the biggest car factory in Melloussa, Morocco, North Africa.

The plant will produce low-cost cars under the Dacia brand for emerging markets, and about 10% of the production will be sold locally. At the beginning, 2,000 local workers will be employed, but the company plans to triple production until 2015, until 6,000 employees and 35,000 jobs indirectly. Renault and Dacia brands account for more than 37% of new-car sales in Morocco.

Although Morocco’s economy has been expanded during the last years thanks to free trade deals with international partners, unemployment is still a problem, especially among graduates. That is why Renault tries to develop northern Morocco, by investing $1.5 billion in the factory, which will produce 147,000 units annually.

“We know that Renault was about to abandon this investment and the Moroccan state gave it huge advantages to convince Renault to continue, including tax incentives,” told economist Fouad Abdelmoumi.

Renault already has a plant in Casablanca, where Kangoo, Logan and Sandero are being built, the factory operating at capacity. There are other companies, such as Ford and other Chinese and Indian manufacturers, who plan to open up factories near Renault plant.