Automaker PSA Peugeot Citroën will build a new assembly plant in Morocco
The French car automaker PSA Peugeot Citroën will build a new assembly plant in Morocco to build cars and engines for markets in Africa and the Middle East. The French automaker will invest €557 million ($632 million) in Morocco to build the new facility, which will begin production in 2019.
In this aspect, PSA Peugeot Citroën CEO and Moroccan Government officials signed an agreement for a new plant that will be located in Ameur Seflia, in the Kenitra region of Morocco.
The investment of the French leading carmaker PSA Peugeot Citroen in Morocco highlights the Kingdom's successful path to join the club of emerging countries. This is a very important for the national economy and it is an outcome of the climate of stability and security in Morocco and the improvement of investment indices. Moreover, the presence of a second major manufacturer in Morocco will boost the entire industry of car manufacture and make it profitable to make more parts within the country.
Given its world-class infrastructure notably in terms of car production and export logistics in addition to the quality of training of human resources specializing in automobile industry, Morocco was chosen to host the new production plant of French car manufacturer PSA Peugeot Citroen.
Thanks to the level of its infrastructure and training, Morocco is well-paced to attract enterprises that are willing to bolster their exports to African markets, stated the CEO Tavares at a press conference prior to the signing of the agreement to set up a PSA Peugeot Citroen factory in the Kingdom.
PSA will also be keen to more deeply tap the North African market which is seen as growing strongly over the next few years.
The location chosen places the site in the Atlantic Free Zone (AFZ) which is run by local development company Medz. The site is said to be well connected for both road and train links, the latter offering the opportunity for moving completed vehicles to Casablanca port for export out of the country.
PSA Peugeot Citroën will build B- and C-segment vehicles, as well as engines for the local market and other countries in the region. The facility will have an initial production capacity of 90,000 vehicles and engines, but will be able to build 200,000 vehicles and engines when it reaches full capacity. The new factory will also house a research and development center employing 1,500 engineers and technicians. The automaker estimates it will localize 60 percent of components at the beginning of production, with the rate expected to reach 80 percent later on. The new plant in Morocco is part of PSA's plans to sell 1 million vehicles in Africa and the Middle East by 2025. The Kingdom of Morocco attaches utmost importance to the automobile manufacturing sector in the industrial acceleration plan and aims to bring production from 400,000 cars in 2014 to 800,000 in 2020.