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This time there was no controversy. If the opening of the Renault plant in Tangier had led in 2012 to a political storm on the topic of offshoring, announcement, Friday, June 19th, the creation of a PSA plant in Kenitra, north of Rabat, Morocco, is better accepted.
“What PSA invest in Morocco, it is the group’s recovery of the sign and its healthier” even provide in unions choir group. On Twitter, the economy minister, Emmanuel Macron, welcomed the investment, which is “good for Morocco and France.”
initial capacity of 90,000 vehicles
Just out of the red, tricolor manufacturer has decided to prepare the future and to open, in 2019, a factory to serve Africa. The investment will be 557 million euros, knowing that 5% of this amount will be paid by the Caisse de dépôt et de gestion Morocco. Moreover, the land is made available to the manufacturer, who will launch earthworks in early 2016.
The initial production capacity of this site will be 90 000 vehicles, a quarter of that of the Renault plant in Tangiers. Depending on the demand, production will be increased to 200,000 vehicles by 2023, the ministry hopes of Moroccan industry. This site will also host an assembly workshop engines with a capacity of 90 000 units in the first instance, who will then be up to 200 000 units.
In all, ” are 4,500 direct jobs and 20,000 indirect jobs expected to be created “, Moulay Hafid ensures Elalamy, the Minister of Industry. In addition, 1,500 engineers and technicians jobs will be created by 2023, notably by PSA subcontractors on site.
To produce the best price, the manufacturer will build all first on very low wages (a tenth of the French salary) and a very low automation of its site. The plant will also benefit from tax and customs exemptions. And 80% of the plant output will be exported outside Morocco.
Be assertive on the global automotive map
Finally, PSA intends s’ supplies of components and parts to 60% on site at the opening and then increase the rate to 80% in the medium term. And taking advantage of the network of equipment that is installed with the arrival of Renault. “With both companies, more and more manufacturers will settle, creating critical mass and offering competitive prices” , Judge Carlos Tavares, Chief Executive of PSA.
“Long with a single manufacturer, we manage to attract as first-tier suppliers, confirmed by the Minister of Industry. Those rank two and three dared to invest for fear of dependence on a single payer. With both, the risk decreases. “
In addition to Renault and PSA, which has committed to buy for a billion of goods in the country against 360 million now, Ford announced in late May, it would triple its supply to Morocco in order to spend up to 600 million euros. Volkswagen is also in the process of considering the country to provide it.
This should allow Morocco to assert itself on the global automotive map. In 2014, industry sales in the country reached 5.5 billion euros, and in 2020, it targets 10 billion. This framework aims well with that of PSA in the Middle East Africa area. “We set ourselves the ambition to sell in this region one million vehicles in 2025, against 200,000 expected this year says Carlos Tavares. To do this, we must rely on the production sites in the heart of the markets, such as Morocco, Nigeria and perhaps tomorrow Algeria. “
Read also: Automotive: the Morocco consolidates its global base position
Two vehicles, still in development, should be assembled Morocco for the African market. They will be developed on the CMP (Common Modular Platform), the new platform that develops urban PSA with its partner Dongfeng and Chinese shareholder. By industrializing this platform, the group gives is the ability to accommodate the plant of Dongfeng vehicles or directly produce for the European market.
“This is technically possible, but it is not our wish, “ assures Carlos Tavares . French unions are not fooled. “When the Trnava plant [Slovakia] was launched in 2006, the goal was to sell production in Central Europe … but soon enough it became the basis of the low cost to the group. It will monitor what will be produced in Morocco “, Judge Franck Don, CFTC PSA
Read also:. Africa, new horizon of automobile manufacturers
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