PSA Peugeot Citroën and the Kingdom of Morocco signed an agreement for the implementation of an industrial complex
PSA Peugeot Citroën is setting up in Morocco:
• An industrial investment of 6 billion dirhams in Morocco
• Vehicle production to start in 2019
• Eventual production of 200,000 vehicles and 200,000 engines
• An integration rate of 60% at the start and 80% eventually
Under the Chairmanship of His Majesty the King Mohammed VI, the Minister of Industry, Trade, Investment and Digital Economy, Mr. Moulay Hafid Elalamy, and the Chairman of the Managing Board of PSA Peugeot Citroën, Carlos Tavares, signed at the Royal Palace in Rabat an agreement that provides for the construction of an industrial complex in the Commune of Ameur Seflia in the Region of Gharb Cherarda Beni Hssen.
This industrial unit will begin producing B and C segment engines and vehicles as from 2019, in order to meet the needs of the region and of Moroccan customers and will eventually reach a production of 200,000 vehicles and 200,000 engines.
This plan will leverage the competitive supplier base in Morocco, which will benefit from the plant's gradual ramp-up of production, as well as the development of engineering operations required for the project. With a local content rate of 60% at the launch date ultimately rising to 80%, local automotive equipment suppliers are set to enjoy very sharp business growth. The performance of local automotive equipment suppliers will enable them to experience a very significant business growth and generate a supply for export of automobile components and parts worth 1 billion euros per year.
The project will create 4,500 direct jobs and 20,000 indirect jobs in the areas of component supply and engineering. The project will contribute, in this respect, to the development of a Research and Development sector finally reaching 1,500 senior engineers and technicians.
On the occasion of signing the agreement, Mr. Moulay Hafid Elalamy, Minister of Industry, Trade, Investment and Digital Economy of the Kingdom of Morocco declared: “This industrial investment demonstrates yet again the relevance of the implemented policy, which promotes investments by leading global manufacturers, making the Kingdom the hub of automobile development of the African continent, thanks to the existence of a true automotive ecosystem, bringing together all the necessary skills in manufacturing, engineering and procurement”.
Mr Carlos Tavares, CEO, stressed: “Africa and the Middle East are historical markets for PSA and this region must become a lever of profitable internationalization of our 'Back in the Race' programme. This agreement signed with the Kingdom of Morocco will allow us to have the production capacity at the heart of the region to achieve our ambition of selling one million vehicles there in 2025”.