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Rabat – EBRD has granted a €16 million loan to Varroc Lighting Systems Morocco, the Moroccan subsidiary of India’s Varroc company.
The European Bank for Reconstruction and Development (EBRD) published a statement Thursday, September 6, saying its “financing will allow Varroc Engineering to supply the Tangier Renault factory and the Peugeot PSA plant in Kenitra, as well as to set up a research and development centre.”
The statement asserted, “This is in line with the government’s efforts to increase the rate of regional integration to 60 per cent by 2020.”
PSA Group’s Kenitra plant announced Tuesday, September 4, that it will double its annual production capacity to 200,000 in 2020 at a cost of €560 million.
Morocco and PSA Group set ambitious objectives for automotive production including the local integration rate of 60 percent in the short term and 80 percent in the long term.
EBRD’s loan is set to create 100 jobs between 2018 and 2024. Hundreds of young people will also be trained.
“Historically, the EBRD places significant importance on the automotive sector and provides its customers with an integrated and comprehensive financing and technical support package. The automotive industry in Morocco is now able to benefit from this offer,” said Adil Chikhi, director of EBRD’s corporate activities in Morocco and Tunisia, in a statement published by the state-owned news agency (MAP) Thursday, September 6.
Since it has started working in Morocco in 2012, EBRD has invested over €1.5 billion in 41 projects in the North African country. The bank also provided more than 380 local companies with technical assistance.
EBRD focuses on “supporting sustainable energy, direct and indirect financing of private enterprises, and promoting infrastructure reform” in Morocco.
Varroc Lighting Systems is a global automotive supplier and manufacturer of external lighting systems for cars. In December 11, 2017, the company announced it would establish a manufacturing and product development factory in Tangier’s economic free zone.
“The Morocco facility will support both local Moroccan growth as well as our customers in southern Europe,” said Stephane Vedie, CEO of Varroc Lighting Systems.
