French automobile company Peugeot Societe Anonyme will open a car factory in Kenitra, Morocco valued at MAD 6 billion. Morocco is already the biggest car producer in Africa.
Rabat – French car company Peugeot Societe Anonyme (PSA) is set to open a factory in Kenitra, a city near Rabat, valued at MAD 6 billion ($620 million).
PSA manufactures major car brands including Citroen, Peugeot and DS Automobiles.
The exact opening date of the factory is not yet confirmed, but according to Moroccan newspaper L’Economiste, Carlos Tavares, the director of PSA will be coming to Morocco soon for the inauguration.
PSA is currently recruiting for the factory to ensure it is 100% operational on opening day.
PSA has been present in Morocco since 2017, when it opened a pilot import center in Casablanca for Peugeot, Citroen, DS and Opal cars, as well as a research and development center.
PSA will now also build its cars in Morocco. The first car is due to be assembled in July.
The Kenitra factory will produce smaller vehicles like the latest Peugeot 208. The company is aiming to produce 20 000 cars in 2019. Next year, it will produce 100 000 cars, and in the long run, it has a target production of up to 200 000 cars per year.
The cars are mainly destined for export, to Africa but also to the Middle East and Turkey.
Morocco is already the largest automobile producer in Africa. Between 2012 and 2018, it increased its production from 50 000 cars to 400 000 cars per year, after Renault opened a factory in Tangier. Chinese company BYD also has planned to open a factory in Morocco.
Morocco aims to produce 1 millions cars a year by 2022. Once the new Kenitra factory is up and running Morocco’s production capacity will already reach 700 000 cars a year (500 000 by Renault and 200 000 by PSA).