The group is pursuing plans for a production unit in Kenitra and a fairing technical and engineering center.
Rabat – US automotive supplier Adient is set to establish a new production unit for fairings in the industrial zone of Kenitra, western Morocco.
Morocco’s Ministry of Industry signed a Memorandum of Understanding with Adient on Monday in Rabat to set up the project for a budget of $18.23 million.
The project will cover an area of 24,5000 square meters and seeks to generate 1,600 jobs.
The new Adient project also aims for an export turnover of €60 million to serve 750,000 vehicles.
The agreement that Minister of Trade Moulay Hafid Elalamy and the Executive Vice President EMEA of Adient Michel Berhelin signed also provides for the launch of a supplier ecosystem that seeks to ensure the development of the automotive value chain in Morocco.
Both parties also emphasized that the new project confirms Adient’s interest in locating new activities to Morocco, including the production of vehicle headrests and armrests.
In addition to the production unit in Kenitra, Adient also seeks to create a fairing technical and engineering center in Morocco for product development and design. The center will be the first of its kind in Morocco and aims to generate 50 engineering jobs.
Elalamy welcomed the projects, saying that the investment of the US automotive company “attests to the confidence shown by renowned investors in Morocco, which is now positioned as a platform for the production and export of equipment and motor vehicles.”
He said that the major project will also reinforce the integration and competitiveness of the automotive sector in Morocco.
Berhelin also emphasized the importance of the Adient project in Morocco, saying that the company is grateful to Morocco for opening its doors.
“This agreement will promote our ambitious expansion of production in seat covers and in the development of associated technical know-how. Morocco, in addition to its favorable geographical location, has a dynamic workforce, having benefited from quality training,” he said.
Adient opened its first factory in Morocco in 2018 in the Atlantic Free Zone (AFZ). The project covers an area of 8,500 square meters and required an investment of MAD 150 million ($16.7 million). The project employs 245 people.
The factory was the first subsidiary of the Adient group in North Africa. It specializes in the lamination of fabrics for automotive seats and supplies automotive companies such as Renaut, PSA, Opel, BMW, and Nissan.
Morocco aims to position itself as a regional leader in the automotive sector.
A recent study by French economist Henri-Louis Vedie shared ambitious predictions regarding the automotive sector in Morocco.
In November, the study said Morocco’s automotive sector will have the capacity to produce 700,000 to one million vehicles per year.
The report also underlined Morocco’s potential for growth, emphasizing that the country is already a continental leader in the sector.