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Rabat – Morocco has signed eight agreements worth MAD 1.7 billion ($175.33 million) with several car parts suppliers to boost the automotive sector.
The agreements seek to create 12,000 new jobs, the Ministry of Industry said on Thursday.
Minister of Industry and Trade Ryad Mezzour signed the agreements with international car equipment manufacturers, including Yazaki, Sumitomo, Lear, Stahschmidt, and TE Connectivity.
The agreements are part of developing the “deep integration and qualitative upgrading of the wiring system of electric cars,” the ministry of industry said.
Out of the eight deals, Morocco signed three agreements with Yazaki Group to establish a factory for the production of electrical wires for cars in Meknes.
The agreements also include expansion projects of Yazaki Group’s units in Kenitra and Tangiers.
The Yazaki Group agreement with Morocco amounts to MAD 751 million ($77.49 million). The projects seek to create 6,300 jobs.
In addition, Morocco signed an agreement with Sumitomo Group to expand its unit for the production of electrical cable belts in Casablanca with an investment worth MAD 146 million ($15 million). The project aims to create 2,000 jobs.
Lear Group and Morocco signed two agreements, covering the establishment of two factories.
One of the factories in Tangier will be in charge of manufacturing cable bundle stations and electrical connectors.
The second factory will produce electric bundles and cables for cars.
Both projects seek to create 2,162 job opportunities.
The Industry Ministry also concluded an investment project which is covering the construction of a molding and connector assembly unit by TE Connectivity in Tangier.
The two parties will invest a total of MAD 202 million ($20.86 million), creating 350 jobs.
The last agreement was signed with Stahschmidst Tangiers, which concerns a plant for the production of Bowden cables and locking systems.
The budget for the project covers MAD 107 million ($11 million), with an objective to create 1,075 jobs.
Mezzour said the projects are “a strong indication of the flexibility of the national platform for the automotive sector.”
The minister emphasized that the sector managed to maintain its competitiveness and confidence despite the difficult global circumstances.
“We worked with our partners to achieve this goal on an industrial system for technological professions that require high competencies,” the minister said.
The automotive industry is one of the sectors that contribute to Morocco’s economy.
The Oxford Business Group estimated that the auto industry accounted for 19% of Morocco’s GDP in 2019.
The group forecasts that the industry’s contribution to Morocco’s GDP will increase to 24% by this year.
