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Casablanca — Japanese automotive supplier JTEKT has signed a share transfer agreement that includes its Moroccan subsidiary as part of a planned sale of several operations serving the European automotive market.
The company announced on May 27 that it had reached an agreement with LEO III.-VV25-B SAS, a company under the German investment group DUBAG Group, for the transfer of seven consolidated subsidiaries. The move follows a basic agreement disclosed in February and still requires approval from relevant regulatory authorities before completion.
Among the companies included in the transaction is JTEKT Automotive Morocco S.A.S., located in Tangier. The Moroccan site is listed alongside operations in France, the Czech Republic, Belgium and the United States.
JTEKT said the sale is part of its second medium-term management plan covering the 2024 to 2026 fiscal years. The company stated that it has been reorganizing and integrating parts of its European business while seeking to improve profitability and return the region to the black.
The Tangier factory was established in Tanger Automotive City and represents JTEKT’s first industrial platform in Africa and the Middle East. Construction began after the company confirmed its investment in Morocco in 2017. The project was designed to supply international car manufacturers operating in Morocco, including Renault and PSA, while also serving export markets.
According to company information, the Moroccan operation manufactures electric power steering systems and steering columns. When the project was launched, JTEKT announced a target annual production capacity of 230,000 electric power steering units. The investment was valued at MAD 220 million ($23.97 million) and the facility covers around 11,300 square meters inside Tanger Automotive City.
JTEKT Automotive Morocco forms part of the group’s automotive operations, which produce steering, driveline and transmission-related components for major vehicle manufacturers. The company said it will continue pursuing business restructuring and adapting its operations to market conditions in different regions.
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