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Wheel hub: Tanger Automotive City has expanded further in 2020


AmightyMoroccan manufacturingboost


AUTOMOTIVE AND AERONAUTICS MANUFACTURERS HAVE PILED INTO THE TANGER MED PLATFORM. ALEX IRWIN-HUNT REPORTS


come from the automotive sector. As a key pillar of the country’s industri- alisation, the sector was Morocco’s leading exporter in 2019, generating revenues of $10.5bn. Central to the development of


M


the industry has been the influx of foreign original equipment manu- facturers (OEMs) and their suppliers. Renault broke ground on Africa’s largest car plant located in Tanger Med Zones (TMZ) in 2012, adding to its existing plant in Casablanca, and laying the foundations for inbound automotive investment. “The installation of Renault in Tangier was followed by the arrival


106


uch of the drive behind Morocco’s development over the past decade has


of its main suppliers, in order to take advantage of geographical prox- imity and the advantages and incen- tives of Moroccan industrial policy,” says Aziz Jaid, an economist in the North Africa office of the UN’s Economic Commission for Africa. The Renault plant produced


more than 400,000 vehicles in 2019, 90% of which were exported to 74 different markets (see interview on page 104). Another major French OEM,


PSA Group, has a factory in Kenitra, a city located 50km up the coast from Morocco’s capital, Rabat, which has added to the existing draw of the country to component manufacturers.


Supplier stream Out of the 170 Tier 1 and Tier 2 auto- motive suppliers based in Morocco, 90 are located in Tangier, including the likes of Japan-based Yazaki, Ireland-based Delphi Technologies and Germany-based Schlemmer.


“Morocco’s value proposition


for the automotive industry has rapidly evolved over a short space of time, with the special economic zones offering favourable tax treat- ment and various other incentives, such as land and infrastructure,” says Alex Ash, a global director of location strategy and incentives at site selection consultancy Hickey and Associates. US-based Lear Corporation, a


leading manufacturer and distribu- tor of automotive interior equip- ment with presence in 36 countries and operating in TMZ since 2001, opened a new plant covering 7 hec- tares in Tanger Automotive City in 2020. To assist the US company in employing its expected 3000 people on site, Morocco’s automotive train- ing centre IFMIA, which has sites in Tangier, Casablanca and Kenitra, helps to prepare workers for their operations. “IFMIA has played a central role in vocational training in the sector,


www.fDiIntelligence.com December 2020/January 2021


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