Industrial Acceleration Plan 2014-2020: implementation of the powertrain ecosystem

The powertrain ecosystem was launched on Tuesday 23 February 2016 in Rabat, during a ceremony chaired by Mr. Moulay Hafid Elalamy, Minister of Industry, Trade, Investment and the Digital Economy and Mr. Mohammed Boussaid, Minister of Economy and Finance, in the presence of Mr. Mamoune Bouhdoud, Minister delegate in charge of small businesses and the integration of the informal sector.

To support the implementation of the powertrain ecosystem, a performance contract was signed on this occasion by Mr. Elalamy, Mr. Mohammed Boussaid and Mr. Hakim Abdelmoumen, President of the Moroccan Association for Automotive Industry and Trade (AMICA).

The powertrain ecosystem is concerned with activities such as cast moulding, aluminium casting, aluminium injection, aluminium refining and engine machining. Such an implementation will facilitate a faster development of the sector through the emergence of pioneer crafts, integration of the industry sector and attracting new investments.

This ecosystem will eventually create 10,000 new direct high added value manufacturing jobs, generate additional revenue of over 6.5 billion dirhams and a total investment of nearly 6.5 billion dirhams, thus increasing by 25 points the integration rate of the « Powertrain Automobile » through the development of local sourcing.

Speaking on this occasion, Mr. Elalamy noted that the implementation of the Powertrain ecosystem will help achieve an integration rate of 80% and complete the automobile value chain through the emergence of new high added value trades and the manufacturing of new parts (chassis and transmission, engine and gearbox), as well as the development of new technologies (Aluminium casting or injection molding, metal scrap casting).

The Minister noted that the deployment of this new ecosystem is an outstanding step forward for the Moroccan automotive industry, as it constitutes a true lever for the growth and industrialisation of the sector, hence enabling Morocco to further establish itself as a destination of choice for automotive industry.

The Minister further added that the “Powertrain ” sector has an even greater potential considering the arrival of PSA that will produce 200.000 engines a year, bringing in its wake new suppliers for automotive components in addition to the a strong demand coming from the Iberian Peninsula where 2,3 million cars are produced every year.

To promote the development of this sector, businesses will benefit from appropriate support, thanks to the Industrial Development and Investment Fund (FDII), financing up to 30% of the overall investment, providing easier access to real estate (15 ha of land rental for the sector) and supporting competitiveness of Very Small, Small and Medium-sized Enterprises and self-entrepreneurs.

This support will also include the implementation of an integrated training plan, adapted to the needs of the sector, a financial support scheme for engine laboratories and assistance for the implementation of the new self-entrepreneur status for scrap metal collection activities.
Manufacturers in the sector undertake to achieve the above objectives under the signed performance contracts.
About the automotive sector:
- 1st exports generating sector: 50 billion dirhams of turnover from exports in 2015.
- 36,500 new jobs created between 2009 and 2014 (+ 12.4% on average annually).
- Morocco: ranking top exporter in North Africa and second of continent.
- World majors have trusted Morocco as a destination: Renault, PSA Peugeot, Delphi, Yazaki, Leoni, Valeo, Lear…
- With the launching of the PSA Peugeot project, Morocco ensures its entry into the closed circle of Engine Manufacturers and Exporters in the world.
- Ambitious goals for the sector by 2020:
• 100 billion dirhams of turnover from exports
• An integration rate of 80%
• Manufacturing and assembly of 800.000 vehicles
- 4 ecosystems have been launched in the automotive sector in 2014; namely “automotive wiring”, “vehicle interior and seats”, “Metal pressing” and “Automotive batteries”. The implementation of these first four ecosystems will, by 2020, create 56,000 new jobs, provide a 2.5-fold increase in exports and increase the local integration rate by 20 points.