A new major Renault project in Morocco; 10 billion dirhams, 50,000 jobs

A new major Renault project in Morocco; a global supply platform is set up, providing :
• 10 billion dirhams investment
• 50 000 new jobs
• 20 billion dirhams a year in new parts purchases
• 65% of local integration

A partnership was concluded on Friday 08 April 2016, under the effective presidency of His Majesty King Mohammed VI, May God Assist, between the Moroccan government and the French group Renault to launch a new project of the group in Morocco.

The project will unite a network of suppliers around the manufacturer to form an efficient ecosystem that will add value to the sector and promote a better integration of the automotive value chain. The newly structured ecosystem will constitute a world-class sourcing platform supplying the Tangier site, as well as other sites in the world.

The new Renault project, with a total investment of 10 billion dirhams committed by Renault and its suppliers, will enable the creation of 50.000 permanent qualified jobs (three folds the present staff of the Group), in line with Morocco’s choice to invest in human capital.

The launching of the new project will create an additional turnover of 20 billion dirhams a year, generated by the purchase of locally manufactured parts. The amount relating to purchase of equipment made in Morocco will thus increase three folds.

As for the local integration rate, it will increase to 65% (double its current value) and will enable automotive industry to anchor even deeper in the country’s economic fabric.

The Minister of Industry, Trade, Investment and the Digital Economy, M. Moulay Hafid Elalamy, stated that the launch of the Renault ecosystem constitutes a turning point for industry in Morocco as this new success, increases the industrial footprint of the manufacturer in the Kingdom and expresses its strategic commitment to the industrial acceleration of the country.

He added that this new success is mainly due to the many advantages of Morocco, in particular, its lasting political, social and economic stability, providing operators with an economic and institutional environment favourable to the expansion of their activities.

By enhancing local integration, the project further establishes this exceptionally dynamic sector that was only launched 10 years ago. Buoyed by its numerous structural assets and with a particularly attractive value delivery, the automotive sector has indeed experienced an outstanding growth that has greatly contributed to the industrial acceleration of the Kingdom.

Backed by the installation of the first and second manufacturer, this remarkable growth is also supported by the current structuration of the sector into effective ecosystems, which are valuable catalysts for upselling, hence establishing a new collaborative dynamic and an improved and purposeful articulation of production.

The launch of the Renault ecosystem is a substantial illustration of this new partnership between large companies and SMEs, a dynamics bringing substantial benefits for both leaders and their suppliers.

The ecosystem provides Renault, as a business leader, with a complete supply logistics chain and increases its competitiveness and reactivity; it also give SMEs and VSEs more visibility on their order books and therefore their development perspectives.

The new Renault project in Morocco becomes another success story in addition to many others recorded in the domestic industry; it shows the intensification of the strategic partnership concluded with Renault as it restates today the choice of Morocco as a destination of choice.