Investment Flow Continues
15 May 2012
Read by 1589 persons
The completion of the Renault Tanger-Med industrial complex, located on a 314-hectare site, has had a very significant knock-on effect on the growth of the automotive equipment industry in Morocco.
Indeed, while Morocco already had an industrial base in this area, it was notably with the launch of Renault's industrial project in Tangier that the largest international automotive suppliers really started to take an interest in Morocco, which they consider an important investment destination. And as the Renault project takes shape, investments are starting to pour in and foreign companies from various countries are setting up in Morocco, particularly in Tangier around this important plant. This makes this complex a major component for the emergence of an integrated automotive industry in Morocco. It should be remembered that Renault Tanger-Med has already started production in 2012. It will eventually be able to produce 400,000 units per year, 90% of which will be destined for export.
This investment, of the order of one billion euros, will create 36,000 direct and indirect jobs at the start.
This dynamic in the automotive equipment industry in Morocco has also been fostered by the national strategy for industrial development, embodied by the National Pact for Industrial Emergence (PNEI). In fact, the latter has identified the automotive sector as a growth driver for the Moroccan economy, given its potential for job creation. Consequently, this has allowed the automotive equipment industry to experience growth in recent years, namely Tier 2 and 3 suppliers and the installation of specialty assemblers. Indeed, at the end of two years of implementing this strategy, the results are encouraging. These have had a very positive impact on the sector's performance, resulting in an additional investment commitment of 14 billion DH and the creation of 8,300 additional jobs in the 2009-2010 period, representing 50% of the additional jobs generated by global trades in Morocco. The sector's exports have also shown an upward trend since 2005, reaching 12 billion dirhams in 2009 and 18.3 billion in 2010, representing an average growth of 20.3% over the 2005-2010 period. This trend was confirmed for the year 2011 with an increase of 21.2% compared to 2010. The automotive equipment industry comprises more than 160 specialized companies.
Similarly, a plan has been put in place to promote and market the "Morocco Offer" to target markets, and significant progress has been made in the implementation of the Integrated Industrial Platforms (IIPs) of "Kenitra Automotive City" and Tangier Automotive City (completion of a first phase of 47 ha by the end of 2012), as well as the acceleration of the Renault project, which effectively started in February 2012. Moreover, if the automotive sector has been chosen as a growth driver for the national economy as part of the Emergence plan, it is because the automotive industry remains one of the sectors that has distinguished itself by double-digit annual growth rates in investment and exports.
The development strategy focuses on the establishment of Tier 2 and 3 equipment manufacturers in Morocco, the establishment of specialty assembly (heavy goods vehicles, buses, coaches, bodywork and other niche specialties), and the attraction of a second major manufacturer in the long term.
The objective is to position Morocco as a platform conducive to the development of the automotive industry through the implementation of a Moroccan automotive offer (suppliers, manufacturers, specialty manufacturers) based on an attractive and incentive framework, dedicated infrastructure within the framework of Integrated Industrial Platforms, a quality training plan, and a targeted communication and promotion program for the sector, focused on Morocco's priority trades (wiring, stamping, surface treatment, automobile and specialty construction...). The estimated impact is approximately 12 billion dirhams of additional GDP and would translate into the creation of approximately 70,000 new jobs in the entire sector by 2015.
Taking into account this major development potential, the Moroccan state is committed to putting in place concrete measures to enable the country to become a future industrial base for the international automotive sector. Given this dynamic in the sector, it should become the leading exporting industrial sector from 2012-2013, promising to surpass that of textiles and clothing. However, the emergence of a strong and competitive national automotive industry would require the multiplication and continuation of efforts to address a number of challenges and issues that hinder the sector's positive momentum. Among these challenges, it is necessary to mention the competitiveness of the logistics sector and the training of qualified manpower. In contrast, opportunities are available to the sector, particularly within the framework of the free trade agreement with Arab countries.
Apart from the recent underperformance in the Egyptian market, linked to the political crisis experienced by that country at the beginning of 2011, Moroccan exports of passenger cars to this market have increased significantly since the entry into force of this agreement. Similarly, the African market holds major export opportunities.
Atlantic Free Zone is progressing well
AFZ is one of the first new generation integrated industrial platforms that will target the industrial sectors, including automotive equipment.
Planned on a total area of 345 ha, the AFZ project aims to ultimately integrate the automotive industrial chain in the region and create nearly 30,000 jobs, including 20,000 direct jobs.
This project is progressing well. This progress has concerned both the free zone and the free area, according to Medz, a subsidiary of CDG Développement, developer and manager of the said project. Indeed, it is specified that 6 plots have already been allocated in the free zone, on an area of 16.8 ha. This translates into projected investments of around one billion DH and the creation of 9,600 jobs. The sectors concerned are, among others, automotive wiring and automotive windshields. Similarly, 5 plots have been allocated on an area of 15,600 m² in the free area. This commits 55 million DH in investments and will generate 145 jobs. The sectors concerned are wiring, industrial joinery, plastic extrusion, etc.
Lahcen Oudoud.
Lematin.ma
Published May 15, 2012.
Posted online May 15, 2012.
Indeed, while Morocco already had an industrial base in this area, it was notably with the launch of Renault's industrial project in Tangier that the largest international automotive suppliers really started to take an interest in Morocco, which they consider an important investment destination. And as the Renault project takes shape, investments are starting to pour in and foreign companies from various countries are setting up in Morocco, particularly in Tangier around this important plant. This makes this complex a major component for the emergence of an integrated automotive industry in Morocco. It should be remembered that Renault Tanger-Med has already started production in 2012. It will eventually be able to produce 400,000 units per year, 90% of which will be destined for export.
This investment, of the order of one billion euros, will create 36,000 direct and indirect jobs at the start.
This dynamic in the automotive equipment industry in Morocco has also been fostered by the national strategy for industrial development, embodied by the National Pact for Industrial Emergence (PNEI). In fact, the latter has identified the automotive sector as a growth driver for the Moroccan economy, given its potential for job creation. Consequently, this has allowed the automotive equipment industry to experience growth in recent years, namely Tier 2 and 3 suppliers and the installation of specialty assemblers. Indeed, at the end of two years of implementing this strategy, the results are encouraging. These have had a very positive impact on the sector's performance, resulting in an additional investment commitment of 14 billion DH and the creation of 8,300 additional jobs in the 2009-2010 period, representing 50% of the additional jobs generated by global trades in Morocco. The sector's exports have also shown an upward trend since 2005, reaching 12 billion dirhams in 2009 and 18.3 billion in 2010, representing an average growth of 20.3% over the 2005-2010 period. This trend was confirmed for the year 2011 with an increase of 21.2% compared to 2010. The automotive equipment industry comprises more than 160 specialized companies.
Similarly, a plan has been put in place to promote and market the "Morocco Offer" to target markets, and significant progress has been made in the implementation of the Integrated Industrial Platforms (IIPs) of "Kenitra Automotive City" and Tangier Automotive City (completion of a first phase of 47 ha by the end of 2012), as well as the acceleration of the Renault project, which effectively started in February 2012. Moreover, if the automotive sector has been chosen as a growth driver for the national economy as part of the Emergence plan, it is because the automotive industry remains one of the sectors that has distinguished itself by double-digit annual growth rates in investment and exports.
The development strategy focuses on the establishment of Tier 2 and 3 equipment manufacturers in Morocco, the establishment of specialty assembly (heavy goods vehicles, buses, coaches, bodywork and other niche specialties), and the attraction of a second major manufacturer in the long term.
The objective is to position Morocco as a platform conducive to the development of the automotive industry through the implementation of a Moroccan automotive offer (suppliers, manufacturers, specialty manufacturers) based on an attractive and incentive framework, dedicated infrastructure within the framework of Integrated Industrial Platforms, a quality training plan, and a targeted communication and promotion program for the sector, focused on Morocco's priority trades (wiring, stamping, surface treatment, automobile and specialty construction...). The estimated impact is approximately 12 billion dirhams of additional GDP and would translate into the creation of approximately 70,000 new jobs in the entire sector by 2015.
Taking into account this major development potential, the Moroccan state is committed to putting in place concrete measures to enable the country to become a future industrial base for the international automotive sector. Given this dynamic in the sector, it should become the leading exporting industrial sector from 2012-2013, promising to surpass that of textiles and clothing. However, the emergence of a strong and competitive national automotive industry would require the multiplication and continuation of efforts to address a number of challenges and issues that hinder the sector's positive momentum. Among these challenges, it is necessary to mention the competitiveness of the logistics sector and the training of qualified manpower. In contrast, opportunities are available to the sector, particularly within the framework of the free trade agreement with Arab countries.
Apart from the recent underperformance in the Egyptian market, linked to the political crisis experienced by that country at the beginning of 2011, Moroccan exports of passenger cars to this market have increased significantly since the entry into force of this agreement. Similarly, the African market holds major export opportunities.
Atlantic Free Zone is progressing well
AFZ is one of the first new generation integrated industrial platforms that will target the industrial sectors, including automotive equipment.
Planned on a total area of 345 ha, the AFZ project aims to ultimately integrate the automotive industrial chain in the region and create nearly 30,000 jobs, including 20,000 direct jobs.
This project is progressing well. This progress has concerned both the free zone and the free area, according to Medz, a subsidiary of CDG Développement, developer and manager of the said project. Indeed, it is specified that 6 plots have already been allocated in the free zone, on an area of 16.8 ha. This translates into projected investments of around one billion DH and the creation of 9,600 jobs. The sectors concerned are, among others, automotive wiring and automotive windshields. Similarly, 5 plots have been allocated on an area of 15,600 m² in the free area. This commits 55 million DH in investments and will generate 145 jobs. The sectors concerned are wiring, industrial joinery, plastic extrusion, etc.
Lahcen Oudoud.
Lematin.ma
Published May 15, 2012.
Posted online May 15, 2012.
