Japanese JTEKT Car Component Manufacturer to Set up Factory in Tangier

Leading Japanese car part maker, JTEKT, will set up a plant worth €15 million in Tangier, an investment that will further bolster the automotive ecosystem in the country.

The factory is scheduled to start producing car steering systems and drive parts in 2018, the Tanger-Med Port announced in a statement.

The plant, to be built on an area of 6.5 hectares at the Tangier Automative City Zone, will help meet the growing demands by car makers in the country, added the statement.

The manufacturing facility in Tangier named “JTEKT AUTOMOTIVE MOROCCO S.A.S.” will respond to the growth expectation of automobile industry in Morocco, the Japanese group said, adding that JAMO will start manufacturing of Electric Power Steering systems (EPS) to respond swiftly and adequately to the customer requirements in Morocco.

Morocco’s proximity to the European market, modern infrastructures, free trade zones, qualified cheap manpower, open economy and stability have all contributed to making Morocco a regional car industry hub attracting investments by automotive giants such as Renault and Peugeot in addition to world class car part manufacturers.

The Tangier Renault plant, achieved for a total cost of €1.6 billion, started operating in 2012 and hit a production level of 345,000 cars in 2016 up from 229,000 cars in 2015. Today, 10% of total cars sold by Renault in the globe are made in Morocco, where 73% of production is exported to 73 countries, notably in Europe and the MENA region.

The expanding car industry sector in Morocco has attracted significant PSA Peugeot Citroen investment to build a production plant worth $632 million near Kenitra. Works have already started to build the plant, which is expected to be ready in 2019.

The factory will have an initial annual production capacity of 90,000 vehicles expected to rise to 200,000 as sales pick up. Most of the output will be exported to African markets.

The PSA Peugeot Citroen plant is further drawing car parts makers, such as Canada’s Linamar, which announced its plan to build a factory destined to supply engine parts. Following suit, U.S. auto parts maker Delphi Corp. will also set up a new factory making electrical distribution systems and a research and development center in the North African kingdom.

Recently, Italian car part maker, Sogefi, announced the building of a plant to produce engine filters in Tangier for a total investment of €10 million.

The development of the automotive industry in the country will help the government create 90,000 jobs by 2020 in addition to the 100,000 that already exist. The government also aspires to increase the proportion of locally produced components in exported cars from 40% to 65% by the end of the decade.

 

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