French PSA Group Injected €280 million in its New Kenitra Plant

French PSA Group Injected €280 million in its New Kenitra Plant

King Mohammed VI chaired on Thursday in the province of Kenitra the inauguration ceremony of the French PSA group’s ecosystem in Morocco, a project that required a €280 million investment and that confirms the thriving car industry in the North African Kingdom.

On this occasion, the Sovereign inaugurated the PSA group’s new plant, expected produce annually up to 100,000 vehicles and associated engines, and launched the extension works of this industrial complex, whose production capacity will be doubled by 2021, instead of 2023 as initially planned, while creating up to 4,000 jobs.

The inauguration ceremony started with the screening of a film showing the deployment of the PSA group’s ecosystem in Morocco, the impact of this project on the national car industry and the efforts made to ensure its success.

Taking the floor, Minister of Industry, Trade, Investment and Digital Economy Moulay Hafid Elalamy said the French PSA group invested 3 billion dirhams ($1 = 9.5 Dh) in the plant and plans to invest as much in its future projects in Morocco, noting that the new factory ‘PSA Kenitra’ was designed to produce both electric and thermal vehicles.

He said the vehicles produced in the PSA factory benefit from an integration rate of more than 60 pc. He noted that 27 new plants of 10 nationalities have already gained a foothold in Kenitra, and that the R& D center, which hired 1,500 engineers and senior technicians, employs today 2,300 skilled persons, 85 pc of whom are engineers.

PSA purchases of parts manufactured in Morocco reached €700 million in 2018, well above expectations, added the minister noting that the goal of one billion euros of purchases will be achieved before 2025.

PSA executive vice president for the MENA region Jean-Christophe Quemard said Morocco is at the heart of the growth strategy of PSA Group, which is today one of the most successful car manufacturers in the world.

“It is in the Kingdom that our Group has chosen to set up its Regional Decision Center, and to develop a Research and Development Center integrated in the PSA Group’s global R&D network”, underlined Mr. Quemard.

During this ceremony, which was marked by unveiling the new Peugeot 208, produced in the Kenitra factory, the Moroccan Sovereign visited the different workshops of the PSA factory.

Morocco’s automotive industry is growing at a rapid pace due to incentives and competitive factors attracting more and more investors and car parts makers.

These factors include Morocco’s proximity to the European market, modern infrastructures, free trade zones, qualified manpower, open economy and stability.

The exports of this sector, which currently employs a total of 189,600 people, doubled between 2013 and 2018, increasing from 31.7 billion dirhams to 65.1 billion dirhams, making the automobile industry the Kingdom’s leading export sector for the 4th year in a row.

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