Automotive Industry: Japanese Sumitomo strengthens its presence in Morocco; targets 16,000 new jobs by 2028

The Japanese Sumitomo corporation intends to expand its operations in Morocco with the launch of nine new industrial units for the manufacturing of wiring and components in different regions of the Kingdom for a total investment of 1.96 billion dirhams.

The framework agreement between Morocco and Sumitomo corporation for the development of these industrial projects was signed in Rabat on Wednesday during a ceremony chaired by the Minister of Industry and Commerce, Ryad Mezzour.

Under the agreement, meant to strengthen the dynamics of the Moroccan automotive ecosystem, nine new projects will be set up in different regions of the Kingdom, including Rabat-Salé-Kenitra, Tangier-Tetouan-Al Hoceima and Casablanca-Settat. They are expected to create 16,000 new direct jobs by 2028.

In this regard, a first investment project of this framework agreement will be deployed by the Group’s subsidiary SEBN in Bouknadel with the establishment of a new industrial unit dedicated to the manufacture of electrical harnesses. This investment of more than 320 million dirhams will allow the creation of more than 4,500 jobs.

Speaking on this occasion, Minister of Industry and Trade, Ryad Mezzour, said that “with this new investment by the Sumitomo group, the Moroccan automotive platform confirms its attractiveness to global suppliers, allowing us to continue to generate employment for our young Moroccans”.

“This demonstrates once again, the great trust placed by investors in our ecosystem since they do not hesitate to invest and reinvest,” he added.

Mezzour also highlighted the importance of the Moroccan automotive sector and its strategic position in the national economy in terms of job creation and exports.

For his part, CEO of Sumitomo-SEBN Morocco, Adil Semrich, welcomed, on behalf of the group, the signing of this framework agreement to expand and diversify the group’s business in several regions of Morocco.

He also expressed the group’s confidence in the Moroccan skills to deploy this project and others in the years to come, in order to strengthen the competitiveness of this company.

Japanese group Sumitomo, along with Fujikura automotive and Yazaki are currently the largest industrial employers in Morocco, employing 30.000 people in the sectors of wire harness and airplane parts.

Morocco stands as the second largest destination for Japanese investments in Africa with 75 firms employing 50,000 people, a position that well-places the Kingdom to attract more investments as Japan seeks a foothold for its companies at the crossroads of major global trade routes.

Thanks to its world class infrastructure including major ports such as the Tanger Med Port and the existence of competitive ecosystems in the car and the automotive industry, Morocco is poised to attract investments from more Japanese firms amid an ongoing reconfiguration of the global supply chain map.
Japan is also considering Morocco a gateway to the African market where Moroccan banks are active. Japanese bank Mizhu Bank had signed a deal with Attijariwafa Bank, while Moroccan BCP bank had signed a deal with Sumitomo Mitsui Banking Corporation to work together in the African continent.

In the field of agriculture, Morocco enjoys a trade surplus with Japan, which relies on Morocco for 20% of its fertilizer imports.