World’s largest aluminum wheel producer launches second factory in Morocco

Chinese Citic Dicastal group, the largest producer of aluminum wheels in the world, launched a second factory worth €350 million in Morocco’s Kenitra, one year after opening a plant in the same area.

Part of a project dubbed, Citic Dicastal Africa, the new plant stretches over a surface area of 30,000 square meters and will create 1200 jobs.

The setting up of the plant was agreed during King Mohammed V’’s visit to China as it perfectly illustrates the willingness of the two countries to strengthen industrial cooperation as part of the One Belt One Road initiative and Morocco’s industrial strategy.

This investment will enable Morocco to become the third largest aluminum wheel producer in the world.

Last year, the Chinese company opened its first plant in Kenitra where it plans to produce 6 million wheels annually, 90% of which will be exported.

Kenitra, home to PSA plant and car part suppliers, is luring automotive manufacturers tapping into the free trade zones and the upcoming port.

Kenitra is also connected through high-speed train and highways to one of the largest ports in Africa, Tanger Med, next to which Renault has one of its most competitive factories.

In addition to Citic Dicastal, South Korea’s giant Hands Corporation set up a factory in Tangier with a production capacity of 8 million wheels.

Morocco raised its automotive industry target to 1 million vehicles by 2025 with revenues expected at 200 billion dirhams.

According to official figures, jobs created in the automotive sector reached 116,000 by mid 2019 while the rate of locally produced parts in Renault and PSA stand at an average 50% with the goal of reaching 65% in 2020.

Cars were Morocco’s main export in 2018, accounting for 27% of total exports exceeding phosphates and agriculture.