Industry and trade minister advances plans to build a car production plant on Moroccan soil

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AFP/FADEL SENNA - A factory employee works on a car assembly line at the Renault-Nissan Tangier car assembly plant in Melloussa, east of the port city of Tangier

Aziz Akhannouch's government will sign in January next year an investment agreement worth 50 million euros to build an automobile production plant on Moroccan territory, according to the Minister of Industry and Trade, Riyad Mezzour, excluding operating costs. 

The former chief of staff of the ministry revealed the exclusive in an interview with the Saudi daily Asharq. Mezzour also said that the new factory will join the Renault and Stellantis industrial units operating in the Kingdom, which have an annual production capacity of 700,000 vehicles, including some 50,000 electric cars. 

The Moroccan state will bear the entire cost for the next three years. It is the government's first investment in this sector, which is expected to have an annual production capacity of around 3,000 vehicles, before reaching a rate of 20,000 in an estimated four years, according to Mezzour, none of which will be electric. 

The automotive industry is the country's second largest business sector. By October 2022, sales reached $8.4 billion, and the Bank of Morocco forecasts revenues of $9.5 billion by the end of December. 

The head of industry and trade clarified that the new brand is in its final phase after having passed all the planned tests and trials. The first production batch will also be destined for the local market.