Switzerland-and-U.S.-based TE Connectivity Ltd., a world leader in connectivity, has opened its first cable manufacturing plant in Africa in a process that was expedited by the Moroccan government, the company said in a press release.
Formerly named Tyco Electronics, TE Connectivity is a $12-billion global technology company listed on the New York Stock Exchange. It has 72,000 employees, including over 7,000 engineers, doing business in up to 150 countries. The company’s corporate headquarters are in Switzerland and its executive headquarters are in the U.S.
TE makes connectors and sensors for transportation, industrial and communications solutions.
The the new cable assembly plant in Morocco is “an important milestone in TE’s strategic partnership with the Moroccan government to join the automotive ecosystem,” TE said.
TE’s new Morocco site will focus exclusively on special-purpose cable assemblies, manufacturing products for automotive applications. It will serve automotive customers in Africa, Europe and the Middle East.
Impact from a strong U.S. dollar, weakness in the industrial market and soft demand from China have weighed on recent revenues for TE, whose earnings fell 25 percent in the latest quarter, WallStreetJournal reported on Tuesday.
Transportation is the company’s largest segment by revenue. Organic growth in its sensors and auto businesses have offset a decline in its commercial business.
TE Connectivity has been realigning its business to focus on its connectivity and sensor markets and to strengthen its presence in applications for harsh environments, which are found inside a range of products including vehicles, WSJ reported.
Opening manufacturing operations in Morocco will create new business opportunities for TE and bring production closer to its customer base, said John Pryce, TE senior vice president and general manager for automotive EMEA, in a prepared statement.
Morocco has established the automotive sector as one of its top priorities for growth. TE established the facility and started operations in less than one year.
TE’s investments in Morocco are an important step for the development of the automotive industry in Morocco, said Moulay Hafid Elalamy, Minister of Industry, Trade, Investment and Digital Economy, in a prepared statement. “They will generate new jobs, and foster both a greater integration of the sector and the replacement of imports. They will also create opportunities for local partners and suppliers.”
The rapid establishment of the project was made possible by an exceptional level of commitment and support from the government and the Tangier Free Zone, according to TE.
“The Tangier-Med industrial platform is supporting the expansion of the Automotive ecosystem in Tangier. With its innovative solutions, TE is a great addition to our community and benefits from excellent infrastructure as well as a highly educated workforce and business mindset in Morocco,” said Mehdi Tazi, director for TMSA Industrial Platforms, in a press release.