Peugeot To Invest $632M In Morocco Car Factory

Peugeot To Invest $632M In Morocco Car Factory

From ABCNews. Story by Paul Schemm.

Morocco and French automaker PSA Peugeot Citroen on Friday agreed to build a new factory aimed at producing up to 200,000 cars
annually for the African and Middle East market.

The factory involves an investment of 557 million euros ($632 million) and is the second major agreement between Morocco and a French automaker, following Renault’s 2013 agreement to build a factory in Tangiers.

Peugeot head Carlos Tavares said the deal was part of the larger plan to revive the company’s fortunes and eventually sell 1 million vehicles in Africa within a decade.

“This region is important and dear to our hearts,” said Peugeot head Carlos Tavares. “We decided that PSA is ready to make a committed offensive on the African continent and Middle East.”

He credited Morocco’s infrastructure and the education level of its workforce for the decision to build the factory here. Morocco has been seeking to improve its economic ties with the rest of Africa as well as build up its industrial base to combat persistent unemployment.

“The automotive sector is an essential one for Morocco,” said Minister of Industry Moulay Hafid Elalamy. “It was the most dynamic sector for export between 2012 and 2014.”

Read more at ABCNews.