Morocco has taken a new step in its industrial push with the inauguration of the expanded Stellantis plant in the Northwestern Kenitra city.

Prime Minister Aziz Akhannouch headed the ceremony on Wednesday and described the project as part of the country’s long-term ambition to grow a competitive, integrated, and value-driven economy. 

The €1.2 billion ($1.3 billion) investment by the multi-national auto manufacturer includes €702 million ($792 million) dedicated to developing local suppliers. 

It will double the plant’s production capacity and raise the local integration rate to 75 percent by 2030, Morocco’s press said, citing a statement by the Netherland-based Company.

The expansion is also set to create 3,100 direct jobs and strengthen Morocco’s position as a key player in the global automotive industry. 

Akhannouch said the project reflects the goals of the New Investment Charter and Morocco´s industrial roadmap.

Minister of Industry Ryad Mezzour emphasized the scale of the achievement, saying Morocco now stands among the few countries with an annual automotive production capacity exceeding one million vehicles. 

He called the project a result of shared confidence between Morocco and Stellantis, and a sign of growing technological independence that offers skilled opportunities for young Moroccans. 

From its launch in 2016, the factory's production has progressed to reach 200,000 vehicles per year by the end of 2020, three years ahead of schedule.

Stellantis plans to produce 350,000 engines annually at the site in two phases.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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