RABAT- Japanese wire harness makers Yazaki and Sumitomo are planning to build new factories in Morocco, costing a combined $103 million, to supply the automotive sector, the Moroccan industry ministry said on Tuesday.

Yazaki will build three new factories in Tangier, Kenitra and Meknes worth $52 million while Sumitomo will set up its fifth Moroccan factory in Casablanca for $51 million, the ministry said.

The Sumitomo plant will export its output to supply vehicle makers FCA and CNH Global, the ministry said.

Morocco hosts production plants for French carmakers Renault and PSA, which have encouraged investments by car part suppliers.

The automotive sector tops Morocco's exports despite a drop of 10% to $6.6 billion in the first 11 months of last year due to the coronavirus pandemic.

(Reporting by Ahmed Eljechtimi; Editing by Alison Williams) ((ahmed.eljechtimi@thomsonreuters.com;))