Italian auto components producer Magneti Marelli Group is planning to build two new manufacturing plants in Morocco to serve customers in southern Europe and North Africa.
At a recent ceremony in Rabat, Morocco, Pietro Gorlier, chief executive of the company, signed an investment agreement with the country’s Trade and Industry Minister Moulay Hafid Elalamy for the construction of a €28.5m plant to produce car lighting and electronic systems and control pedals.
This facility, to be located in Tangier Automotive City Free Zone, is scheduled to create 200 jobs and is the second of the two plants planned there by Magneti Marelli, a subsidiary of automotive giant Fiat Chrysler.
Also at the ceremony, the two parties marked the start of construction of the Italian company’s other Tangier manufacturing unit which is due to start turning out vehicle shock absorbers.
The project forms part of a development agreement signed between Corbetta, Italy-based Magneti Marelli and the Moroccan government last year which included building the €37m shock absorber unit which is set to employ a 500-strong workforce.
The facility will cover an area of approximately 20,000m2 and is scheduled to begin manufacturing in 2019.
Commenting on Morocco’s industrial strategy, the Trade and Industry Minister said: “We are delighted that the current dynamics of our automotive industry and the Kingdom’s strong position in this sector have led the Magneti Marelli Group to expand its business in Morocco”.
Moulay Hafid Elalamy pointed out the new development by the Italian components maker is expected to benefit a number of local suppliers from whom Magneti Marelli is due to buy materials.
Magneti Marelli’s North African manufacturing project seeks to provide services for the company’s customers in Morocco as well as in markets of southern Europe including Spain, Italy and Turkey.
Magneti Marelli designs, develops and manufactures a range of complex plastics systems for vehicle dashboards, bumpers, central consoles and car fuel supply.
The Italian parts maker, which was recently earmarked as a business spin off prospect by Fiat Chrysler with its possible sale to US buyout firm KKR & Co, operates 85 production plants and 15 research and development centres around the globe.
It employs an international workforce of around 43,000 and in 2016 recorded annual turnover of nearly €80 billion.
Magneti Marelli’s automotive lighting division, based at Reutlingen, Germany, alone employs 13,480 in 21 countries. It runs 16 production units and 2 research centres and has annual sales worth €1.8m.