Morocco signs deal to boost auto parts production

Morocco has singed eight investment agreements with international automakers to enhance the supply of electrical wiring systems in the country.

With a total value of $179 million (MAD 1.7 billion), the deals were signed with Yazaki, Sumitomo Group, Lear, Stahschmidt Cable Systems and TE Connectivity, the Moroccan industry and trade ministry announced March 24.

The move, according to minister Riad Mazour, aims to localize the manufacturing of electrical conductors, cable and cable bundle terminals for electric cars as well as plastic and other precision parts.

The deals include three agreements with Yazaki Group to establish a factory for the production of electric wires for cars in Meknes and to expand units in Kenitra and Tangiers.

With a total investment of $77.8 million, the projects are expected to create 6,300 jobs.

U.S. auto supplier Lear Corp. also signed two agreements to build two factories in the country.

Lear's production facility in Tangiers will manufacture cable bundles and electrical conductor terminals. A second facility will be built to produce electrical cables for cars in Meknes.

In total, Lear's investment will amount to $35.8 million and will create 2,100 jobs.

Swiss manufacturer TE Connectivity will build a connector molding and assembly plant in Tangier at $21 million, while Germany's Stahlschmidt will launch a factory to build cables and locking systems in Tangier for $11.1 million.

An agreement was signed with Sumitomo Group to expand its electrical cable belts manufacturing plant in Casablanca with an investment amount of $15.1 million and a potential to create 2,000 new jobs.

The Sumitomo deal comes a week after the press reports suggested that the Japanese manufacturer was transferring the production of automotive wire harnesses to Romania and Morocco from Ukraine following Russia's invasion.