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20/06/2017 - 07:00hs

Peugeot starts building plant in Morocco

France’s PSA is also the owner of brand Citroën. The manufacturing is due for completion in 2019 and its production capacity will be 200,000 vehicles per year.

São Paulo – French carmaker PSA, the owner of brands Peugeot and Citroën, has started building a plant in Kenitra, near Morocco’s capital Rabat last week. The facility will be located inside a free zone with an annual production capacity of 200,000 vehicles, Maghreb Arabe Presse (MAP) has reported.

Construction is slated for completion in 2019. The plant is expected to create 3,500 direct and 20,000 indirect jobs, Morocco’s minister of industry and Trade Moulay Hafid Elalamy said at a launch ceremony.

According to Elalamy, the plant will start out with a 60% local content rate, which will later be increased to 80%. Morocco’s auto industry has made strides over the past few years, especially in auto parts. France’s Renault already owns two auto plants in the country.

Also at the ceremony, PSA chairman Carlos Tavares noted that the project is part of a global strategy for the group, which is planning to expand in the Middle East and North Africa. Tavares added that sales in the region doubled from 2014 to 2016.

Tavares also said the carmaker expects to sell 1 million vehicles in those markets by 2025, 70% of which will be made locally. The company entered into a cooperation agreement with a network of training institutes for industry professionals.

The plant will be built over a 54-hectare area. Construction is expected to take 30 months, involving 1,500 workers and 100 different companies.

*Translated by Gabriel Pomerancblum

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