Citic Dicastal to produce aluminum car wheels in Morocco
China's Citic Dicastal will invest 350 million euros (2.8 billion yuan) to build two aluminum car wheel factories in northern Morocco, Morocco's industry, trade and investments ministry said, joining a string of foreign auto parts makers setting up manufacturing in the country.
The first factory will be built in the Atlantic Free Zone in Kenitra, with output starting in 2019, while the second plant will be established later in Tangier Tech.
Citic Dicastal aims to produce 6 million wheels annually, most of which will be exported, the ministry said.
Investment incentives in industrial free zones and proximity to Europe as well as African markets are luring auto component producers to invest in Morocco. French car makers Renault and Peugeot PSA have also set up factories in Tangier and Kenitra.
The government plans to boost the share of cars made and sold in Morocco to 80 percent by 2020.
"Through this project, Dicastal expands its international investments and contributes to Morocco's industrial development and Moroccan-Chinese trade," Citic Dicastal Chairman Xu Zuo said at a signing ceremony.
Last April, South Korea's Hands Corp. began building an aluminum wheel plant in Tangier – with a price tag of 4.33 billion dirhams ($472 million) -- and annual production capacity of 8 million units.
The auto industry was the country's largest industrial exporter in 2017 with shipments valued at 70 billion dirhams. Through June, automakers and suppliers led Morocco's industrial exports with a rise of 19.1 percent to 35.973 billion dirhams compared to the same period a year earlier.
Citic Dicastal aims to produce 6 million wheels annually, most of which will be exported, the ministry said.
Investment incentives in industrial free zones and proximity to Europe as well as African markets are luring auto component producers to invest in Morocco. French car makers Renault and Peugeot PSA have also set up factories in Tangier and Kenitra.
The government plans to boost the share of cars made and sold in Morocco to 80 percent by 2020.
"Through this project, Dicastal expands its international investments and contributes to Morocco's industrial development and Moroccan-Chinese trade," Citic Dicastal Chairman Xu Zuo said at a signing ceremony.
Last April, South Korea's Hands Corp. began building an aluminum wheel plant in Tangier – with a price tag of 4.33 billion dirhams ($472 million) -- and annual production capacity of 8 million units.
The auto industry was the country's largest industrial exporter in 2017 with shipments valued at 70 billion dirhams. Through June, automakers and suppliers led Morocco's industrial exports with a rise of 19.1 percent to 35.973 billion dirhams compared to the same period a year earlier.
