Japanese firms plan $103 million investment in Morocco car parts sector

Sumitomo Electric Industries

12/01/2021 13:18

RABAT, Jan 12 (Reuters) - 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;))