Japanese company Sumitomo Electric Industries has signed an agreement with Morocco’s Ministry of Industry and Trade to invest nearly MAD 2 billion ($190 million) in Morocco’s automotive ecosystem.
The investment is set to allow the creation of 16,000 new direct jobs by 2028, in nine different projects in the regions of Rabat-Sale-Kenitra, Tanger-Tetouan-Al Hoceima, and Casablanca-Settat.
The agreement was signed on Wednesday in a ceremony chaired by Morocco’s Minister of Industry and Commerce Ryad Mezzour.
The first investment will be deployed by the group’s subsidiary in Bouknadel, which will establish an industrial facility dedicated to manufacturing electrical harnesses in an investment reportedly worth MAD 320 million ($30 million). The facility is set to create more than 4,500 jobs.
“With this new investment from the Sumitomo group, Morocco’s automotive ecosystem strengthens its attractiveness to global suppliers and enables us to continue generating employment for young Moroccans,” said Mezzour at the signing ceremony.
“We are confident in Moroccans’ abilities and skills to deploy this project and others in the years to come, with a constant view of strengthening our competitiveness,” said Adil Semrich, CEO of Sumitomo’s SEBN Morocco subsidiary.
Sumitomo electric industries is a manufacturer of electric wires and optical fiber cables headquartered in Japan. Founded in 1897, the company operates in five sectors: automotive, communications, electronics, environment and energy, and industrial materials.
Already an attractive destination for international automotive companies, Morocco has been working on strengthening its position in the sector by encouraging foreign investments and publicizing its assets in the sector.
As of December 2022, the North African country had over 180 industrial units dedicated to the automotive industry, with Tangier and Casablanca being the most popular sites for activity in the sector.
Neo, the 100% Moroccan made car is set to be available on the local market in the coming weeks, Mezzour confirmed earlier this week.
SOURCE: Morocco news
