Renault has signed agreements with the Moroccan government for a new vehicle manufacturing plant near Tangiers.

Work on the Renault-Nissan Alliance plant starts next month on a 300-hectare site inside the Tangiers Mediterranean special economic zone.

The site will eventually have capacity of 400,000 vehicles per year (200,000 from 2010), providing the Renault-Nissan Alliance with one of the largest manufacturing complexes in the Mediterranean.

The EUR600m investment will create 6,000 direct jobs and 30,000 indirect posts. The plant will build low-cost cars on Renault's Logan platform and Nissan-designed light commercial vehicles.

Renault has operated in Morocco since 1928 and has assembled vehicles in the SOMACA plant (owned 80% by Renault and 20% by PSA) since 1966.

The Logan was launched in Morocco in July 2005 and became the best selling vehicle there in its first six months. Last year, 12,700 were sold.