AGC Automotive Europe has reached a basic agreement with Induver Holding, a glass manufacturer in Morocco, to set up a joint venture for manufacturing automotive glass destined both for Europe and for North African markets.
The move marks the AGC Group's first operations in Africa. In parallel, AGC will acquire a stake in Induver, which specialises in automotive glass for the aftermarket and commercial vehicles as well as glass for building applications.
This latest deal is subject to approval by the relevant local authorities.
The new joint venture will produce tempered glass for backlites and sidelites, as well as laminated glass for windscreens. It will have capacity to supply around 1.1m car sets annually.
The facility will be built in Kenitra province in the northern coastal area of Morocco and is expected to start commercial production in 2019, with staff numbers estimated to be around 600.
Morocco has been enjoying the highest economic growth in North Africa, reflecting its position in recent years as an automotive production base for Europe.
Various western carmakers have already established or announced operations in Morocco," said AGC Automotive Europe general manger, Marc Meunier.
"This investment is in line with our willingness to accompany our customers in their expansion and respond to their demand for high value added products and services."