Sogefi, the automotive components company of the CIR Group, has announced a plan to build a new factory in Morocco, the company’s first industrial site in Africa.
The company has already received new orders for both the local market and the European market that will bring in additional annual sales of EUR30m (US$32m) from 2020.
The plant, which will start operating at the beginning of 2018, will manufacture two different models of engine filtration systems (a metal diesel filter and an oil filtration module) for original equipment manufacturing (OEM) and original equipment spares (OES) for various vehicle types. The 10,000 square-metre factory will be built in the free trade zone of Tangier and will employ 120 people.
Potential new business initiatives currently under negotiation could increase the size of the plant to 25,000 square metres and the number of employees to 300, giving annual sales of EUR60m in 2021. With this scenario, the total investment could reach EUR10m.
“This investment,”Sogefi’s CEO Laurent Hebenstreit said,”further strengthens the competitiveness of Sogefi’s manufacturing base and provides support for profitable growth in Morocco and in Europe”.
Moroccan car production has experienced strong growth in recent years; several international car manufacturers and component suppliers have already invested or are planning to invest in Morocco, for which a production volume of one million vehicles per year is envisaged around 2025.