PSA MoroccoMorocco – With operations scheduled to begin in 2019, the new facility at Ameur Seflia, Kenitra, will form part of a broader strategy to provide capacity for the African and Middle-Eastern markets, where the OEM expects production volume to reach 8m vehicles by 2025.

Costing €557m ($633m), PSA’s Morocco project will focus on B- and C-segment vehicles and engines. The new plant will leverage the competitive supplier base in Morocco, which will in turn benefit from the planned ramp-up from 90,000 units at launch to 200,000; local content will begin at 60%, rising to 80%.

“Africa and the Middle East are among PSA's historic markets and we must make this region a key driver of international growth as part of our ‘Back in the Race’ plan,” said Carlos Tavares, chairman of the management board, PSA. “The agreement signed today with the Kingdom of Morocco will allow us to increase our production capacity in the heart of the region in order to achieve our goal of selling 1m vehicles by 2025.”

PSA says the Moroccan plant will complement its existing production footprint in Nigeria as well as facilities currently being negotiated in Iran. In terms of sales, the Group already has a strong presence in Morocco and Tunisia, while Peugeot in particular is a leading player in Algeria as well as the region as a whole. PSA is planning for Africa and the Middle East to become its third-largest profitable growth market.