PSA Peugeot-Citroën to invest in a new plant in Morocco

Africa and the Middle East are historic markets for PSA Peugeot-Citroën, especially for the lion brand, which ranks second in Algeria, while the French group is first in Tunisia and second in Morocco. Therefore, a €557 million investment in a new assembly plant in Morocco would represent an improvement in the marketing and distribution services for vehicles in the countries of the African continent and the Middle East.

An agreement has just been signed by King Mohammed VI, PSA Group president Carlos Tavares and officials of the Moroccan government so that the construction of the new facilities will begin in 2019. The plant will accommodate the assembly of segment B and C vehicles, both from Citroën and Peugeot, as well as engines for the local market and that of other countries in the region.

The facilities will have an initial production capacity of 90,000 vehicles and engines per year, but this will increase over time until reaching its maximum capacity of 200,000 vehicles per year. For the time being, it is unknown which models and engines this future plant will produce, although the PSA Group does expect to be able to source 60% of the components initially, with the aim of reaching 80% later on.

This new PSA Peugeot-Citroën plant is part of the group’s plans to sell 1 million vehicles a year in Africa and the Middle East by 2025, out of an estimated 8 million total sales in these regions in the long-term future.

Via | CarScoops