Moroccan Automotive Industy : opportunities and perspectives
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1 Moroccan Association for Automotive Industry and Trade Moroccan Automotive Industy : opportunities and perspectives Salma ADNAN, Communication and Marketing Responsible Paris, 16/10/2013
2 L industrie automobile au Maroc, une évolution progressive Creation of SOMACA Convention sur les VUL avec Renault Adoption of integration/ &PSA Compensation law Start of Logan production Signing of an agreement between Government and Renault Tangier-Med project Valuation Law Agreement on Low Cost Vehicles with Fiat Privatization of Somaca First exports of Logan Start of the 1st line RTM Renault Tangier-Med project in Melloussa vehicles by 2014 ( in 2012) Suppliers network development World class infrastructures and services Skilled human ressources and training support an offer with competitive incentives
3 An overview on current Situation:. Major project : Renault Investment in Tangier Renault is developing a mega sitecenter in the North Area of Morocco Production Employment 400,000 cars per year to be produced in 2013 ( in 2010) Capacity: 60 cars per hour Direct Employment Indirect Employment The most competitive site of the Group Investment Total Investment: 1 Billion Site 280 Ha to create major Renault site Situation ~44km to Europe ~30km to Tangier Med port Locking to Highway Logistics Car carrier terminal in Tangier Med Port Easy access to a huge containers traffic 3
4 Car Manufacturing in morocco Tangier I Tangier II SOMACA North zone South zone Production capacity : TANGER : vehicles/year SOMACA : vehicles/year
5 Suppliers in Morocco Tangier Tetouan Kenitra Casablanca North Zone South Zone 5
6 Automotive Industry structure in Morocco Providers Subcontracters Tier 1 Suppliers Cars Manufacturers Constructeurs South Europe 6
7 Figures of the automotive sector in Morocco Exports (Millions Euros) 2702,4 2336,1 1827,6 1195, Year 2009/ / /2012 evolution + 52,8% +27,8% +15,7%
8 Proximity to a potential market The Europeen Market, 14 km far Advanced status with the European Union TUNISIA LIBYA MOROCCO EGYPT AFRICA + MIDDLE EAST MOROCCO Fast-growing region 17% Annual growth vehicles in 2015 JORDAN EUROPE A market of 4,2 millions vehicles
9 Integrated Moroccan offer To support this strategy and achieve tangible results, The PNEI ( Industrial Emergence National Plan) suggests an integrated offer aiming at the development of the investments in the automotive sector; it is based on three components : Infrastructures and services world class Qualified Human Ressources and training support Offer with competitive incentives
10 Worldclass infrastructures &Services : A diversified range of real estate with best international standards within Integrated Industrial Plateforms (P2I) World-class Infrastructures and Services Government interest (Territorial development) P2I Single Point of Contact in the Zone Competitive Incentive package Attractive Training incentive scheme Proactive plan for the sector P2I : an integrated vision of territorial development and the national economy R &D Integrated logistical platform Professionnals interest (Pool of employment, logistics, etc.) Logistic linking to the City Housing and life scheme
11 Worldclass ifrastructures & Services : Two Integrated Industrial Platforms dedicated to the automotive sector : Kénitra & Tangier Tangier Automotive City (TAC) Atlantic Free Zone (AFZ) 11
12 Pool of competitive ressources and training support : A Training incentive scheme, adapted to the needs of the automotive sector : Objectives Training of profiles (of whom at the charge of Renault) in the automotive sector to accompagny its developpement: engineers and managers intermediary trainers technicians operators Action s axes Elaboration of a Training incentive scheme for the automotive sector. Breakdown of staff on key training existing public and private systems, including Higher Education, Training and Learning System, Technical Education, private institutions for skills training funded through ANAPEC Follow up and up dating of training program Exemptions of payroll taxes for 24 month for a salary of 550 $ per month; Direct support to training during the first Three years 1 2
13 incentive plan for the sector Attractive incentives plan for the sector Significant reduction of the corporate tax: complete exemption for the first 5 years, and 8.75% for the following 20 years in the free zone No VAT Applied either in Importation & Exportation No Taxes on Dividends (vs. 10% for locals) Financial support for the establishment in key areas: 30% of Professional Building costs: with a ceiling of 182 /m² 10% equipment costs for machinery investment exceeding Ceiling: 1.8M Euros (or 10% of total investment) Average Tax Rate: 7% over 25 Years 1 3
14 AMICA s Presentation AMICA assists the automotive suppliers by representing them before government economic and administrative institutions acting in : Suppliers Upgrading 1 2 Export promotion 3 4 Investment attraction Training development
15 Automotive Training Institutes (IFMIA) in Morocco Tangier Kenitra Casablanca Fès A global investment of 314 millions Euros 15
16 Automotive Training Institutes (IFMIA) in Morocco IFMIA of Casablanca: sqm Workshops sqm Classes sqm Administration sqm Students residential sqm 16
17 AMICA s Events 17
18 Contact details : Salma ADNAN Communication & Marketing Responsible s.adnan@amica.org.ma (Association Marocaine pour l Industrie et le Commerce de l Automobile) 625, Bd. Mohamed V Casablanca-Maroc Tél : +212 (0) (0) Fax :+212 (0)
19 Thank you
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