Tanger Med, Morocco (PortSEurope) September 10, 2019 – The European Bank for Reconstruction and Development (EBRD) has agreed to a €75 million subscription in a Schuldschein issuance by Peugeot S.A. (PSA), for use by its subsidiary in Morocco.
This will support increasing the production capacity of PSA Morocco’s vehicle assembly plant in Kenitra from 100,000 to 200,000 vehicles per year and supports the company’s investments in research and development (R&D).
The project aims to increase women’s participation in the workforce and increase PSA Morocco’s competitiveness through an investment in R&D.
The total project costs is €525 million.
In June this year, PSA on Friday opened its €555 million ($630 million) factory in Kenitra’s Atlantic Free Zone, near Rabat. It investment has encouraged the setting up of over 25 car part suppliers in Kenitra, supplying both PSA and Groupe Renault, which has two plants in Morocco. PSA is also building petrol engines at the plant, many for export to other PSA factories in Europe.
In October last year, the Tanger Med port complex was in preparation to start exporting locally made vehicles for PSA to European markets. In June this year, the Tanger Med 2 extension project was inaugurated that will allow Morocco’s Tangier port to surpass some of the key international ports in terms of container capacity in the Mediterranean.
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