RABAT, Sept. 26 (Xinhua) -- The Moroccan government on Tuesday signed a deal with Italian auto parts manufacturer Magneti Marelli on building a car factory.
The deal was inked by Moulay Hafid Elallamy, Morocco's minister of industry, investment, trade and the digital economy, with the CEO of Magneti Marelli Pietro Gorlier.
The plant, which will require about 37 million euros (43.6 million U.S. dollars) in investment, will be located in the northern city of Tangier.
It will create 500 jobs and its production is forecast to begin within 2019, with a capacity of producing approximately 6 million cars by 2025.
Speaking at the signing ceremony, Elalamy underlined that the Magneti Marelli project feeds the manufacturing and sourcing ecosystems of Morocco's Industrial Accelerated Plan.
"With this new project, a new craft is being developed in Morocco, the value chain is getting more complex and the sector is gaining from a successful integration," he said.
For his part, Gorlier said that the creation of an industrial site in Morocco represents an opportunity for his company to further expand its business, in response to the demands and needs of a number of key clients that are making important investment in the area.
Magneti Marelli, a subsidiary of Fiat since 1967, designs and produces advanced systems and components for the automotive industry.
