Canadian Manufacturing

Linamar to build new engine component plant in Morocco

Canadian manufacturer will build a US$280 million facility in North Africa to supply major European automakers with engine parts, report says



CASABLANCA, Morocco—Canadian auto parts manufacturer Linamar Corp. is building a new plant in the North African country of Morocco.

Announcing a series of major investments as part of an economic reform plan July 4, Morocco’s King Mohammed VI said a number of international companies, including Guelph, Ont.-based Linamar and the U.K.’s Delphi Automotive plc will invest approximately 7.5 billion dirhams (US$770 million) in the kingdom.

The government said the 30 contracts finalized Monday will provide 39,000 new jobs as the country works to capitalize on its reputation as a safe market in a volatile region.

“Morocco’s biggest capital is security, which continues to attract investments” Moulay Hafid Elalamy, the country’s minister of Industry, Commerce, Investment and Digital Economy, said.

According to Reuters, Elalamy said the Linamar plant will cost 2.7 billion dirhams (US$280 million) and build engine parts for a number of automakers poised to open facilities in the African country.

PSA Peugeot Citroen is planning to start production at an approximately $632 million plant near Kenitra, Morocco in 2019, while French automaker Renault Group announced a plan to invest more than $1 billion its operations in the country earlier this year.

Linamar currently has 57 plants and employs 23,000 workers globally.

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