North Africa gets giant car plant
The biggest car factory in North Africa is about to be officially opened in Morocco by the French firm Renault.
The plant is in Melousa, a small town on the Mediterranean near Tangiers, in an area close to Europe which offers tax benefits to manufacturers.
Low-cost cars will be produced under the Dacia brand for emerging markets and Renault executives say up to 10% of the production could be sold locally.
It employs about 2,000 local staff and intends to triple production by 2015.
The BBC's Nora Fakim in Tangiers says this could boost staff numbers to 6,000 and create up to 35,000 jobs indirectly.
King attendingIn recent years, Morocco's economy has been expanding thanks to free trade deals with international partners, but unemployment remains an issue - especially for graduates, who hold weekly protests outside parliament.
End Quote Fouad Abdelmoumi EconomistRenault was about to abandon this investment and the Moroccan state gave it huge advantages to convince Renault to continue”
Morocco's King Mohammed VI is to attend the inauguration in Melousa, along with the country's trade minister and the head of Renault.
Our reporter says like many foreign companies investing in Tangiers - in an area known as the Tangiers Free Zone - Renault says it wants to help develop northern Morocco, which was neglected by past governments.
Renault has invested $1.5bn (£946m) in the factory, which currently has the capacity to produce 147,000 cars annually.
But some, including economist Fouad Abdelmoumi, are sceptical about the project.
"We know that Renault was about to abandon this investment and the Moroccan state gave it huge advantages to convince Renault to continue, including tax incentives," he told the BBC.
These incentives mean the real value to the economy is minimal, he said.
Our correspondent says a number of other foreign car companies aim to open up near the Renault plant, such as Ford and Chinese and Indian manufacturers.
Rate this article
Breaking News
Three drown as death toll surges to 66
Photo|ROBERT NYAGAH|NATION Malinid residents carrying their goats after their homes were marooned by floods on May 9, 2012. The UN report says this year has ...
MPs reject agencies’ calls for more cash
IEBC chairman Issak Hassan (right) and commissioner Bwire Albert before the Parliamentary Committee on Justice and Legal Affairs during scrutiny of the commission’s budget on ...
MRC demands lifting of ban before any talks
Alternative text.Mombasa Republican Council spokesman Mohammed Mraja (left) with his national treasurer Omari Babu (centre) and the elders’ council secretary Salim Hamisi. Photo/GIDEON MAUNDU By BOZO JENJE ...
Mali: Transitional President 'Beaten by Protesters'
The transitional president of Mali has been admitted to hospital after protesters reportedly burst into his office and beat him. According to BBC, Traore was unconscious ...
Angola: Calls for Govt to Investigate Abuse of Congolese Migrants
Johannesburg — The Angolan government is being urged to carry out a thorough and independent investigation into allegations of sexual and physical abuse by its ...
Cossy Orjiakor: "I Am Sex Starved"
Tiny voiced and controversial actress, Cossy Orjiakor may have been off the movie scenes for a long time now, but she has not failed to ... Full story
West Africa: On Visit to Region, Security Council Praises Liberia's Progress
Ahead of their visit to Côte d'Ivoire, the members of the Security Council commended Liberia for its progress since the end of its civil war ...
Libya: Lockerbie Bomber Dies in Tripoli
Johannesburg — Abdel Basset al-Megrahi, the Libyan convicted of the 1988 bombing of a PanAm flight over Lockerbie, died of cancer on Sunday aged 60, ...
Section of Maai Mahiu-Narok road opens
A section of the Maai Mahiu - Narok being repaired causing a heavy traffic snarl-up along the busy highway. Photo/MACHARIA MWANGI A section of the Maai ...
Ex-Gaddafi spy chief is charged
21 May 2012 Last updated at 10:53 ET Former Libyan intelligence chief Abdallah al-Senussi has been charged in Mauritania with illegally entering the country, officials say. Mr ...



Joseph
www.joeydavila.com
Cholo
www.0y7.net
Cholo
www.0y7.net
Post your comment