EBRD strengthens Moroccan automotive sector

The European Bank for Reconstruction and Development (EBRD) is promoting the automotive sector in Morocco through a €15 million loan to Tuyauto, supported by an unfunded first-loss risk cover from the European Union.

The investment will finance the construction of a new EDGE -certified green production facility near Rabat - 100 km from Tuyauto's existing facility in Casablanca - in which the tubular structures of various car models will be welded and assembled. The EBRD funds will also support the acquisition of new metal stamping equipment to meet the increasing needs of Stellantis in Morocco.

Morocco is a global producer and exporter of cars, with the automotive sector accounting for ‎‎25 per cent of its exports and directly supporting more than 200,000 jobs. The country has ‎established four industrial clusters in Casablanca, Kenitra, Rabat and Tangier, and has four specialised training institutes that ensure a continuous supply of skilled labour. This financing will contribute to a shift towards sustainable transport and will strengthen the export-oriented value chains of major original equipment manufacturers.

The EBRD's loan is complemented by a guarantee from the European Union through the European Fund for Sustainable Development Municipal Infrastructure and Industrial Resilience programme to support the company's environmental improvements, including a building certification according to EDGE standards.

Tuyauto is a Moroccan, family-owned tier-one supplier, engaged in the automotive industry since the 1960s and producing stamped metal components, exhaust systems and heat shields.

Morocco is a founding member of the EBRD and became a beneficiary of Bank resources in 2012. To date, the EBRD has invested more than €4.7 billion in the country through 105 projects.