EBRD strengthens motor industry in Morocco
The European Bank for Reconstruction and Development (EBRD) is continuing to support the automotive industry in Morocco through a €15 million loan to Varroc Lighting Systems Morocco that will provide training and employment opportunities for young people in the country.
The EBRD’s financing will allow Varroc Engineering to supply the Tangier Renault factory and the Peugeot PSA plant in Kenitra, as well as other companies such as Volkswagen and SEAT. The project also includes the establishment of an engineering centre and laboratories.
In addition, 100 jobs, including engineering posts, will be created between 2020 and 2026, and several hundred young people will receive vocational training to develop the required skills. This is in line with the government’s efforts to increase the rate of regional integration to 60 per cent by 2020.
This loan is the second after a €16 million provided in 2018 to finance the establishment of the company in Morocco.
Founded in 1990, Varroc Engineering is a major player in the automotive lighting systems industry. It posted a turnover of €1.8 billion for 2019, has offices in 17 countries and 41 first-class production centres.
Morocco is a founding member of the EBRD. Since 2012, the Bank has invested over €2 billion in the country across 43 projects. The Bank has also given technical assistance to more than 600 local companies.