TANGIERS, Morocco (AP): Renault-Nissan signed a preliminary agreement with the Moroccan government Saturday to build a manufacturing complex in northern Morocco with a capacity of 400,000 cars a year.
The France-based carmaker and the North African kingdom will conduct a feasibility study for the plant in the Mediterranean port of Tangiers, according to a statement from Renault and Morocco's state news agency MAP.
Renault-Nissan plans to invest a total of euro600 million (US$822 million) in the project. The complex would create 6,000 jobs and have an initial capacity of 200,000 vehicles a year in 2010, before expanding to 400,000, the company said.
The factory would make low-cost Logan sedans and other cars for Renault, Nissan and Romanian affiliate Dacia, geared primarily for export.
Moroccan King Mohamed VI presided over the signing ceremony between Renault-Nissan CEO Carlos Ghosn and Moroccan Prime Minister Driss Jettou in Tangiers, MAP said. Ghosn visited Morocco in June for talks with the king and government ministers involved in the project.
The complex is planned to be located in a special industrial zone of Tangiers and will utilize the city's Tanger Med port. Moroccan officials expect a firm contract to be signed for the plant later this year.
Renault already produces or plans to produce Logans in Romania, Columbia and India.
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