Stellantis Launches First Middle East & Africa Vehicle Dismantling Centre in Morocco
By Nqobile Dludla
Stellantis Opens Vehicle Dismantling Centre in Morocco
JOHANNESBURG, May 6 (Reuters) - Stellantis has opened a vehicle dismantling centre in Morocco, its first in the Middle East and Africa region, as the owner of Peugeot and Jeep looks to tap the country's growing market for reused auto parts, it said on Wednesday.
Market Drivers and Environmental Impact
Rising prices and reduced availability of raw materials, as well as environmental costs to extract them, are pushing manufacturers and regulators to reuse and recycle more.
Centre Details and Operations
Investment and Capacity
Here are the details of the centre:
- Stellantis invested 1.6 million euros ($1.9 million) in the centre, which can dismantle up to 10,000 vehicles per year.
Global and Regional Reach
- Casablanca is Stellantis' third vehicle dismantling centre worldwide, after Turin in Italy and Sao Paulo in Brazil.
- The centre is designed to serve Morocco and West Africa.
Main Activities
- The site's main activities are sourcing end-of-life vehicles, dismantling, selling used parts and collecting parts for recycling.
- The dismantled parts will mainly be sold in Morocco.
Market Potential and Industry Context
Growth Projections
- The Moroccan market for reused parts could reach 5 billion dirhams ($544 million) by 2030, Jean Christophe Bertrand, senior vice president for Stellantis Middle East & Africa Parts and Services, told journalists.
- Morocco has around 4.7 million vehicles in use and more than 17,000 reach end of life each year, he added.
Business Opportunities
- "We have plenty of profit pools in the Middle East and Africa, and what we are doing in Morocco could be an opportunity to grow our business in many places," Bertrand said.
Automotive Industry Milestones
- Earlier this year, Morocco surpassed South Africa as the continent's largest vehicle producer.
Currency Exchange Rate
($1 = 0.8484 euros)
(Reporting by Nqobile Dludla. Editing by Mark Potter)
