(Adds details and background)
CASABLANCA, July 4 (Reuters) - Canada's Linamar Corp
LNR.TO will build a 2.7 billion dirhams ($280 million) plant
in Morocco to make engine parts, Morocco's industry minister
said on Monday.
Moulay Hafid Elalamy said U.S. auto parts maker Delphi
DLPH.N will also launch a new factory making electrical
distribution systems and a research and development center in
the North African kingdom.
Morocco expects auto industry exports to reach an annual 100
billion dirhams ($10.2 billion) by 2020 as a result of PSA
Peugeot Citroen starting production at its new 557 million euro
($630 million) factory.
Peugeot SA PEUP.PA unveiled its plan last year to build
the 200,000-vehicle capacity plant, following up rival Renault
SA RENA.PA , which has two factories making fully assembled
cars in the kingdom.
The Moroccan government aims to lift the overall industrial
component of gross domestic product (GDP) to 20 percent, up from
16 percent, reaching around 500,000 jobs by the same period.
Unlike many countries in the region, Morocco managed to
avoid a big drop in foreign direct investments in the wake of
the global financial crisis and the Arab Spring uprisings of
2011, partly by marketing itself as an export base for Europe,
the Middle East and Africa.
Linamar's plant will start by supplying engine parts to the
new Peugeot factory before expanding to new plants that should
open soon in Morocco.
"Delphi's investment is huge, some seven projects including
a plant and a research and development center, but I can't
disclose the investment amount," the Moroccan industry minister
told reporters.
The minister was speaking at a press conference where he
announced Morocco's new investment charter to boost the
country's emerging industry.
Delphi was the first auto parts maker to open units in
Morocco in 1999, and has three operating plants employing around
12,000 workers.
The Moroccan government sees the country's GDP growing by
less than 2 percent in 2016, slower than an estimated 5 percent
in 2015 as agricultural output fell from an exceptional 2015.
However, non-agricultural activity will increase by 2.3 percent
in 2016, after 2.5 percent growth in 2015.