Morocco is establishing itself as a crucial player in both the African automotive industry and regional recycling efforts. Stellantis, a multinational automotive manufacturer, recently inaugurated its first vehicle dismantling center in the Middle East and Africa (MEA) region on May 6. This state-of-the-art facility, located in Aïn Sebaâ and covering an area of 6,000 square meters, is capable of processing up to 10,000 end-of-life vehicles annually. This significant investment amounts to €1.6 million (approximately $1.9 million) and marks the third dismantling site operated by Stellantis worldwide, alongside facilities in Turin, Italy, and São Paulo, Brazil.
The opening of this center is expected to create around 150 direct and indirect jobs when fully operational. This initiative is part of Stellantis' broader circular economy strategy, which is implemented through its dedicated unit, SUSTAINera. The dismantling process involves collecting end-of-life vehicles from insurance companies, auction platforms, and specialized networks, allowing for the recovery of functional parts. These parts are then sold through the group's after-sales network as well as on digital platforms such as B-Parts, Distrigo, and Piyes. Notably, there is also a dedicated process for the traction batteries of electrified vehicles.
Jean-Christophe Bertrand, Senior Vice President of Stellantis for Parts and Services in the MEA region, indicated that the Moroccan market for reused parts could reach 5 billion dirhams, roughly equivalent to $544 million, by 2030. With nearly 4.7 million vehicles on the road and over 17,000 vehicles reaching the end of their life each year, Morocco is poised for significant growth in this sector.
The establishment of this dismantling center in Casablanca further underscores Morocco's industrial significance on the African automotive map. By 2025, Morocco surpassed South Africa as the continent's leading vehicle producer, achieving a historic production milestone of over one million units in a single year, according to national data. In contrast, South Africa's automotive industry faces challenges from Chinese competition and energy crises, exemplified by Nissan's recent sale of its historic Rosslyn plant to Chinese manufacturer Chery and Volkswagen's decision to place its Kariega plant under scrutiny.
For Stellantis, this dismantling facility complements its already robust Moroccan operations, which include the Kenitra industrial complex. An expansion announced for July 2025 will involve an investment of €1.2 billion, aimed at doubling production capacity and increasing the local integration rate to 75% by 2030. Additionally, the Africa Technical Center, also based in Casablanca, enhances their operations in the region.
Bertrand emphasized the numerous growth opportunities in the MEA region, suggesting that the operations in Morocco could serve as a development model for various markets. The Casablanca center is designed to cater not only to the Moroccan market but also to West Africa, where Stellantis aims to expand the value chain for spare parts. It remains to be seen how informal market actors, who have a longstanding presence in African cities, will adapt to the gradual industrialization of automotive recycling.
As reported by agenceecofin.com.
