Stellantis Invests in Sustainable Practices in Morocco
The automotive industry is undergoing a significant transformation as manufacturers and regulatory bodies increasingly focus on sustainability. Rising prices, limited availability of raw materials, and the environmental costs associated with their extraction are driving this change towards reuse and recycling. Stellantis, a global automotive leader, has made a notable investment of €1.6 million (approximately $1.9 million) in a new facility designed for the dismantling of up to 10,000 vehicles annually in Casablanca, Morocco. This facility marks Stellantis's third vehicle recycling location worldwide, following those in Turin, Italy, and São Paulo, Brazil.
Enhancing the Circular Economy in West Africa
The newly established center aims to serve both Morocco and the broader West African market. Its primary activities include sourcing end-of-life vehicles, dismantling them, selling used parts, and collecting components for recycling. The dismantled parts will predominantly cater to the Moroccan market, which is projected to see a booming demand for reused components, potentially reaching a market volume of 5 billion Dirhams (around $544 million) by 2030, as stated by Jean Christophe Bertrand, Senior Vice President for Stellantis Middle East & Africa Parts and Services.
With approximately 4.7 million vehicles currently in operation in Morocco, and over 17,000 reaching the end of their lifecycle each year, there is a significant opportunity for growth in this sector. Bertrand noted that the potential for revenue generation in the Middle East and Africa is substantial, and the operations in Morocco could serve as a model for expanding their business in various other locations. Additionally, Morocco has recently surpassed South Africa as the largest vehicle producer on the continent, further emphasizing the importance of sustainable practices in this rapidly growing market.
As reported by de.marketscreener.com.
