Casablanca – The German automotive supplier Benteler has officially begun construction of a new factory in Kénitra, Morocco, marking a major milestone in expanding its global production footprint and bolstering Morocco’s growing status as a strategic automotive manufacturing hub. The groundbreaking ceremony took place on June 24, 2025, with the presence of Morocco’s Minister of Industry and Trade, Ryad Mezzour, Matthias Siemer, Chairman of Benteler Automotive Components Europe, and other industry and governmental officials.

Strategic location and infrastructure

The new factory is situated within the Atlantic Free Zone in Kénitra, approximately 50 kilometers north of Morocco’s capital, Rabat. Spanning 50,000 square meters of land, with 17,000 square meters of built production space, the site benefits from excellent infrastructure, including immediate access to the Kénitra highway and a direct connection to the Tanger-Med port—the largest port in Africa and a key logistics hub for exports to Europe and beyond.

Morocco’s geographic position at the crossroads of Europe, Africa, and the Middle East, combined with its sophisticated transport infrastructure, makes it an attractive location for automotive production. These logistical advantages help reduce costs and delivery times, essential factors in the highly competitive automotive supply chain.

Investment, employment, and economic impact

Though Benteler has not disclosed the exact amount invested, industry sources estimate it involves tens of millions of dollars. The factory is expected to create over 300 direct jobs and generate hundreds of indirect jobs along the local supply chain and service sectors.

Minister Ryad Mezzour highlighted the significance of the project for Morocco’s industrial ambitions: “Benteler’s investment is a strong endorsement of Morocco’s growing automotive ecosystem, which benefits from a skilled workforce and competitive industrial capabilities. This project consolidates Morocco’s position as a leading industrial and technological platform, attracting major global players.”

Manufacturing focus and advanced technologies

Benteler’s plant in Kénitra will produce high-value automotive components, including front and rear bumpers, rear torsion beam axles, bumper reinforcements, and suspension arms. These components are critical for vehicle safety and performance and are destined for leading automotive manufacturers worldwide.

To meet strict quality and efficiency standards, the factory will employ cutting-edge manufacturing equipment, including a 3,200-ton cold stamping press, advanced multi-process welding stations, cathodic dip coating (CDP) lines for corrosion resistance, and 3D laser systems for precise fabrication. The integration of such technologies highlights Benteler’s commitment to innovation and quality.

Additionally, the plant is designed with sustainability in mind, aligning with Benteler’s broader corporate goals to reduce environmental impact by incorporating energy-efficient processes and leveraging Morocco’s increasing reliance on renewable energy sources.

Benteler’s global strategy and “local-for-local” model

Matthias Siemer, chairman of Benteler Automotive Components Europe, emphasized that the “local-for-local” production approach enables the company to manufacture components close to its customers, enhancing delivery flexibility and reducing supply chain risks. “Morocco offers a modern industrial environment with a strong automotive sector, excellent logistics, and abundant renewable energy potential,” he noted.

Benteler, established in 1876 and headquartered in Salzburg, Austria, with German roots, is a global leader in automotive technology and mechanical engineering. With over 70 production sites in about 30 countries and more than 25,000 employees worldwide, Benteler specializes in innovative solutions that support the transition to sustainable and lightweight mobility—a critical trend as the automotive industry moves toward electrification and environmental compliance.

Morocco’s expanding automotive industry and regional ambitions

Morocco’s automotive sector has witnessed rapid growth over the past decade, becoming the country’s leading export industry. With production exceeding 700,000 vehicles in 2024, Morocco hosts major manufacturers such as Renault, PSA Group (now part of Stellantis), and a growing network of Tier 1 and Tier 2 suppliers.

Government policies, including tax incentives, free trade agreements, and investment in training centers, have nurtured an ecosystem that attracts foreign direct investment. The country also aims to become a regional leader in electric vehicle (EV) manufacturing and advanced automotive technologies, capitalizing on global shifts in mobility and climate policies.

The Tanger-Med port complex and industrial zones like the Atlantic Free Zone provide an ideal platform for export-oriented manufacturing, with easy access to European markets and beyond.

Outlook and broader implications

The Benteler factory is slated to begin production in 2026, strengthening Morocco’s reputation as a reliable and competitive manufacturing base capable of supporting global automotive supply chains. This project not only provides economic benefits but also facilitates technology transfer, skills development, and industrial diversification.

As the automotive sector embraces electrification, digitalization, and sustainability, investments like Benteler’s underscore Morocco’s potential to become a pivotal player in the evolving global automotive landscape.