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Varroc Lighting set to open in Morocco

Join Date: 2018-10-15

New Varroc Lighting Systems plant to open in Tangier, Morocco

Global auto parts supplier Varroc Lighting Systems has won €16m in funding from the European Bank of Reconstruction & Development (EBRD) towards its new plant in Morocco.

Located in the ‘Tangier Automotive City’ industrial park, the new 16,000m2 manufacturing and product development centre will start to produce vehicle headlamps and tail lights this year.

The operation, situated in Tangier’s economic free zone, is set to create 200 new jobs by the end of 2018.

The EBRD loan will enable Varroc Lighting Systems, an offshoot of the Indian-owned Varroc Group, to supply components locally to the Renault and PSA Group vehicle assembly plants in Kenitra, northern Morocco.

Last month, PSA Group announced it intends to double its annual production capacity in Kenitra to 200,000 vehicles in 2020 as a cost of €560m.

Varroc Morocco, an offshoot of the group’s Varroc Lighting Systems division which is based in Plymouth, Michigan in the US, will also export part of its plant output.

“The Morocco facility will support both local Moroccan growth as well as our customers in southern Europe,” said Stephane Vedie, president and chief executive officer of Varroc Lighting Systems.

Meanwhile, Varroc Lighting Systems is continuing to expand across Europe as part of a wider global growth plan. The company announced recently it expects to launch a new 1,500m2 product development centre for vehicle headlamps and signal lights employing 60 at Krakow in Poland by the end of this year.

It has also just opened a new 7,000m2 production hall to produce smart headlamps at the firm’s Rychvald in the east of the Czech Republic. The hall, the fifth production unit on site, will turn out vehicle rear lights as well as the smart headlamps with LED and Matrix technologies known as adaptive driving beam.

With the latest line operating, Rychvald site will have the capacity to produce one million lamps a year, according to the plant management. Varroc operates two other manufacturing sites in the Czech Republic.

Another recent Varroc deal in Europe is a joint venture agreement signed last month with the old established, privately-owned Romanian lighting and electronics specialist ELBA.

The joint enterprise, located in Timisoara, will enable Varroc to vertically integrate electronic parts manufacturing increasingly included in lighting systems today.

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