Ecofin Agency
Renault asked South Korean steelmaker Posco to settle in Morocco to supply steel for its operations, South Korean news agency Yonhap revealed on November 22, 2018, citing sources close to the case.
The same source added that this Request from Renault was aimed at diversifying its steel supplying sources.
For the time being, the French company depends solely on ArcelorMittal, the world leading steelmaker, for its steel. According to the sources cited by Yonhap, by settling in Morocco, Posco can use that country as “a gateway for its steel exports to Europe without [paying] customs tariffs as the North African country signed a free-trade agreement with the European Union”.
Those same sources revealed that Moroccan Maghreb Steel also asked Posco to invest in its development.
One of Posco’s spokesperson confirmed Renault’s request indicating that the South Korean group opted for a “report of the negotiations in that regard in view of market conditions”.
Late October 2018, Renault announced that it would double the production capacity of its Casablanca plant. This plant will be able to assemble 160,000 cars per year by 2022 against the 80,000 actually assembled. By doubling its Casablanca based plant’s assembling capacity, the French group will increase its assembling capacity to 500,000 in Morocco; 340,000 of which will be assembled in Tangier yearly.
