Safran plans to set up a new production facility for Airbus engines in Morocco
Safran (SAF.PA), a French aerospace company, announced agreements with Morocco on Monday to establish a new maintenance and repair facility close to Casablanca, new tab jets, and a new engine assembly line for Airbus (AIR.PA).
In an attempt to emulate its success in auto production, Morocco has attracted aerospace suppliers in recent years by establishing hubs to streamline supply chains and exchange knowledge.
In order to create the assembly line, Safran will invest 200 million euros ($231 million), which would provide 350 LEAP-1A engines a year, or 25% of the company’s output related to Airbus, according to Chair Ross McInnes.
McInnes declared, “This will be Safran’s only assembly line outside France and will be ready in 2028,” after King Mohammed VI presided during a signing ceremony.
Together with GE Aerospace (GE.N), Safran co-produces LEAP engines and launches a new tab through their CFM International business. The Boeing 737 MAX’s LEAP-1B is the only engine, while the LEAP-1A opens a new tab to power the Airbus A320neo and competes with Pratt & Whitney (RTX.N). The COMAC of China uses a third version, the LEAP-1C, for the C919.
Morocco was picked in part because of its “economic stability,” according to Olivier Andries, CEO of Safran, a largely state-owned company, in a phone interview. France is now experiencing a budget crisis, so his remarks are sure to strike a chord in France.
Morocco, where Safran currently operates a number of plants, has a highly skilled labor force, and the expansion is a component of attempts to make Safran’s supply more resilient, he continued.
Almost all Airbus LEAP-1A engines have up till now been supplied by Safran’s Villaroche plant outside of Paris, which has the potential to produce up to 1,000 engines annually divided among three lines.
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According to McInnes, the 120 million euro maintenance and repair facility will be operational in 2027 and have a capacity of 150 engines per year.
Following a visit to Morocco by French President Emmanuel Macron last year, the most recent investments follow larger corporate agreements, strengthening ties after years of strain.
According to Industry Minister Ryad Mezzour, “Safran’s new investments place Morocco among the few countries capable of producing complete aircraft engines,” with the hope that the new facilities would draw in more suppliers.
Morocco is Africa’s second industrialized country and boasts one of the continent’s most diverse economies.
The aerospace industry in Morocco employs 25,000 workers across 150 companies. Its exports increased from 21.8 billion dirhams in 2021 to 26 billion dirhams ($2.8 billion) in 2024.
“Safran’s plants will help Morocco double its aerospace industry exports,” the minister of industry stated.
Morocco provides incentives to investors that can cover up to 30% of capital expenditures. These advantages include access to real estate in specialized industrial zones like Midparc, where Safran will set up shop close to Casablanca’s airports.
It was reported by Reuters that “84% of operators in the aerospace sector are foreign investors,” according to Employment Minister Younes Sekkouri.
Morocco wants to train 10,000 new talent, especially in high-tech sector divisions, by 2030, he said, adding that the country has seven aerospace vocational training facilities.
In Morocco, where Royal Air Maroc is currently updating its fleet, Boeing (BA.N) is one of the aerospace firms that has historically led aerospace investments.
