Morocco, India's Tata Group Sign Landmark Defense Production Agreement

27 September 2024 Printable Version

Rabat - In implementation of the Very High Directives of HM King Mohammed VI, Supreme Commander and Chief of General Staff of the Royal Armed Forces, aimed at modernizing and strengthening the operational capabilities of FAR and thus promoting national autonomy and sovereignty, particularly in defense mobility equipment, the National Defense Administration and Tata Advanced Systems Limited (TASL), a subsidiary of the international conglomerate Tata Group, have signed a strategic partnership aimed at locally producing the Wheeled Armoured Combat Vehicle WhAP 8x8, in TATA Advanced Systems Maroc (TASM).

According to a press release from the National Defense Administration, this project also strengthens the historical ties between Morocco and India, two emerging economies whose strategic cooperation in the defense sector is growing.

The investment agreement, which provides for financial, tax and customs incentives, was signed by the Ministers representing the Departments of National Defense, Interior, Finance, Industry and Investment, in the presence of representatives of the FAR General Staff and the Moroccan Agency for Investment and Export Development (AMDIE), the same source said.

This project comes to meet local demand and export to foreign markets, the press release notes, adding that this echoes the ambition of Morocco and TASL to jointly develop South-South cooperation and create a regional hub for the production of defense mobility equipment.

It aims to make Morocco a defense development hub and opens up promising prospects for investors interested in defense and high-tech sectors.

This partnership is part of a broader momentum of developing the defense industry in Morocco, with the objective of gradually building strategic autonomy, the press release notes, adding that the plant will benefit from local supply sources, supporting the Kingdom's industrial ecosystem and creating new employment opportunities.

TATA Advanced Systems Limited, already recognized for its global expertise in the manufacturing of defense systems, becomes one of the first international players to invest in Morocco in this sector. This project not only contributes to meeting local needs, but also aims to make Morocco an emerging regional player in the defense industry, underlines the same source.

The project is expected to have a significant economic impact, creating 90 direct jobs and 250 indirect jobs, while fostering local sourcing and integration into Morocco’s industrial ecosystem. Initially, the local integration rate will stand at 35%, rising to 50% as the project matures over its 36-month development period.

Investors can expect promising prospects, driven by the growing demand for defense vehicles and by TASL's involvement in an integrated production model. This strategy benefits from the advantages of an efficient local sourcing and the availability of a qualified workforce, the press release concludes.