Embraer expands global footprint with new facility in Morocco

Brazilian planemaker Embraer has signed a preliminary deal with Morocco to invest in the nation's civilian and defence aerospace sector, including setting up a maintenance and repair plant, Morocco's industry ministry said late on Wednesday.

The new maintenance, repair and overhaul facility (MRO) is likely to boost Embraer's chances of winning a slice of a plane purchase tender launched recently by Moroccan airline RAM, a Moroccan industry source said, requesting anonymity.

RAM plans to quadruple its fleet to 200 within the next 14 years to strengthen its position as a carrier linking Africa to Europe and the Americas, RAM CEO Abdelhamid Addou said at the opening of the Marrakech Air Show, where the Embraer deal was sealed.

On Monday, airplane engine maker Safran signed a deal with the Moroccan government to build an MRO plant worth 130 million euros ($141.14 million).

Morocco's government has encouraged investment in the country by aerospace suppliers in recent years, hoping to match its success in car manufacturing, creating hubs to shorten supply chains and share expertise.

The country's 147 aerospace industrial plants make parts from cables to high-tech engine components, with exports totalling $2.2 billion last year, supplying global manufacturers including Boeing and Airbus.