The industrial complex project in Mohammedia announced in February 2006 by Said Tanta, CEO of A2S Industries and initiator of the project, has taken national dimensions with the involvement of Salaheddine Mezouar.

Minister of Finance who held the post of Minister of Industry at the time of the Jettou government, and now Ahmed Chami, Minister of Commerce, Industry and New Technologies with the support of the Association of the Electronic Sector (ASEL), affiliated to the National Federation of Electricity and Electronics (FENELEC) represented by its President M. Lasry, Mr. A. Zouhir, president of the group SOFMAG and AZIM (Association of the Industrial Zone of Mohammedia).

Since then, ministries and regional and local authorities have invested in the project. Today, four companies (A2S industries, Adetel Group, Stequal Group, Zenith foundry) were involved in the establishment of GIE GE3 M - an electronics, mechatronics and mechanical grouping of Mohammedia and four other national and international companies are in talks to join the dynamic now under way.

Regarding the first cluster in Morocco to file a formal request for labelling with the Ministry of Commerce, Industry and New Technologies, an avant-garde approach has been accepted. The use of a consulting firm, like Lead Consulting in this case, was necessary. A framework agreement was signed between the GE3M, MED-Z, the town of Mohammedia and the government in September 2007 and several meetings were held to mobilize all participants in this project. In 2008, taking advantage of the momentum and the credibility gained, GE3M takes in charge the implementation of the initiative of the "Electronic City" in the south-west of Mohammedia. The Electronic City is a national project. It is part of the Emergence Plan implemented by the Ministry of Commerce and Industry.

This initiative brings together the economic and political spheres. The government looks very closely at the sector of electronics and mechatronics. The draft implementation of the "Electronic city" will be conducted in close collaboration with the urban municipality of Mohammedia, MED-Z, and GE3M. The project, which will create several hundred jobs, will have a significant impact on both the economic activity of Mohammedia and all the adjacent areas north of Casablanca. At the same time, it will lend momentum to other sectors in direct or indirect link with electronics and mechatronics. It will also allow the city to expand its capacity for entrepreneurship and investment, while providing access to new skills and developing new businesses to global standards.

The choice of Mohammedia can be explained by its ability to host companies specializing in these businesses and by an already existing favorable industrial context. Two major categories of activities are particularly present: those related to electronic development and other related to mechatronics. "It is expected that we benefit from outsourcing electronic and mechanical engineering, plastic injection, finishing, cutting and foundry industries…," said Said Tanta. The project will be implemented in two phases. The first will cover an area of 34 000 m2 which may extend to 54 000 m2.

The overall investment cost of the first phase is estimated at more than 168 million Dhs. The number of permanent jobs created during the first phase is estimated at 1 000. Mr. Atouani, president of the town of Mohammedia, gave its approval for the immediate land transfer to MED-Z who will begin the construction work ending on 2009. The second phase spreads over 30 hectares and its deployment will naturally benefit from the presence of GE3M which will provide its expertise in the field. Said Tanta emphasizes on the active involvement in this project of the ministry represented by Mr. Semmar and its desire to see this project succeed as quickly as possible.

The creation of a project of this magnitude will help emerge and develop a new generation of electronic subcontracting where the subcontractor will be responsible for design, industrialization of products and procurement of raw materials and components. Finally, in terms of international marketing, the project gives a clear positioning to Mohammedia in the field of electronics and mechatronics. According to Mr. Tanta, synergy and partnership are the watchwords that led to the development of this project.

Moreover, the combination of different companies in the same division will help better penetrate the European market including the sharing of mechanical engineering and electronics processes as well as the optimization of common services (marketing and export prospecting, logistics, customs, group purchases of raw materials, staff transport, restaurant and, possibly, administration, accounting, information system,…). The goal: to anticipate the needs of the major providers; enhance the provision of subcontracting towards industrialization and design; build the first manufacturing pole of components and mechatronic and especially to create a favourable industrial environment in order to encourage major donors to settle  in Morocco.

According to Mr. Tanta, the success of this project will only be ensured by the installation of complementary technologies –mainly non-competing ones such as foundry, surface treating, cutting and plastic injection. In addition, certain strategic actions of rapprochement with foreign clusters have identified a significant number of partnership agreements and twinning waiting to be put in place. This will allow the cluster of Mohammedia to build an industrial showcase able to ensure its visibility abroad in line with its objectives. Indeed, because of strong global competition only subcontractors who have planned to profit from the transfer of their providers’ strategic activities such as design, industrialization, procurement, may survive. According to the research firm iSuppli, the market for design subcontracting could increase by 22% per annum in the next four years, while the overall electronics subcontracting market will increase by only 11% per annum.
Traditional and isolated subcontractors will find it difficult to keep pace. However, many aid solutions, usually driven by ANPME (the National Agency for the promotion of small and medium enterprises) already exist, as FOMAN (upgrading Fund), PAE (Entreprise Support Programme), GTZ (German Cooperation), UNIDO, MCA (U.S. programme), etc. to allow all businesses to organize reconciliation, cooperation and gain competitiveness.

 
The sector in figures
The production of electronic equipment in Europe reached a turnover of around 240 billion Euros, or 2 640 billion DH. The number of companies operating in the sector amounts to 45 853. The numbers of employees is around 1 004 908, according to a 2005 study by the research firm iSuppli. According to the same firm, Europe is in a strong position in these sectors with 44% of global production.

This is an opportunity for Morocco which could, once the “Electronic City” is created, attract some of these businesses to the kingdom.
By Abderrahman Ichi | LE MATIN