Spanish Settavex to invest $71.4 million in Moroccan textile sector

The Spanish textile company Settavex signed, here Thursday, with the Moroccan government an accord providing for 634 million Dhs ( $71.4 million) investment in the textile sector.

The accord will allow the group to increase its weaving capacity to 21 million linear meters per year and its finishing capacity to 26 million meters.

The Spanish group, already set up in Settat (near Casablanca), is leader in the Moroccan market with a share of 45 percent.

The investment program, to extend on three years, also consists of the establishment of a new co-generation engine.

The Moroccan party commits under the accord to exonerate the company of customs for equipment and tools, bring contribution to investments' promotion fund for external infrastructure, in addition to a contribution of Hassan II Fund for Economic and Social Development to purchase equipment.

This investment will allow the increase of Morocco's offer and improvement of its standing in the Euro-Mediterranean space, said Moroccan Industry, Trade and Economy Upgrading Minister, Salaheddine Mezouar.

"Thanks to this investment, and that of the Italian company Legler, Morocco can become the 2nd main supplier of producers in the Euro-Mediterranean space in jeans and sports wear tissues," he said.