Renault increases share in SOMACA capital to 54%

The French car group, Renault, increased its share in the capital of the Moroccan car-assembling company (SOMACA) from 34% to 54% for a value estimated at 4.5 million Euros.

Through this operation, Renault acquires the total shares of the Italian group, Fiat-Auto-SPA in the capital of SOMACA, said the release.

In 2003, Renault group bought over the state-owned 26% shares.

SOMACA will start manufacturing economical "Logan 90" cars in June in line with a convention signed with Moroccan authorities in 2003.

"Logan Maroc" project will produce 30,000 units per year, half of them will be exported to countries with which Morocco signed or will sign Free-Trade Agreements.

Alongside the "Logan" project which is estimated at 30 million Euros, "Renault Maroc" will create a national storehouse for cars spare parts distribution estimated at 3 million Euros.

"Renault Maroc" sold 11,352 units in 2004, a record number for 30 years, while the company's sales developed by 36% in 2004 compared to 2003.

Renault aspires to sell 4 million units in 2010 worldwide.