Morocco could become an even bigger defence production base for one of India’s most profitable companies

The Indian aerospace, military engineering, and defence technology company, Tata Advanced Systems Limited (TASL), is currently evaluating the feasibility of expanding its operations in Morocco.

• Tata Advanced Systems Limited (TASL) is considering expanding its defense manufacturing operations in Morocco.
• Tata already produces WhAP 8×8 armoured vehicles in Morocco and may add the Light Armoured Multi-role Vehicle (LAMV) to its production lineup.
• The Moroccan facility aims to grow local component sourcing from 35% to 50%, promote skilled employment, and develop Morocco into a defense industry hub for Africa.
• Tata’s North African factory, a 20,000-square-metre site, is expected to create 90 direct and 250 indirect jobs.

The company, which is listed as the sole global supplier of the C-130J empennage (an aircraft stabilizer assembly), wants to expand its defense manufacturing activities in Africa’s largest manufacturing country.

Should the plan come to fruition, it would add to Tata’s existing operations in the North African country, where the company already manufactures WhAP 8×8 armoured combat vehicles at its plant in Berrechid, near Casablanca.

However, Tata has yet to officially confirm reports that it plans to produce the Light Armoured Multi-role Vehicle (LAMV) at the site, as seen in MoroccoWorldNews.

Known as Tata Advanced Systems Maroc, Tata’s Moroccan operation was set up in September last year as part of a strategic partnership between Morocco and India.

It was established to produce WhAP 8×8 vehicles for Morocco’s Royal Armed Forces, with the potential to supply other international customers, as Morocco slowly made its way to being the premier market in Africa for manufacturing.

Morocco’s National Defense Administration said the factory was initially expected to source 35% of its components locally, with the target rising to 50% as domestic suppliers build their capacity.

Beyond vehicle production, the project is intended to develop Morocco’s defence industry, create skilled employment and turn the country into a manufacturing and export hub for armoured vehicles, particularly for African markets.

The 20,000-square-metre facility, which stands as Tata’s first overseas defence production facility in North Africa, was projected to generate 90 direct jobs and a further 250 indirect jobs, according to official information released at its inauguration.

In the last year, Tata has made a couple of moves to expand its operations in Africa.

Tata operations across Africa in recent months

In September, Tata Motors, a subsidiary of Tata Sons, officially launched its €3.82 billion offer for Iveco, moving closer to bringing two companies with extensive truck, bus, and service networks in Africa under common ownership.

At the time, it was reported that Tata was offering €14.10 for each Iveco common share and ultimately intended to acquire 100% of the company and delist it from the Milan stock exchange.

Iveco’s largest shareholder, Exor, committed to tendering its 27.06% interest. Iveco’s board has also recommended that shareholders accept the proposal.

The transaction is principally presented as a combination of Tata’s strength in India and other emerging economies with Iveco’s larger European commercial-vehicle operation.

The broader ramifications for Africa, however, transcend the 14% of aggregated revenue anticipated from regions outside Europe, India, and South America.

However, over in East Africa, Kenya specifically, the company faced some policy-driven challenges as the country’s president, William Ruto, ordered Tata Chemicals, another subsidiary of Tata Sons, to end its operations in Kenya as part of his plan to eliminate small foreign businesses.