Tangier, Sept. 3 - The Renault-Nissan carmaking alliance is due to build a Euro 600Mn-plant in the Tangier Free Zone to make 200,000 cars by 2010, with the possibility to raise this capacity to 400,000.

In addition to the initial Euro 600Mn, the alliance is to put another euro 200 to 400Mn in the project, depending on the vehicles produced, which will place the plant as a "global strategic platform for the production system of the Renault-Nissan alliance" and the biggest in the Mediterranean region, head of the alliance, Carlos Ghosn told the press.

The project, whose Memorandum of Understanding was signed Saturday during a ceremony chaired by King Mohammed VI, is expected to create some 6,000 direct jobs and about 30,000 indirect positions. It will produce Renault’s low-cost Logan car, in addition to commercial vehicles for Renault, Dacia and Nissan, 90% of which will be exported.

Mr. Ghosn said the plant will contribute significantly to Morocco’s growth objectives set for 2015 part of the "Emergence Plan." It’s a view that was shared by Morocco’s PM, Driss Jettou who stressed that "this project will undoubtedly be the best achievement of the industrial sector in Morocco."

He ensured the government will provide all the necessary conditions to succeed this venture, including infrastructures and the creation of a training center in Tangier, in partnership with the alliance, for top-level training in the car industry.

The two parties are to sign a general agreement by the end of 2007.