The French automobile producer Renault signed and agreement with Morocco authorities on Sunday regarding the setting up of a new car factory for Renault, Dacia and Nissan models. By 2010, the production is due to reach 400.000 units a year informs NewsIn.

According to the estimates, the investments will reach 600 million euro as the first part of the investments amount to 350 million euro.

Renault already has an important presence in Morocco where it produces the Dacia Logan model at a lower price.

The group said that t he new project will create almost 6.000 new working places and another 30.000 indirectly. Thus, Renault becomes one of the main employer of the region.

The Morocco factory will produce cheap cars under the Renault/Dacia symbol but also small Nissan models.

Almost 90% of the production will be destined for exports while the rest of the cars will be sold on the local market.

Launched in July 2005, Logan became the number one car in Morocco in the first six months of launching. In 2006, Renault sold more than 12.000 cars in Morocco.