Morocco is providing incentives that reportedly cover up to 30% of Safran's capital expenditures. The government is also assisting Safran in establishing aerospace training programs to support the new facilities. The investment is part of the development of Casablanca's Midparc industrial zone, which is expected to contribute to Morocco's broader economic growth.
Safran is a 50/50 partner with General Electric Aerospace in CFM International, which produces LEAP engines for several aircraft, including the Airbus A320neo, Boeing 737 MAX, and COMAC C919. The decision to open a facility in Morocco is intended to reduce Safran's concentration risk in France and help address bottlenecks in engine production amid high demand for narrowbody aircraft.
In a statement published by Reuters, Safran chairman Ross McInnis said, "This will be Safran's only assembly line outside France and will be ready in 2028."
The assembly line, costing $200 million, will support the rapid entry into service of LEAP-1A engines for Airbus A320neo operators worldwide. The MRO facility, with an investment of over $120 million, will handle more than 150 engine shop visits per year, aiming to improve turnaround times for overhauls. Once fully operational, Morocco is expected to supply about a quarter of Safran's LEAP engine output for Airbus.
The new facility's location near two Casablanca airports and technical institutes offers logistical advantages and access to specialized training. The phased opening, with the MRO facility starting in 2027, is designed to create an integrated build-and-service operation from the outset. Localized MRO services are expected to reduce turnaround times and shipping costs for airlines and lessors.
Safran anticipates that the Moroccan facility will enhance its scale, resilience, and profitability. The additional assembly line is intended to mitigate operational and political risks while providing surge capacity for Airbus's production ramp-up. Morocco's incentives and lower operating costs are expected to improve the project's financial returns.
By co-locating assembly and MRO operations, Safran aims to achieve faster turnaround times, reduced logistics costs, and increased aftermarket revenue in Africa, Europe, and the Middle East. The new site is also expected to expand Safran's talent pool and create supplier clustering effects, helping to stabilize cash flows as demand for engine maintenance grows.
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