German automotive supplier, LEONI Cable Solutions has broken ground on a new production facility in Morocco, marking its first industrial plant in Africa and deepening the kingdom's role in the global automotive supply chain.

The company is investing about €60 million ($68 million) in the facility at the Kenitra Free Trade Zone, also known as the Atlantic Free Zone.

The plant will manufacture single-core and multi-core automotive cables, including data transmission cables used in advanced driver assistance systems and next-generation autonomous driving technologies.

The investment comes as Morocco has displaced South Africa as Africa's most industrialised economy, according to the African Development Bank's 2025 Africa Industrialisation Index. The shift was driven by Morocco's industrial upgrading, export diversification and state-backed manufacturing policies, with automotive and aerospace among the sectors anchoring its rise.

For Leoni, the project places the company closer to a fast-growing automotive ecosystem that serves European and international markets. It also supports Morocco's push into higher-value manufacturing as global carmakers demand more advanced components for electric, connected and automated vehicles.

The groundbreaking ceremony brought together representatives from Morocco's government, regional authorities, the Kenitra Free Trade Zone, business leaders, service providers and other partners involved in the project.

"This project represents far more than the construction of a new building – it is a clear commitment to innovation, partnership, and sustainable growth," said Markus Thoma, CEO of LEONI Cable Solutions, during the ceremony. "Morocco has become a key hub for the automotive supply industry. We are proud to continue this journey together with our Moroccan partners."

Morocco's Industry and Trade Minister Ryad Mezzour said the project supports the country's plan to build more advanced industries.

"The establishment of this new industrial facility, dedicated to manufacturing components for next-generation vehicles, fully aligns with the country's ambition to strengthen a high-value-added, technology-driven industry. It reflects Morocco's determination to anticipate the transformations shaping the mobility of tomorrow while continuously enhancing local skills and expertise," Mezzour explained.

Production at the new facility is expected to begin in mid-2027, with Leoni initially planning to employ about 90 people before expanding the workforce to roughly 200 at full capacity. The plant will be built on a 48,000-square-metre site and will include 18,000 square metres of industrial and office space, while another 9,000 square metres has been reserved for future expansion.

Leoni said the facility will also include a laboratory for testing and quality control, helping the company meet international automotive standards as demand grows for data-driven and next-generation vehicle components.

The project comes as China's Luxshare-ICT tightens its grip on Leoni AG after raising its stake in the German cable and wiring systems manufacturer to 74.9% in April 2026, while Austrian entrepreneur Stefan Pierer retained a 25.1% minority stake.