Spain's Industrial Exodus: Over 360 Firms Shift Production to Morocco

In a significant industrial migration, more than 360 Spanish companies have transitioned their production facilities to Morocco, according to a recent report by Maghreb Online. This information, sourced from the Spanish Institute of Exports and Investments (ICEX), highlights a growing trend among Spanish businesses seeking to adapt to European Union policies and capitalize on emerging opportunities in North Africa.

The relocation phenomenon, initially reported by Spanish media outlet Vozpópuli in February 2024, encompasses a diverse range of industries. While some firms have completely transferred their operations, others have opted for establishing subsidiaries or forging partnerships with Moroccan enterprises.

This strategic shift is largely motivated by the streamlining of customs procedures and the potential for substantial cost savings. Estimates suggest that Spanish companies could save up to 100 million euros in customs duties once Morocco eliminates tariffs on 70% of agricultural and fisheries imports.

The agri-food sector represents approximately 10% of the relocating companies, with prominent names such as Ebro Foods (known for brands like Brillante and SOS) and Borges (a major player in the nut industry) leading the charge. An unnamed Spanish source with close ties to Morocco's business community told EFE, "There is a growing interest among Spanish companies in investing or opening subsidiaries in the Maghreb country."

Perhaps the most notable participant in this industrial migration is Inditex, the Spanish multinational clothing company. Inditex sources explained that the move to Morocco "allows us to respond to demand and adapt to new social and environmental standards quickly and efficiently." They emphasized the importance of proximity in their supply chain strategy, stating that it "allows us to respond quickly to the market." The company reports that its operations in Morocco indirectly employ nearly 95,000 people.

The implications of this shift extend beyond individual companies. Spain has solidified its position as Morocco's primary trading partner, outpacing both France and China in terms of exports and imports. In 2021, Spanish exports to the North African nation reached an unprecedented 9.5 billion euros, underscoring the growing economic ties between the two countries.

This trend is not limited to Spanish firms. Other European companies are also recognizing the benefits of relocating to Morocco. French automotive manufacturer Renault and Dutch-based Stellantis have both established headquarters in the country, further cementing Morocco's status as an attractive destination for European industrial investment.

As this industrial migration continues to unfold, it is reshaping the economic landscape of both Spain and Morocco. The long-term effects of this shift remain to be seen, but it is clear that Morocco is emerging as a key player in the Mediterranean industrial scene, while Spanish companies are adapting to new realities in an ever-changing global market.