Economy

The repercussions of Corona

push Spanish clothing companies to rely on Morocco

At a time when the world is still living under the effects of the “Covid-19” pandemic, especially at the level of international shipping traffic, Morocco has imposed itself in a “qualitative” way in the textile sector, as it seemed to be among the regions that European companies, especially Spanish, relied on. In order to secure its clothing needs in a short period of time and at competitive prices.

The Spanish company «Inditex», which remains responsible for the production of a number of well-known clothing «brands», indicated that it achieved growth over the past year of 10.4 percent, in addition to a 30 percent increase in net profit, which it attributed to its reliance on… A number of suppliers, including India, Turkey, Morocco, and Pakistan, while reducing its dependence on the Chinese supplier.

The Spanish group has investments in Morocco in the textile sector, which allows it to benefit from the labor force it provides, which remains experienced and inexpensive, in addition to benefiting from the geographical proximity to Spanish territory, which contributes to its response to the demands it receives from its international customers.

Economic observers stated that Morocco has become a destination for a number of European companies active in the field of textiles that are looking to benefit from the capabilities and opportunities it provides, at a time when the international maritime shipping chain has been affected, pointing out that “leadership in the region is still far-fetched given the presence of a Turkish giant reaching… Its integration rate is 100 percent, while Morocco is still dependent on the international market for raw materials.”

Mohamed Jadry, an expert in the field of economics, said, “The Corona pandemic has created a new economic reality that is mainly linked to the search for nearby, safe and inexpensive supply chains, as the Red Sea crisis has currently deepened the global shipping crisis, and therefore European companies have begun to adopt a new policy aimed at bringing… Sources of supply and reducing production costs, which are the opportunities that Morocco offers from its location.”

Jedri explained, in a statement to Hespress, that Morocco “wants to regain its health in the field of textiles and clothing manufacturing, at a time when it has been able to impose itself as a destination for foreign investments, given the guarantees it provides regarding the available experienced workforce and low production costs, in addition to the commitment to deliver orders within «As soon as the high inflation rate began to affect Turkey’s competitiveness at this level globally

The spokesman stated that “the Kingdom is betting on repositioning itself at the level of global production in the field of leather and clothing, a bet that is reinforced by the foreign interest in investing in it, given the advantages it has,” pointing out that “a number of European companies have begun to localize their branches in nearby countries.” From the old continent, including Morocco, which will reflect positively on the national economic cycle.”

For his part, economic analyst Yassin Alia said, “The textile sector constitutes one of the elements on which the industrial acceleration policy in the Kingdom focuses, as the boom it is recording is linked to the economic conditions left by the Corona pandemic at the level of maritime shipping in particular, something that actors in the field in the world became aware of through… Their attempt to bring the sources of supply closer together.”

Alia confirmed, in a statement to Hespress, that “textile players in Europe were affected by disruptions in supply chains coming specifically from Southeast Asia, including China, which affected the cost of maritime transport, which reached record levels, which opened the way for Morocco to emerge as an incubator.” For European investments in this field, given that it is close to the European market and provides the product at low costs.”

The spokesman stated, “Morocco is currently competing with Turkey in the Mediterranean region, where the rate of integration into Ankara remains about 100 percent, while the Kingdom has not yet reached this rate given that it still imports the raw raw materials needed for production, and also imports various equipment that “You need it in this regard.”

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