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Supply Chain

Japan auto parts makers diversify supply chain to North Africa

Yazaki and others focus on Morocco away from Eastern Europe amid Ukraine crisis

Morocco has been keen to attract direct investments from Western auto parts makers.

TOKYO -- Yazaki and other Japanese auto suppliers are setting up production bases in North Africa to diversify their supply chains in the face of increasing geopolitical risks in Eastern Europe amid the Ukraine war.

Wire harness supplier Yazaki will pour 9 billion yen ($69 million) to raise output at its Morocco plants by around 25%. Of the fresh investment, 5 billion will be spent on building a new production facility in Meknes, in the north of Morocco. Yazaki will start construction of the Meknes facility this year and a new one in Egypt in 2023. The company will also increase capacity at its existing plants in Tangier and Kenitra.

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