(Ecofin Agency) - Chinese car manufacturer Nanjing Xiezhong signed on July 14, a letter of intent with the Moroccan public development and industrial housing to establish in the Kenitra free zone a plant.

The plant which will be built near the future site of French firm PSA Peugeot Citroën will require a €14 million investment. “The plant which will extend over 34,000 m² will manufacture cooling systems. It will need an investment of 150 million dirham (about €14 million) and employ 120 people once operational,” said MedZ in a statement.

According to the Moroccan group which is in charge of most of the Kingdom’s free zones, Nanjing Xiezhong Auto-Airconditioner is a subsidiary of the Xiezhong International group, which is detained by public firm Beijing Automotive and private investors.

At the beginning of July, PSA Peugeot Citroën announced it would soon start building its Kenitra plant. The French car manufacturer should invest a total of €557 million in the site which should have an initial capacity of 90,000 cars.