Morocco's Ynna Holding has opened a steel plant and ceramic factory at a total cost of 2.0 billion dirhams (USD235 bln approx.).

Ynna Chairman Miloud Chaabi had issued the threat early last year, saying the investment environment in Morocco was giving an unfair advantage to his firm's competitors.

The government, which is striving to spur local and foreign investments, had rejected Chaabi's allegations about the business climate.

Ynna's interests have spread beyond the family's small construction operation started by Chaabi 62 years ago, into a diversified business that includes real estate, retailing, energy and tourism.

The newly-opened steel and ceramic plants are located in the town of Berrechid in the Chaouia Ouardigha region outside Casablanca.

The steel plant has a capacity of 400,000 tons per year and cost 1.6 billion Moroccan Dirhams to build. The ceramic factory was built at the cost of 400 mln dirhams to produce 7 mln square metres of tiles annually.

Ynna said it plans to double the output capacity of the steel factory next year and to expand the ceramic factory to 15 mln square metres of tiles a year.

Supplying construction materials is a growth sector in Morocco because Morocco has a shortage of about 1 mln housing units, which the government is seeking to address by eradicating slums and rebuilding historic Casbahs.

1 USD = 8.5 MAD

Source: Reuters