Akwel is planning a new factory in Casablanca as the French automotive parts maker cuts costs, closes a plant in Sweden and reduces its workforce in France. The company has bought land in a free zone in Casablanca for the new factory, according to its first-half 2026 financial report. Akwel has not yet given the investment value, construction date or expected production capacity.
The new factory will add to Akwel’s existing operations in the country. Its group structure already includes two fully owned companies, AKWEL Casablanca and AKWEL El Jadida Morocco.
Akwel makes equipment and parts for light and heavy vehicles. Its main activities cover three areas: fluid management systems, mechanical mechanisms and structural parts for electric vehicles, known as xEV components.
Its fluid management business includes coolant pipes, hoses, valves and sensors used to control temperatures in petrol, diesel, hybrid and electric vehicles. The company also makes fuel and oil lines, emission and vapour management systems, and windshield and window washing systems.
Its washing systems include tanks, pumps, tubes and spray nozzles. Some of these systems also support the cleaning of sensors used by advanced driver-assistance systems, or ADAS.
Other products include air-intake manifolds, clean-air ducts and cylinder-head covers with oil-vapour separation systems.
The company also makes door handles, including flush-fitting handles, door latches, hinges and locking systems for doors, bonnets and trunks. Its products include pedal sets and other mechanical parts inside vehicles.
For electric vehicles, Akwel makes cooled battery trays, reinforced battery protection pans and module boxes. These parts help manage heat and provide electromagnetic shielding.
The company also makes housings for power electronics, junction boxes, high-voltage cable brackets and battery control units.
The Casablanca project comes as Akwel is reducing its industrial footprint in Europe.
Akwel started a collective voluntary departure programme in France in March 2026. The plan could affect 50 jobs across seven sites.
The company also announced in June that it would close its Varberg plant in Sweden and move its production elsewhere. The move forms part of a wider effort to reduce its number of sites and use its resources more efficiently.
The restructuring follows a difficult period for the group.
Akwel made €414.9m in revenue during the first half of 2026, down from €510.6m during the same period in 2025. That represents an 18.7% fall.
The main reason was the end of serial production of SCR tanks. SCR, or selective catalytic reduction, is a technology used to reduce nitrogen oxide emissions from diesel engines.
Despite the fall in revenue, Akwel’s gross operating surplus increased sharply to €35.8m, from €6.5m a year earlier. Current operating income reached nearly €18m.
Net profit from continuing operations was €10.5m, compared with €13.6m in the first half of 2025.
Akwel had €102.3m in cash and cash equivalents at the end of June. Its restated net cash position is higher when term deposits and lease adjustments are included.
The company has not disclosed the amount of investment planned for the Casablanca factory. It has also not given a construction schedule or expected production capacity. The half-year report does not provide enough information to determine how much of Akwel’s total revenue comes from its Moroccan operations.
The choice of Casablanca gives Akwel access to an established automotive supply chain and manufacturing base. The city also offers access to suppliers, engineering workers and major vehicle assembly plants.
The free-zone location can also reduce some business costs through tax and customs incentives. Export-focused companies operating in such zones can benefit from corporate tax exemptions or reduced rates, as well as exemptions from customs duties and VAT on exports, depending on the applicable regime.
Casablanca also gives Akwel a production base close to European markets. The location can help the company maintain supply links with Europe while operating with lower labour and other structural costs than many Western European sites.
The new factory therefore comes at a time when Akwel is changing where it makes its products. The company is closing one European plant, reducing jobs at several French sites and preparing to add new production capacity in Casablanca.
Akwel has not said which products will be made at the new factory.
