Spanish Firms Flock to Morocco, Seeking Looser Regulations and Lower Costs

Several Spanish companies have chosen to relocate part of their production to Morocco to escape the European Green Deal and take advantage of cheap labor, tax benefits and the flexible environmental regulations offered by the kingdom. Among the companies that have decided to set up in Morocco are giants in the agri-food sector such as Borges, Juver and Ebro Foods, who are looking to optimize their operating costs and continue their international expansion.

According to ICEX data, some 360 Spanish companies, including 10% from the agri-food sector, have decided to establish or expand their activities in Morocco in recent years. Ebro Foods, known for its brands such as Brillante, SOS and Nomen, set up its factory in the Larache region in 2001. Costing more than 15 million euros, it produces 50,000 tons of rice per year. Borges, famous for its oils and nuts, owns 10% of Framaco SA, a subsidiary specializing in the packaging of olive oil and olives.

Beyond the agri-food and agricultural industries, Spanish companies specializing in agricultural technology have also set their sights on Morocco. This is the case of Semillas Fitó SA which has started exporting varieties adapted to the Moroccan climate, or Criado y López who are investing in the construction and maintenance of greenhouses, the export of agrotextiles and the opening of local subsidiaries.

The strong Moroccan demand for agricultural machinery (tractors, trailers, etc.) has also benefited Spanish companies, which have exported more than 10 million euros worth of agricultural machinery and 25 million euros worth of tractors to Morocco in 2023. "Since 2009, Juver Alimentación has had a subsidiary in Morocco, but it is exclusively commercial. Its main function is to distribute the products we manufacture in our processing and packaging plant in Murcia," its managers told Huffpost.