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Moroccan equipment producer increases its efficiency and competitiveness

Investor
Faurecia, a car equipment producer
Location
Kenitra, Morocco
Investment
Replacement of sewing machines and cutting machies, LED
Investment Size
€1.87 million
Financial results
5.7 years payback period
Energy savings
809 MWh per year (52%)
CO2 savings
514 tonnes of CO2 per year
Impact
Reduced energy consumption and increased production capacity
Donor
EU NIF, SEMED Multi-Donor Account

New sewing and cutting machines generate 52% of energy savings

Faurecia, Europe’s second-ranking automotive equipment supplier, specialises in six major vehicle products: seats, cockpits, doors, acoustic packages, front ends and exhaust systems. It operates in 28 countries and employs 60,000 people on 190 sites.

The company decided to modernise its 27,000-square meter cut-and-sew factory in Kenitra having faced the challenges of the energy market liberalisation and increased competition.

Faurecia addressed MorSEFF for financing of a project consisting of replacement of old sewing machines, cutting machine and lighting.

The final project included installation of 87 high-efficiency direct drive sewing machines, four cutting machines and 400 LED lamps. The aim was to increase the production capacity and enhance energy efficiency to boost the competitiveness. The company also seeks to augment its market position through promoting a positive, environmentally friendly brand image.

The MorSEFF team performed the analysis of the proposed technologies, their potential for energy savings, financial-technical parameters and profitability of the project.

The €1.87 million investment allowed Faurecia to reduce its energy consumption by 809 MWh per year, leading to 50 per cent energy cost savings. The investment will be repaid out of energy savings in less than six years, turning the future cash-flows into company income for the years to follow. This investment also resulted in increased production capacity, lower production costs, improved working conditions and increased revenues.

The EBRD, through MorSEFF, supports the sustainable financing and implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.

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