Stellantis opens first vehicle dismantling center in Middle East, Africa, targeting circular economy in Morocco

MOROCCO – Stellantis has inaugurated its first vehicle dismantling facility in the Middle East and Africa, located in Morocco, to recover components and materials from end-of-life vehicles and address a critical gap in formal recycling infrastructure.

The facility will operate using advanced processes designed to maximise material recovery and minimise environmental impact. End-of-life vehicles will be carefully disassembled, with usable parts identified for refurbishment and resale. 

Components that cannot be reused will be sorted by material type for appropriate recycling.

Morocco was selected due to its growing importance as an automotive manufacturing hub in Africa, now ranking as Africa’s leading vehicle producer and a significant export platform for the European market.

Closing the Loop on Automotive Materials

Stellantis, formed through the merger of Fiat Chrysler Automobiles and PSA Group in 2021, has made circular economy principles a cornerstone of its long-term sustainability strategy.

The company aims to achieve carbon neutrality by 2038 and has committed to significant investments in recycling infrastructure across its global operations. 

The dismantling center will focus on recovering metals, plastics, glass, and rubber, feeding these materials back into manufacturing supply chains. 

Unlike informal scrapyards where hazardous materials can contaminate soil and water, the facility will follow controlled processes for draining and disposing of fluids, batteries, and other hazardous components.

Addressing a Regional Gap

The establishment of this facility addresses a critical gap in the Middle East and African markets, where formal vehicle recycling infrastructure remains underdeveloped compared to Europe and North America. 

As vehicle ownership continues to grow across Africa, the challenge of managing end-of-life vehicles becomes increasingly urgent. Without proper dismantling and recycling facilities, old vehicles often end up in informal scrapyards where hazardous materials can contaminate soil and water supplies. 

The Moroccan facility could serve as a model for similar installations in other African markets.

Economic and Environmental Benefits

Beyond environmental benefits, the center is expected to generate employment opportunities and contribute to local economic development, requiring skilled technicians, logistics personnel, and administrative staff. 

The recovered parts market can provide affordable alternatives for vehicle repairs, benefiting cost-conscious consumers across the region. 

As electric vehicles proliferate, recycling facilities will become even more critical for recovering valuable battery materials like lithium, cobalt, and nickel. 

Stellantis has not disclosed specific details about the facility’s processing capacity or investment value, but the center represents just one element of its broader sustainability roadmap for the region.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE