Stellantis has opened a new vehicle dismantling centre in Casablanca. This marks a significant step in its circular economy strategy across the Middle East and Africa (MEA). The facility, developed under the company’s SUSTAINera division, aims to improve end-of-life vehicle management, enhance automotive recycling systems, increase the supply of reusable spare parts, support sustainable mobility efforts, and boost resource recovery in regional markets.

The Casablanca site is Stellantis’ third dismantling centre globally, following locations in Turin and São Paulo. The €1.6 million investment shows the growing importance of circular economy practices in the automotive industry. Manufacturers want to reduce waste, recover valuable materials, and improve supply chain efficiency. The project also highlights Morocco’s role in the automotive recycling and remanufacturing sector in Africa.

Casablanca Emerges As Regional Circular Economy Hub

The new facility covers about 6,000 square metres and can dismantle up to 10,000 vehicles annually at full capacity. Stellantis states that the centre will serve Morocco and several Sub-Saharan African markets, especially in West Africa, by creating organized and traceable channels for end-of-life vehicles.

The company plans to collect vehicles from insurance firms, auctions, and other approved end-of-life vehicle sources. Once dismantled, reusable parts will go into the aftermarket supply chain. Remaining materials will be sorted for recycling and recovery.

This project is part of Stellantis’ broader SUSTAINera strategy, which focuses on the “4Rs” framework: remanufacturing, repair, reuse, and recycling. This approach aims to extend the lifespan of vehicles and parts while reducing industrial waste and limiting the extraction of raw materials.

Samir Cherfan, Chief Operating Officer for Middle East and Africa and Global Head of Micromobility at Stellantis, noted that circular economy initiatives have become a strategic focus for the company in the region. He mentioned that this approach supports industrial performance, keeps costs manageable for customers, and promotes responsible resource management while strengthening Stellantis’ long-term presence in MEA.

Focus On Reusable Parts And Recycling

A key function of the Casablanca facility will be recovering and reselling reusable original vehicle parts. Stellantis plans to distribute these parts through its aftersales network, partner repairers, digital sales channels, and Distrigo hubs.

The company indicated that select product categories, including traction batteries, will also be available through reused or remanufactured options. This could lower repair and maintenance costs for vehicle owners while improving access to genuine parts in markets where affordability is a major concern.

Industry analysts see reusable and remanufactured parts as an increasingly crucial segment in the global automotive sector. Rising raw material costs, supply chain pressures, and stricter sustainability regulations are prompting manufacturers to explore more circular business models.

Jean Christophe Bertrand, Senior Vice President for Stellantis Middle East and Africa Parts and Services, stated that the company aims to implement circular economy practices without sacrificing product quality. He added that extending the life of vehicle parts can enhance customer value while optimizing industrial resource usage.

Economic And Industrial Impact

Beyond environmental benefits, the dismantling centre is expected to create economic opportunities for Morocco’s automotive sector. Stellantis noted that the project will create around 150 direct and indirect jobs related to dismantling operations, logistics, recycling activities, and aftersales services.

The facility will also introduce a more structured approach to end-of-life vehicle management in the country. In many developing markets, dismantling and recycling processes often rely on fragmented or informal systems with limited traceability. Stellantis’ model aims to create more standardized processes for vehicle recovery and material reuse.

For Morocco, the project solidifies the country’s emerging role as a hub for automotive manufacturing and industry. The country already has significant automotive production operations and supply chain activities serving European, African, and Middle Eastern markets.

The Casablanca centre may also serve as a model for future circular economy projects in other African and Middle Eastern countries as vehicle ownership continues to grow in the region.

Circular Economy Becomes Business Strategy

The opening of the dismantling centre highlights a larger shift in the automotive industry. Circular economy strategies are increasingly being included in long-term business planning rather than viewed only as sustainability efforts.

Automakers face rising pressure to cut emissions, manage waste, improve material efficiency, and secure supply chains for essential components. Recovering reusable parts and recyclable materials from end-of-life vehicles brings both environmental benefits and commercial gains.

For Stellantis, the Casablanca project is part of a larger effort to connect dismantling operations, remanufacturing systems, recycling networks, digital resale platforms, and aftersales services into a broader regional ecosystem.

As vehicle fleets grow across Africa and the Middle East, the industry is focusing more on how vehicles are maintained, repaired, reused, and recycled throughout their lifecycle. The Casablanca facility shows how manufacturers are beginning to see end-of-life vehicle management as an industrial opportunity linked to resource efficiency, customer affordability, and long-term market development.