Interview with Abdeslam El Eulj, CEO of FAMACOLOR

Interview with Abdeslam El Eulj, CEO of FAMACOLOR

“…I would like to express my admiration for the great achievements carried out by our Sovereign, may God assist him, for the development of all sectors of activity in Morocco. Today, Morocco is a promising country in terms of investment in green sectors” Abdeslam El Eulj, CEO of FAMACOLOR SA

How did the launch of your FAMACOLOR-CASA FIBER industrial unit come about?

The launch of our industrial unit, located in Berrechid, took place in 2017, following the call of His Majesty King Mohammed VI, God glorify him, for sustainable development with industrial projects contributing to the protection of the environment. For us and after more than five years of sustained activity, FAMACOLOR is a real social project, contributing to the emergence of a new development model in the Kingdom. This industrial unit actively participates in the sustainable development of our country with a recycling and recovery capacity of no less than 20,000 tons of PET bottle waste/year, as well as the reduction of the carbon footprint at a rate of less than 200,000 kg of CO2/Day. On the socio-economic level, it generates more than 160 direct jobs and more than 12,000 indirect jobs (ragpickers). As it participates in meeting the needs of the local market through its production capacity of more than 15,000 tons of staple polyester fiber.

-What difficulties have you encountered since the launch of your industrial unit?

We have encountered several difficulties, in particular the lack of raw materials due to the lack of sorting centers and landfills sufficient for the smooth running of our business as well as to meet the demand of the local market, the very weak to effectively protect local operators, as well as the lack of support needed to address the tariff issue from competent authorities such as line ministries (Ministry of Trade and Industry, Ministry of Finance, Ministry of Transition energy and sustainable development, etc.).

It should be mentioned that some African countries export staple polyester fiber to our country at low prices with a customs duty rate of 2.5% and which benefit from several customs and production advantages from their government (exchange rate low, low electricity costs, low energy costs/kWh, freight costs, etc). Something that leads to competitive advantages against national operators who are penalized by high production costs. For example, in terms of comparing the costs of factors of production in certain countries with Morocco, we find that the Nigerian exchange rate is lower than that of Morocco at the rate of 4483% and 12995% in South Korea. South. That the cost of electricity is 252% cheaper than in Morocco. That the cost of gas/kwh in India, Algeria, Nigeria, Egypt, China and South Korea are cheaper than in Morocco at a rate of, respectively, 859%, 2250%, 683%, 395%, 309%, and 119%. As for the minimum wage in India and Egypt, it is lower than that of Morocco by 721% and 150% respectively.

Precisely, what actions have you taken to overcome these difficulties?

The Moroccan Federation of Plastics (FMP) supported the request for the reduction or exemption of VAT in favor of local plastic waste, as well as in favor of Polyester Fiber from local waste produced locally to be included in the PLF 2023. This request is based on the State’s commitment to promote the circular economy, within the framework of measure 20.4 relating to the objective “Strengthening taxation in favor of green sectors of the national strategy for sustainable development 2030”, provided for in the national strategy for Sustainable Development, adopted during the Council of Ministers of 06/25/2017, chaired by His Majesty Mohammed VI. Also, this measure reflects the spirit of Articles 4 and 7 of Law 69-19 on tax reforms which stipulate the encouragement of environmental protection as the objective of tax incentives.

– Request to ensure the supply of raw materials, because the production capacity can go up to 60,000 Tons/Year instead of the current 30,000 Tons/Year, and this, in particular through the establishment of modern sorting in all the cities of the Kingdom, by accelerating the installation of 15 planned sorting centers in addition to the 14 already existing.

-Request for mandatory application of the Polyester Fiber Standard (NM 05.02.040) and to launch the revision of the said standard through IMANOR like international standards, bearing in mind the criteria determined by the REACH regulation of the European Union (EU).

-Request for a ban on the export of Flakes (CODE 39 07) regardless of the degree of impurity, as well as the adoption of a Flakes Standard with mandatory application with the amendment of Ministerial Order 98.16 appearing in the Official Bulletin (BO) N° 6434 dated 08/01/2016 to include nomenclature 39.07.

-Request for review of import duties for staple polyester fiber, because the current 2.5% are not at all reasonable and strongly penalize local operators, increasing them by at least 30%.

Recently, we participated in two international exhibitions dedicated to waste recycling (Salon RWM – Tangier), and to the plastics industry (Forum international de la plasturgie – Casablanca) during which we were able to approach the Minister of Trade and industry, Mr. Ryad Mezzour, who was convinced by our request, and of whom we remain optimistic to carry out and concretize our request.

– What message do you want to send, today, in favor of the recycling and waste recovery sector in Morocco?

-In the first place, I would like to express all my admiration for the great achievements made by our Sovereign, may God assist him, for the development of all sectors of activity in Morocco. During my forty years in the industrial sector, I can say that Morocco has recorded, thanks to the leadership of His Majesty Mohammed VI, considerable progress in all sectors of the Moroccan economy.

As I would like to express all my gratitude to the support as well as the contribution of Maroc PME which has accompanied us to carry out our various waste recycling and recovery projects. My message aims to promote the national product “Made in Morocco” which represents a pillar of the new development model, in such a way as to protect it from international competition which can be unfair.

We want the authorities to be able to support all recycling and recovery companies sufficiently to make the circular economy a reality in our dear country and meet local market demand on a permanent basis. Our dearest wish is to participate actively in the development of our national economy so as to create more jobs, train more skills, and reduce our country’s trade deficit.

Today, Morocco is a promising country in terms of investment in green sectors. As our ancestors bequeathed to us a clean and natural environment, we have a historical responsibility towards future generations to preserve this environment so that it is profitable to them and from which they can benefit in turn.

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