Renault says on track to build plant in Morocco-CEO

RABAT, June 15 (Reuters) - France's No.2 carmaker Renault (RENA.PA: Quote, Profile, Research) is going ahead with plans to build a factory to produce low-cost vehicles in Morocco despite the global downturn, the company's chief said on Monday.

The media in Morocco and abroad cast doubt on whether the factory would be built after the deepening economic crisis forced Japan's Nissan Motor Co (7201.T: Quote, Profile, Research), which is in an alliance with Renault, to withdraw from the project early this year.

The project, being done in partnership with the Moroccan government, was announced in September. At the time the Renault-Nissan alliance said it would involve total investments of 600 million euros in manufacturing capacity.

Carlos Ghosn, who is both president and chief executive of Renault, and president of Nissan, flew from Paris to visit the plant site in Tangiers, and to meet king Mohammed and top government officials in Rabat to dispel any doubt about the factory's future.

"All what has been planned will be achieved," Ghosn told a news conference in Rabat, adding that he had already approved the investment for plant equipment.

"The buildings of this plant will be erected beginning September this year," Ghosn said, adding that the only change would be "the rate of production" of the factory, which would depend on market circumstances.

"The first cars good for sales will be produced from the Tangier plant in January 2012 as scheduled," he said.

Ghosen said Nissan would be part of the project in the future as it was now focusing now in a similar project in India.

"I'm the CEO and I'm telling you that," he said in a reply to a reporter who asked him for evidence that Nissan would rejoin the project. The factory is an important project for Morocco, where the government has invested more than $10 billion in developing the northern areas of the country around the Mediterranean port complex of Tangiers.