By Ross Marowits, The Canadian Press

MONTREAL - Bombardier Aerospace says it has bought land near the airport in Casablanca's free zone that offers five years of no taxes and other financial incentives for a manufacturing facility set to open next year.

The Montreal-based aircraft manufacturer said Monday it signed a deal with Moroccan property holding and management company Midparc Investment S.A. for the land in a free zone in Nouaceur.

Midparc is owned by a state financial agency and three private industrial companies specializing in aeronautics and electronics fields.

Bombardier Aerospace president Guy Hachey said the selection of the site for the manufacturing facility is "an important first step" in establishing the world's third-largest aircraft manufacturer in the North African country.

"The site met our stringent requirements and high standards and we look forward to the start of the construction and production of the first Moroccan-built Bombardier aircraft components," he stated in a news release.

Hachey said it hopes the long-term relationship will serve as a catalyst for the aircraft industry in Morocco.

Bombardier (TSX:BBD-B.TO - News) joins other aerospace manufacturers in setting up shop in Morocco, which has established an aerospace training program and offers many tax and financial incentives to attract companies.

The company will pay no taxes for five years, 8.75 per cent for another 20 years and 17.5 per cent thereafter.

On its website, Midparc boasts about low wages being one of Morocco's advantages. It said the average monthly wage is US$327, lower than in Tunisia and Turkey, 10 times lower than Spain and a quarter of what's earned in South Africa.

Read the original post:

Bombardier buys land in Casablanca free zone for aerospace manufacturing plant