(Agence Ecofin) – Morocco is attracting more and more Chinese automobile equipment manufacturers who seek to take advantage of the free trade agreement signed between this North African country and the European Union.
Shandong Daye, a Chinese manufacturer of steel wire for automobile tires, recently announced an investment of 1.5 billion yuan (approximately 210 million USD) in the construction of a new factory in Morocco. With an annual production capacity planned at 100,000 tonnes, it should be built in 2 phases, the group indicated when announcing its financial results on 3e quarter 2024.
The first phase, whose cost is estimated at 119.1 million USD, should be completed at the end of 2026. It will allow the site to produce 40,000 tonnes of steel wires and cables. No timetable has been communicated for the 2e phase.
The establishment of Shandong Daye in Morocco should enable it “ to ship its products directly to European markets “, which will help him to ” address global trade frictions and strengthen its ability to control costs in foreign markets ».
With a production of 428,000 tonnes of steel wire for tires in 2022, Shandong Daye represents more than 38% of total Chinese production in this area. The group counts among its customers major players in the tire sector, including Michelin, Goodyear, Continental and Pirelli.
Several Chinese automotive equipment suppliers and electric battery component manufacturers, including Qingdao Sentury Tire, Hunan Zhongke Shinzoom, Guangzhou Tinci Materials Technology and CNGR Advanced Material Company, have announced investments in Morocco in recent months. These groups seek in particular to benefit from the free trade agreements signed by the Shereef kingdom with the European Union (EU).
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