Faced with a significant drop in profits, Guangzhou Tinci High-Tech Materials Co., leader in advanced chemical materials, plans to expand its activities in Morocco in 2025. This establishment aims to strengthen its international presence and exploit the Kingdom’s potential as a hub between Europe and Africa.
Tinci Materials, which specializes in electrolytes for lithium-ion batteries and other advanced chemicals, recently announced a significant drop in its projected net profits for 2024, expected to reach between 4.4 billion and 5.2 billion yuan. (between 600 and 700 million dollars), a decrease of 72.5% to 76.73% compared to 2023. This decrease is attributed to a drop in demand in the battery chain for electric vehicles and to significant adjustments in the prices of its products.
To compensate for this decline, Tinci is banking on an international expansion strategy. The company plans to establish a subsidiary in Morocco in 2025. This choice is part of a desire to exploit the strategic geographical position of Morocco, which offers a gateway to European and African markets. By offshoring part of its production, Tinci also hopes to reduce its logistics costs and improve its competitiveness on a global scale.
This integrated production unit will allow the company to efficiently supply its international customers while diversifying its production capacities outside China. By strengthening its resilience in the face of fluctuations in the Chinese market, Tinci aims to consolidate its position as a world leader in the battery materials sector.
Alongside its establishment in Morocco, Tinci Materials is pursuing a vertical integration strategy to improve its competitiveness. The company is expanding its production capabilities for key raw materials, such as lithium hexafluorophosphate, lithium carbonate and spodumene, key components of lithium-ion batteries. This approach aims to reduce production costs, secure the supply of critical raw materials and meet growing demand in the battery industry.
-Unity in Morocco marks an important step in this strategy. With this establishment, Tinci wishes to take advantage of Morocco’s advantages in terms of logistical connectivity, economic stability and proximity to growing markets in Africa. This choice is also part of a long-term vision aimed at diversifying global supply chains and meeting the needs of a rapidly changing sector.
Remember that the company, founded in 2000, is recognized for its expertise in the fields of materials for lithium-ion batteries (it is a major supplier of electrolytes used in lithium-ion batteries, which are essential for electric vehicles , electronic devices and energy storage systems), cosmetics and personal care products (the company manufactures chemical ingredients for skin care products, shampoos, creams and other cosmetic products) and materials for treatment of surface and chemical additives.
According to Tinci, Morocco holds significant reserves of phosphorite ore, stressing that the establishment of a factory in the North African country will also help to better serve and explore the European market.
According to its annual report, Tinci’s revenue more than doubled to 22.3 billion yuan, or $3.1 billion, last year due to strong demand. Revenue from its lithium battery materials business accounted for 93% of the total. Net profit, meanwhile, rose nearly 160% to around 5.7 billion yuan ($789.7 million).
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