http://info.afrindex.com
China-Africa Trade Information Service
http://info.afrindex.com
China-Africa Trade Information Service
Image from Moroccoworldnews
Shandong Daye, a leading Chinese manufacturer of steel wire for tires, has unveiled plans to invest $208.5 million in a new production facility in Morocco's “Tangier Tech” industrial zone.
The plant will enhance the company’s production and distribution capabilities, positioning it to serve key clients—including Michelin, Goodyear, Continental, and Pirelli—more effectively across Europe and the United States.
The Tangier factory, set to be constructed in two phases, is expected to produce up to 100,000 tons of tire bead wire and 100,000 tons of steel cables annually.
Phase one will bring an initial investment of $119.1 million, with an anticipated production of 40,000 tons of tire steel products once completed by late 2026. The timeline for phase two remains undisclosed.
In a statement to Chinese media, Shandong Daye cited Morocco’s industrial strength and strategic trade positioning as primary factors in the choice of Tangier for this facility.
The move is aimed at mitigating the effects of shifting economic conditions and international trade frictions, allowing the company to quickly adapt to market demands.Financial news subscriptions
Shandong Daye is the latest international manufacturer to take advantage of Tangier Tech's infrastructure and logistics capabilities, joining Sentury, a global tire producer that launched its Moroccan operations in September.
By entering the Moroccan market, Shandong Daye aims to bolster its supply chain and strengthen ties with key automotive clients across multiple continents.
In 2023, Shandong Daye’s production reached 428,000 tons of tire steel products, representing over 38% of China’s total output.
The company's announcement of the Tangier expansion sparked investor interest, driving a 5.9% increase in its stock on the Shanghai Stock Exchange.
In parallel with Shandong Daye’s entry, Morocco has also attracted substantial investment from GOTION High-Tech, a prominent Sino-European group with Volkswagen as a key shareholder.
In July, GOTION announced plans for a $1.3 billion electric battery gigafactory in Kenitra, marking the first of its kind in the Middle East and Africa.
The facility, part of a broader $6.8 billion strategic investment, is expected to generate 17,000 jobs and supply a growing electric vehicle market, tapping into Morocco’s emerging role as a leader in renewable energy and sustainable industrial development.
