Casablanca – In a strategic move underscoring Morocco’s growing role as an industrial hub, Chinese automotive components group Shandong Kuntai New Material Technology Co., Ltd. has announced an investment of $13.7 million to establish a manufacturing facility in Morocco. The new plant will specialize in automotive carpets, floor mats, and interior covers, primarily serving the European market.
The announcement, made through official company statements and during meetings with investment funds, highlights Morocco’s strategic geographic location, competitive production costs, and the country’s preferential access to European Union markets, which collectively make it an attractive destination for high-value industrial investments.
Integrated production platform
The Moroccan facility will operate through a wholly owned subsidiary managed by Kuntai’s Singapore-based branch, Kuntai Hongjing Ltd. The plant is designed as an integrated industrial platform, combining research and development, production, design, distribution, and a dedicated service hub for European clients. This structure is expected to reduce supply chain costs and accelerate delivery times across Europe.
The investment is fully self-financed, without external debt, reflecting Kuntai’s commitment to a balanced and sustainable expansion strategy. The company also emphasized that this project is not part of any major restructuring or related-party transaction, but rather a strategic step to strengthen its global footprint.
Global expansion strategy
Kuntai, a leading supplier to major automakers including Tesla, Audi, BMW, Toyota, and emerging Chinese brands like Xiaomi Auto and NIO, focuses on tufted and needled automotive carpets, wheel covers, and engine protection plates. Its products are designed for multiple interior applications, offering antibacterial, flame-retardant, and anti-mold properties.
The company previously inaugurated a plant in Mexico in 2024 to serve the North American market and is now turning to Morocco to consolidate its presence in Europe. The goal is to expand production outside China, increase exports, and achieve higher profit margins in international markets, with targets exceeding 35%, compared to 25% domestically.
The global automotive flooring market, in which Kuntai operates, is valued between $166 billion and $189 billion, providing significant growth potential. Currently, exports represent around 11% of Kuntai’s total transactions, a figure the company aims to increase through international production hubs.
Morocco as a strategic industrial hub
Morocco’s location near France and Spain, along with EU free trade agreements, allows Kuntai to export products duty-free, mitigating the impact of trade barriers such as anti-dumping duties. Shipping from Morocco also reduces the maritime distance to Europe by up to 80% compared with shipments from China, while cutting supply chain costs by more than 60%, enhancing production flexibility and responsiveness to European demand.
Additionally, Morocco’s competitive labor costs, stable investment environment, and modern logistical infrastructure make it an attractive destination for international investors. Analysts describe the country as an emerging global automotive hub, with an integrated ecosystem of manufacturers and parts suppliers.
Economic and industrial impact
The new Kuntai factory is expected to create new jobs, support Morocco’s strategy of industrial diversification, and strengthen the Kingdom’s position as a regional and international industrial center. It will also enhance Kuntai’s competitiveness and product quality in Europe while reinforcing existing partnerships with global automakers.
This project underscores both the confidence of international investors in Morocco’s economic and industrial capabilities and the country’s emergence as a flexible, strategic production base for high-value industries, particularly in the automotive sector.
