Casablanca – Morocco has solidified its position as a key destination for foreign industrial investments, with the announcement of a major project by the Chinese steel wire manufacturer, Shandong Daye. The company, a global leader in the production of tire steel wire and steel cables, has confirmed an investment exceeding $100 million in the Tangier Tech industrial zone. This initiative aligns with China’s broader strategy of expanding its manufacturing presence worldwide while boosting Morocco’s economic development.

A strategic expansion in Morocco

The new facility will be built in two phases, with an initial investment of $11.91 million. This first phase aims to install production lines with a capacity of 40,000 tons per year, focusing on steel wires for tire reinforcement and specialized cables. The expansion is set for completion by the end of 2026. The second phase, which will be scheduled later, is expected to increase production to 100,000 tons per year to meet rising demand from international tire manufacturers.

Morocco was strategically chosen for this investment due to its political stability, business-friendly environment, developed financial and logistical services, and availability of skilled labor. Tangier Tech, known for its modern infrastructure and strong connectivity to international markets, has proven to be a major attraction for global industrial players. Several companies, including tire manufacturer Sentury, have already established operations in the zone.

Boosting Morocco’s industrial growth

The presence of Shandong Daye in Morocco is expected to bring significant economic benefits, particularly in the field of automotive-related steel production. With its ability to serve major tire producers such as Michelin, Goodyear, Continental, and Pirelli, the new factory will enhance Morocco’s role in international supply chains. This will also reinforce exports to European and North American markets, securing the country’s position as an emerging industrial hub.

In addition to strengthening Morocco’s industrial sector, the investment is projected to create numerous job opportunities for local talent. The demand for engineers, technicians, and factory workers is expected to rise, contributing to workforce development and economic stability.

A global manufacturing powerhouse finds a new base

Shandong Daye’s expansion into Morocco is part of a broader plan to extend its global production network. The company manufactured 428,000 tons of steel products in 2023, accounting for 38% of China’s total output in this sector. By setting up in Tangier, the company gains proximity to European clients and benefits from Morocco’s preferential trade agreements with international markets.

The growing presence of Chinese investment in Morocco reflects a stronger economic partnership between the two nations, and demonstrates confidence in Morocco’s ability to support large-scale industrial projects. With ongoing investments in infrastructure, manufacturing, and logistics, the country is emerging as a competitive player in global supply chains.

Future prospects for Morocco’s economy

Beyond this specific investment, Tangier Tech continues to attract foreign businesses looking for a gateway to African and European markets. The Moroccan government’s continued efforts to improve business conditions and expand industrial zones are driving an influx of foreign direct investment (FDI). If this trend continues, Morocco could position itself as a regional leader in automotive-related steel production, further diversifying its economic portfolio.

This latest move by Shandong Daye underscores the growing confidence of global investors in Morocco’s economic landscape, paving the way for future industrial expansions and stronger economic ties with key international markets.