Casablanca – Lingyun Industrial, a leading Chinese automotive parts manufacturer, has announced plans to establish two new car parts factories in Morocco as part of its strategy to strengthen its presence in European and North African markets and better serve its international customers.

The factories will be located in Tangier, a key industrial hub in Morocco, and are set to produce a variety of essential automotive components, including vehicle pipes and body structural parts. The body parts plant will be a joint venture between Lingyun Industrial and Haomei New Materials, a prominent Chinese aluminum manufacturer. Both companies have a strong track record in automotive manufacturing, and the partnership is expected to streamline production and ensure a stable supply of raw materials.

Two key projects

The first facility will focus on producing automotive pipes, a critical component used in various car models for fluid and gas transportation. The facility will primarily serve global car manufacturers and parts suppliers, including major players such as Tesla, Volvo, Plastic Omnium Auto Inergy, Stellantis, and Magna International. This project will be built with an estimated capital of $8 million, and it aims to supply parts for a range of global automotive brands.

The second project, dedicated to producing body structural parts, will have a registered capital of $13.8 million. This plant will manufacture battery housings, high-strength parts via roll-forming, and other vital components for vehicles. These parts are crucial for the assembly of electric and traditional vehicles, particularly in the areas of structural integrity and energy storage. Target customers for this project include Stellantis, BMW, Mercedes-Benz, Renault, Ford Motor, Volkswagen, and Tesla. By focusing on these high-demand products, Lingyun expects to strengthen its position in the competitive automotive industry and provide cutting-edge solutions to leading carmakers.

Strategic partnership with Haomei new materials

A key aspect of the expansion is the joint venture with Haomei New Materials, a company renowned for its expertise in producing lightweight aluminum materials for the automotive industry. This collaboration is expected to bring significant benefits to both companies, particularly in terms of cost reductions for raw materials and stabilizing the supply chain. By sharing the investment and financing risks, Lingyun and Haomei can effectively manage the challenges that come with establishing manufacturing operations in new markets.

Haomei New Materials will own 49% of the body structural parts factory, while Lingyun Industrial will hold the remaining 51% through its Hong Kong-based subsidiary, Aester Automotive Holdings Ltd. This joint venture model not only fosters collaboration but also ensures that both companies are equally invested in the success of the project. Additionally, the partnership will provide a more consistent flow of raw materials, ensuring that production is not hindered by supply chain issues.

Strengthening Morocco’s automotive sector

These new factories are expected to play a significant role in strengthening Morocco’s position as a key automotive manufacturing hub in the African and European markets. The country has become an increasingly important destination for automotive investments, offering strategic access to both European and North African markets. The Moroccan government has been working to position the country as a major player in the global automotive industry by implementing favorable policies and infrastructure development, further enhancing its appeal to global manufacturers.

The facilities will also support the growing demand for electric vehicles, aligning with global trends in sustainability and innovation in the automotive sector. As carmakers across the globe shift toward electric models, the demand for advanced components such as battery housings and high-strength structural parts is expected to rise sharply. By targeting both traditional and electric vehicles, Lingyun is positioning itself to serve the evolving needs of the automotive industry.

Future prospects

Once operational, the factories will collaborate with Lingyun’s European units to expand their market reach and deliver products efficiently to clients in both regions. While specific details regarding production capacity and construction timelines have not been disclosed, the partnership with Haomei New Materials is expected to accelerate the production process and reduce initial investment risks.

This expansion reflects Lingyun Industrial’s commitment to increasing its international presence and aligning with global automotive trends, particularly in the growing electric vehicle segment. With these two factories, Morocco is poised to become an even more important player in the global automotive supply chain.