Casablanca – Shanghai Auto Parts, a prominent Chinese manufacturer of automotive components, has announced an investment of approximately $134 million to establish a fully-owned subsidiary in Morocco. The new entity, named Shanghai Automotive Air Conditioning Parts (Morocco) Co., Ltd., is set to focus on producing automotive parts designed for the growing European and African markets.

The company’s investment will primarily cover the creation of the new subsidiary, land acquisition, factory construction, and the purchase of advanced production equipment. The exact location of the factory and the timeline for its construction are still under wraps, but the move marks a significant step in the company’s strategy to expand its international footprint.

This initiative is part of Shanghai Auto Parts’ broader plan to strengthen its global supply chain. Once operational, the Moroccan subsidiary will serve as a critical hub for the company’s operations in Europe and Africa, while its Chinese factories continue to supply the Asian market and its Mexican subsidiary addresses the needs of the Americas. This well-structured international network will allow Shanghai Auto Parts to streamline its production and delivery capabilities, meeting the increasing demand for high-quality automotive components across multiple regions.

Shanghai Auto Parts, which has more than a decade of experience in the automotive industry, is known for its expertise in manufacturing air conditioning systems, thermal management valves, and fuel distribution systems for vehicles. By establishing a presence in Morocco, the company aims to better serve its international customers and capitalize on Morocco’s strategic location at the crossroads of Europe and Africa.

The investment also highlights Morocco’s growing position as an industrial hub for multinational companies. The country has been actively developing its automotive sector, with over 260 factories already operational. This includes a growing focus on electric vehicle production, with Morocco producing around 50,000 electric vehicles annually, as the kingdom seeks to transition toward greener and more sustainable technologies.

Shanghai Auto Parts’ entry into Morocco further strengthens the country’s automotive ecosystem and underscores its appeal as an investment destination for global manufacturers. As the automotive industry continues to evolve, Morocco is poised to play an increasingly vital role in meeting the needs of global markets.