Chinese car parts maker Jiangsu Hongyi Precision Industry Co. says it will open a fully owned factory in Morocco as part of its overseas growth plans.
The company’s board approved the move on 30 January. It plans to invest about $15m, or 137m dirhams. The new unit, to be called Pinnacle Precision Industry (Morocco), will be set up through its Singapore subsidiary IHSIN.
The project still needs approval from Chinese regulators and must complete registration steps in Morocco. The company said the move is not a major restructuring and does not involve related companies.
The Moroccan factory will make and sell car parts, machine metal components and handle some import and export activities. Jiangsu Hongyi focuses on high-precision steel tubes and fittings used in suspension and steering systems, as well as safety parts such as seatbelt devices and airbag components.
It is a certified supplier to Autoliv, one of the world’s largest car safety companies.
The group said Morocco offers clear advantages, including trade deals with the European Union and the United States. These agreements allow products made in Morocco to enter those markets with low or zero tariffs if they meet origin rules.
Morocco now has more than 250 automotive suppliers. Global carmakers such as Stellantis and Renault operate large plants in Kenitra and Tangier.
Chinese manufacturers have been expanding into North Africa in recent years to spread their production outside China and stay close to key customers. Jiangsu Hongyi said the new factory will help it better serve clients and strengthen its position in global supply chains.
