Home Finance & Business Chinese auto parts giant opens new company in Tangier

Chinese auto parts giant opens new company in Tangier

Chinese auto parts giant opens new company in Tangier
Chinese auto parts giant opens new company in Tangier

Chinese auto parts maker Wuhu Sanlian Forging has set up a new company in Tangier as it prepares to expand its production operations in Morocco. Sanlian Technology Morocco Co., Ltd. was registered on August 17 in the Tanger Tech industrial zone, according to a company filing published on Wednesday.

The new company has registered capital of MAD 100,000 ($10,000). Its activities will include making electrical and electronic equipment for cars, supplying auto parts and producing precision-forged components.

Sanlian Technology Singapore Pte. Ltd. owns 100% of the Moroccan subsidiary. Wuhu Sanlian Forging controls the Singapore company.

Sanlian first announced its Morocco plans in 2024. The company initially planned to invest up to $4m in a project in Tangier.

The plans grew in 2025. Sanlian said the first phase of its automotive precision forging plant would require about MAD 109m ($11m), with MAD 40m coming from a convertible bond issue.

The company then looked at Rabat after struggling to secure suitable land in Tangier.

The project returned to Tangier after the company secured land and paid a deposit at Tanger Tech.

Sanlian later updated its overseas investment registration to €18m, equal to about MAD 193.9m. The higher amount reflects changes in the project’s construction and investment needs.

The latest filing confirms Tanger Tech as the final location.

Growing Chinese investment

The new project adds another Chinese company to the country’s growing automotive supply chain.

Sanlian makes forged parts used in car chassis, steering and suspension systems. Its products include control arms, steering knuckles, drive shafts and crankshafts.

The company supplies major automotive groups including Bosch, ZF, Magna, Valeo, Dana and Linamar.

Sanlian said the investment will help increase sales, expand its international business and reach more overseas customers.

“In order to increase the sales scale of Wuhu Sanlian Forging Co., Ltd., accelerate the company’s development, capture a larger share of overseas markets, and further enhance the enterprise’s overall competitiveness, the company intends to invest its own funds overseas.”

The company also highlighted risks linked to differences between the Chinese, Singaporean and Moroccan markets.

“Singapore, Morocco, and China possess distinct political and legal systems, as well as differing market environments and cultural backgrounds, presenting certain risks regarding talent, management, and legal compliance.”

Sanlian added: “The company will further deepen its understanding of the legal systems and investment environments of Singapore and Morocco to effectively mitigate risks associated with setting up and operating overseas entities.”

The investment comes as more Chinese companies expand into automotive manufacturing and related industries in the country, including batteries, electric vehicles and auto components.

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