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Rabat – A Chinese tire company Qingdao Sentury has announced its plans to invest $297 million in the building of a car tire factory located in the northern Moroccan city of Tangier.
The company chose Morocco as Qingdao Sentury believes the North African country offers a stable economy and political environment.
In addition, the company recognized Morocco’s prime geographic location for distribution to Europe in particular.
In explaining its reasons for selecting Morocco, the Asian company noted that the country has favorable investment conditions, good trading policies, as well as strong and easy access to European and American markets.
The factory is projected to begin operations by the end of 2024, as the construction is only expected to take approximately 18 months. There are high hopes for the new tire production line as the factory directors hope to create 3.6 million tires in the first year of business.
After the first year, they hope the initial figure increases to 6 million tires by the end of the second year.
The company is relying on self-raised funds to progress with the project until completion, the operating costs of the factory are estimated at $210 million, with hopes of a $51.88 million profit.
The Morocco build comes under a larger project that plans to have multiple factories across the world within the next 10 years.
The Chinese company has already made international investments as it opened the first of its international factories in Thailand in 2015.
However, the growing demand for products made the company expand its business beyond its current locations in China, Rayong, and Thailand.
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