(Ecofin Agency) - • Shandong Yongsheng plans a tire factory with initial output of 6 million units
• Production could reach 12 million annually as local capacity develops
• Project builds on Morocco’s free trade deals with the EU and U.S.

Chinese automotive components firms continue to establish a presence in Morocco, capitalizing on the North African country's free trade agreements with the European Union and the United States.

Shandong Yongsheng Rubber, a Chinese auto components group, plans to construct a tire factory in Morocco, as reported by specialist website Tyrpress on May 29. The construction of this factory is expected to begin in six months, according to the application for setting up the factory submitted by the group, which manufactures the Tracmax and Road King tire brands.

Designed with an initial production capacity of 6 million tires per year, the factory is projected to gradually reach a production volume of 12 million units. As reported by Moroccan press, the factory is set to be installed in the specialized industrial zone of Kénitra Automotive City (Northwest). A delegation from the Chinese firm has already made two visits, in January and February, to the City of Trades and Skills (CMC) based in this area, in order to appraise the local potential in training and skilled labor.

A number of Chinese automotive suppliers and manufacturers of electric battery components, including Sentury Tire, Shandong Daye, Hunan Zhongke Shinzoom, and CNGR Advanced Material Company, have announced investments in Morocco in recent years. These groups are particularly seeking to leverage the free trade agreements signed by Morocco with the European Union (EU) and the United States.

Morocco, home to a significant automotive ecosystem comprising globally renowned manufacturers like Stellantis and Renault as well as hundreds of component suppliers, accounted for 58% of African vehicle exports in 2024.