Guizhou unveils plans for $300m Morocco tire factory

Shenzhen, China – Guizhou Tire Co., Ltd has announced plans to build its second overseas factory in Morocco.

The Chinese tire maker intends to invest $298.7 million (€255 million) in the proposed Advace Tyre (Morocco) Co. Ltd, to produce 6 million units of passenger car tire per year.

To be based in Tangier Tech City, the ‘intelligent facility’ is expected to be completed in two years, said Guizhou in a 6 Jan stock exchange filing.

The tire maker said the investment was part of its “internationalisation, intelligentisation, green development and high-end positioning” strategy.

With the new factory, Guizhou said it will further enhance its product structure, optimise capacity layout, and improve production, operational resilience as well as risk resistance.

To be financed from own funds and self-raised funds, the project is expected to achieve annual sales revenue of $182 million, annual total profit of $41 million, and a total investment return rate of 13.37%, according to Guizhou.