Africa’s largest manufacturing country attracts another Chinese company with an initial $32 million investment

• Chinese cable-maker Wuxi Xinhongye plans to establish a subsidiary in Hong Kong to collaborate with French automotive supplier ACOME for a joint venture in Morocco.
• The joint venture will have a projected capital limit of about $32 million, with final investment determined by approvals from Chinese and Moroccan stakeholders.
• This move aims to enhance Xinhongye’s foreign operations and support its global expansion strategy, especially in the automotive supply chain.
• ACOME already operates an automobile cable facility in Tangier, indicating strong existing French industry presence in Morocco.

The cable-making company from China, Wuxi Xinhongye Wire & Cable Technology, recently relayed plans to form a joint venture in Morocco with French automotive supplier ACOME as part of its global growth strategy.

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The Chinese cable-maker intends to establish a wholly owned subsidiary in Hong Kong that will be supported entirely by its own resources or internal capital.

The Hong Kong firm would then collaborate with ACOME Automotive to form a joint venture in what is now considered Africa’s largest manufacturing market.

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The joint venture currently has a projected cap limit of around $32 million, while the eventual amount will be determined by authorization from the appropriate stakeholders in China and Morocco.

The Chinese company noted that the move is designed to enhance its foreign operations and assist its overall overseas expansion plan.

The company's board of directors has approved management and selected representatives to oversee the Hong Kong subsidiary's creation and other associated activities.

The Moroccan collaboration is anticipated to increase Xinhongye's role in the automotive supply chain, as reported by MoroccoWorldNews.

Its French partner, ACOME, is already present in the nation with an automobile cable production facility in Tangier Free Zone that launched some years ago.

Manufacturing between China and Morocco

Companies and stakeholders across the Chinese and Moroccan markets have established joint ventures regarding manufacturing.

Just last month, the Chinese tire company, Guizhou Tire, decided to set up a manufacturing branch in the North African country.

The tire manufacturer finalized all domestic approval and registration procedures for its planned passenger car tire manufacturing facility in Morocco, enabling the company to proceed with the project.

    A month prior to this, China’s Gotion High-Tech set up plans to build Africa’s first electric vehicle battery gigafactory plant,** ****after receiving a €100 million ($114 million)** loan from the African Development Bank to support the construction.

The initiative entails an initial capital commitment of approximately $1.3 billion for the establishment of an integrated lithium iron phosphate (LFP) battery manufacturing facility within Morocco’s Rabat-Salé-Kénitra Free Trade Zone.

In May, recent analysis published by the Stimson Center indicated that Morocco is becoming a pivotal element in China's overarching international green industrial strategy.