Chinese Manufacturing Group Invests $150m in Morocco Steel industry

 Fumnanya Agbugah Economic Development & Policies, International, Investing

VENTURES AFRICA – Morocco has reached a $150 million deal with Shandong Shangang group, a leader in the manufacture of steel products, to install modern manufacturing plant for the production of steel pipelines.
“This contract reflects the determination of the strategy implemented in Morocco to bring in a number of Chinese manufacturers looking for competitive alternatives,” said Morocco minister of trade, Industry, Investment and Digital Economy, Moulay Hafid Elalamy.
The plant will be located in Morocco’s free trade zone of Tangier Automotive city.

This memorandum brings to life a modern steel production unit that is estimated to produce a total of 250,000 tonnes of steel pipelines yearly which will be exported to other African countries and Europe.
The industrial group is expected to export 30 percent of its products to Africa and 70 percent to Europe.
“The development of this plant is expected to create 200 jobs in Morocco and we also intend to extend the partnership with Morocco to other African countries,” Vice-President of the Shangang Group, Qian Yong said.
The arrival of Shangang group into Morocco adds to the growing number of foreign investors in the steel industry as the continent continues to showcase a healthy investment destination for foreign businesses.