Chinese Wuxi Xin Hongye Wire & Cable Technology has said it will invest $34 million in an automotive cable plant to be set up in Tangier region in partnership with France’s Acome Automotive.
The two partners will establish a $ 10 million joint venture named “Morocco Acome Xinhongye Automotive Cables”. The Chinese company will hold 80 % of the capital of the subsidiary, while the remaining 20 % stake will be owned by Acome.
Wuxi Xin Hongye, which makes specialized cables for electrical vehicles, solar panels, storage batteries and nuclear plants, concentrates its production in China. It is the first time that that Chinese cable maker will start production overseas.
The Chinese company has chosen Morocco for its free trade agreements with the European Union and the United States. Furthermore, the Kingdom has established itself as gateway to the European, Middle East and African markets.
Acome has been making automotive cables in Tangier since 2018. Focused on innovation, its Moroccan plant produces wires and cables in the skinny wires range to meet the weight reduction challenges of vehicles.
Morocco is Africa’s largest automotive manufacturing hub. It has produced over 1 million vehicles, leading the continent in vehicle production and exports. Automotive industry is the Kingdom’s largest export sector, accounting for 27% of total exports and contributing more than 14% GDP.
