Shandong Yongsheng Rubber, a major Chinese tire manufacturer, has launched a project to build a tire factory in Morocco at a cost of $675 million.

The facility will initially produce 6 million semi-steel radial tires annually, with plans to gradually increase capacity to 12 million units per year.

The manufactured tires will be primarily destined for export to European, African, and American markets, Sabah Aghadir and other local media outlets reported.

The Chinese manufacturer also plans to capitalise on preferential tariffs offered through Morocco’s Free Trade Agreements with numerous economic jurisdictions, including the European Union, the United States, and several West African countries, it said.

The new factory in the Northeastern Diouch province will be equipped with cutting-edge technology to produce high-performance models meeting technical standards for developed markets.

The project has already completed preliminary administrative procedures, including regulatory registration.

In August, Zawya Projects reported that Chinese firms are ramping up Morocco auto investments with electronics and tire projects.