Chinese Copper Powerhouse Hailiang to Inject $288 Million into Moroccan Plant Amid Trade Tensions

In a significant development amid rising geopolitical tensions between the United States and China, Zhejiang Hailiang Co., a leading Chinese producer of copper tubes and rods, has announced plans to invest $288 million in a new manufacturing facility in Morocco. This strategic move underscores the company's commitment to diversifying its production operations and demonstrates a proactive approach to avoiding potential U.S. sanctions on Chinese goods.

According to a Bloomberg report, the Moroccan facility will focus on producing lithium-battery foil for export to key markets in Europe, the United States, the Middle East, and Africa. In a filing to the Shenzhen Stock Exchange, Zhejiang Hailiang explained that establishing a base in Morocco would allow the company to better serve clients in regions where trade disruptions are increasingly common.

Zhejiang Hailiang's expansion into Morocco aligns with its broader strategy to explore overseas markets, mitigating the impact of shrinking profit margins in China. This trend has been fueled by stricter domestic regulations and escalating trade tensions with Western countries. Last year, the company announced plans to build a 50,000-ton lithium-battery copper foil plant in Indonesia, demonstrating its commitment to global expansion.

The new Moroccan facility is expected to have an impressive production capacity, manufacturing 50,000 tons of alloy, 35,000 tons of pipe, 40,000 tons of rod, and 25,000 tons of foil annually. The construction phase is anticipated to take 36 months, indicating the scale of this ambitious project.

Morocco's strategic location, with free trade agreements in place with major Western economies like the United States, the European Union, and Turkey, provides a favorable environment for Hailiang's expansion plans. Additionally, the continent's rich copper deposits help ensure lower raw material costs, contributing to the project's economic viability.

As the world contends with shifting trade dynamics and geopolitical tensions, Zhejiang Hailiang Co.'s bold move to establish a manufacturing base in Morocco demonstrates the company's adaptability and strategic vision. With this major investment, the Chinese copper giant is set to strengthen its global footprint while navigating the evolving landscape of international trade.