Zhejiang Hailiang Co., a major producer of copper tubes and rods, intends to invest $288 million in Morocco to manufacture novel energy materials such as lithium-battery foil in response to increased global demand, announced Bloomberg on Wednesday.
As geopolitical tensions pose significant risks to trade and supply chains, the Chinese business plans to use the new facility to better serve its customers in Europe, America, the Middle East, and Africa, according to a filing it made with the Shenzhen Stock Exchange on Tuesday.
Zhejiang Hailiang has been expanding into global markets as margins at home erode due to increased restrictions on Chinese products as a result of escalating tensions with Western countries. Last year, it announced plans for a 50,000-ton lithium-battery copper foil facility in Indonesia.
Once built, the new factory in Morocco will be able to produce 50,000 tons of alloy, 35,000 tons of pipe, 40,000 tons of rod, and 25,000 tons of foil each year following a 36-month building phase, according to the statement.
Morocco has free trade agreements with numerous Western nations, including the US, the European Union, and Turkey, giving it stronger access to those markets, according to Hailiang. It further stated that the project will benefit from reduced raw material prices due to Africa’s abundant copper reserves.
The corporation also has manufacturing facilities in the United States, Germany, France, Italy, Spain, Vietnam, and Thailand.