The board of directors of Guizhou Tyre (which operates internationally under the Advance Tyre brand) today formally approved a strategic investment plan to build a smart factory in Morocco with an annual production capacity of 6 million semi-steel radial tires. This move marks a crucial step forward in the group's strategic process of optimizing its global production network and enhancing its international competitiveness.

Project Overview and Financial Expectations

The total investment for this project amounts to $298 million, of which approximately $293 million will be directly allocated to factory construction. The project will be specifically implemented by a newly established subsidiary for this purpose – Advance Tyre Morocco Co., Ltd.

Production Capacity Layout: The new factory is located in Tanger Tech, Morocco, with a designed annual capacity of 6 million semi-steel radial tires.

Economic Benefits: According to the company's forecasts, the factory is expected to contribute an annual turnover of approximately $182.5 million and achieve a profit of about $40.8 million after becoming operational.

Strategic Expansion and Geographical Advantage

This investment in Morocco represents Guizhou Tyre's second overseas production base, following its factory in Vietnam. Shen Guangjie, a representative of Guizhou Tyre, has stated that the construction of the Morocco factory aims to build upon the successful experience of the Vietnam factory, further optimizing the company's global production capacity layout by establishing a second overseas base.

Tanger Tech has already attracted major Chinese tire manufacturers, including Sentury Tire. By locating here, Guizhou Tyre can not only leverage the local industrial cluster effect but also deepen its presence in the international market through Morocco's unique geographical location.