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Chinese company signs on for $250m Moroccan tire plant

By Pan Zhongming | chinadaily.com.cn | Updated: 2017-05-24 21:24

NAIROBI, Kenya - A Chinese company signed a $250 million contract to build a tire plant in Morocco.

CAMCE Vice President Hu Wei signed the contract with TIJAN Vice President Ibrahim Khayat and it was witnessed by CAMCE Chairman Luo Yan and TIJAN Executive Vice President Ahmed Khayat.

The tire plant project is in Kenitra city in Morocco. CAMCE will engineer, procure machinery and materials, and construct a pneumatic rubber tire manufacturing facility capable of producing 3 million semi-steel radial passenger car and light truck tires a year.

The scope of the work includes technology transfer, engineering design services, civil construction, installation, procurement of machinery and materials, commissioning, testing and personnel training.

The project is expected to open up a new industry in Morocco and bring tax revenue via an estimated turnover of $240 million per year.

The agreement, which was signed on May 15, will directly create 950 jobs in its first phase. Considering the employment multiplier effect, some spinoff jobs would be created by the project. As the factory expands in the future, it is likely to create more jobs.

Morocco is a very important potential country in the China Belt and Road Initiative. In 2014, the Moroccan government announced the 2014-2020 Industrial Acceleration Plan, which emphasizes China as a key partner. Meanwhile, the project owner is a Saudi enterprise; Saudi Arabia is one of the key countries in the Belt and Road Initiative. In May 2016, the government of Saudi Arabia announced the 2030 Vision to accelerate industrialization and technological innovation to diversify the country's heavy economic reliance on oil and boost economic development. The Belt and Road Initiative also shares the same sprit as 2030 Vision.

The Morocco Tire Factory Project reflects the essence of China-Arabia-Africa cooperation and could become an example of such cooperation.

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