Chinese auto parts manufacturer Lingyun Industrial has announced plans to establish two production facilities in Morocco. This move is part of its strategy to expand into European and North African markets and enhance its service to overseas clients.
According to a statement from the Hebei-based company, the new factories will specialize in vehicle pipes and body structural components. The body structural parts factory will be developed in partnership with Chinese aluminum products firm Haomei New Materials as a joint venture.
The vehicle pipes facility will target major automakers and parts suppliers, including Tesla, Volvo, Plastic Omnium Auto Inergy, Stellantis, and Magna International. The project is expected to have a registered capital of €7.6 million ($8 million), Lingyun noted.
Meanwhile, the body structural parts factory, with a registered capital of CNY 100 million ($13.8 million), will produce battery housings, high-strength components using roll-forming technology, and other key parts. This facility will cater to prominent automotive brands such as Stellantis, BMW, Mercedes-Benz, Renault, Ford, Volkswagen, and Tesla, the company added.
Lingyun Industrial will own a 51% stake in the body structural parts factory, while Haomei New Materials will hold the remaining 49%. Additionally, Lingyun plans to invest in building production capacity for aluminum profiles, a crucial raw material in automotive manufacturing.
Once operational, the two factories will collaborate with Lingyun’s European subsidiaries to strengthen market reach and optimize delivery logistics. The company, however, has not disclosed specific details regarding the total investment amount, production capacity, or construction timeline.
The partnership with Haomei New Materials is expected to help stabilize the supply of raw materials, reduce costs, and enhance supply chain security. By sharing investment and financing risks, both companies aim to mitigate the challenges associated with overseas expansion.
Following the announcement, Lingyun’s stock [SHA: 600480] saw a 2.4% increase to CNY 15.52 ($2.14) per share in Shanghai trading, while Haomei New Materials [SHE: 002988] rose by 1.3% to CNY 23.50 per share in Shenzhen.
