APG Morocco: Chinese Brake System Giant Invests $70 Million in Its First Overseas Factory at Tangier Tech

As global automotive supply chains continue to shift closer to key markets, Morocco is rapidly emerging as one of the world's most attractive manufacturing destinations. Chinese automotive components manufacturer Zhejiang Asia-Pacific Mechanical & Electronic Co., Ltd. (APG) has officially confirmed that its first overseas production facility will begin operations in Morocco by the end of 2026.

With an investment of approximately $70 million USD (around MAD 700 million), the project represents another major milestone for Morocco's growing automotive ecosystem and further strengthens Tangier Tech as a strategic hub for electric mobility and automotive manufacturing.

APG's First International Manufacturing Plant

The new factory will be located in Mohammed VI Tangier Tech City, one of Morocco's flagship industrial parks designed to attract high-value manufacturing and advanced technologies.

Once operational, the facility will manufacture:

• Automotive brake systems

• Electronic chassis control systems

The production will primarily serve European automotive manufacturers (OEMs) and international vehicle producers, allowing APG to supply customers closer to their assembly plants while improving delivery times and supply chain efficiency.

The Morocco project marks APG's first manufacturing facility outside China, highlighting the company's commitment to expanding its global footprint.

Why APG Chose Morocco

According to Cai Junjie, APG's project manager, Morocco offers the ideal balance between local sourcing and Chinese manufacturing expertise.

Speaking to the Financial Times, Cai explained:

"We can procure what we need near factories in Europe at competitive prices."

Several factors influenced APG's investment decision:

• Immediate proximity to European markets.

• Lower logistics and transportation costs.

• Competitive manufacturing and labor costs.

• A well-established automotive supplier ecosystem.

• Preferential access to Europe through Morocco's free trade agreements.

• Modern export infrastructure led by Tangier Med Port, one of the Mediterranean's largest logistics hubs.

These advantages enable APG to improve supply chain resilience while supporting customers across Europe more efficiently.

Strengthening Tangier Tech's Automotive Cluster

APG joins a growing number of Chinese automotive suppliers investing in Tangier Tech, helping transform the industrial city into one of Africa's most important automotive manufacturing clusters.

Major Chinese companies already established in the park include:

• Sentury Tire, one of China's leading tire manufacturers.

• BTR New Material Group, producing advanced cathode and anode materials for lithium-ion batteries.

• APG, specializing in brake systems and electronic chassis technologies.

Together, these investments are creating an integrated industrial ecosystem that supports both conventional and electric vehicle manufacturing.

Morocco's Growing Role in the Global Automotive Industry

Over the past decade, Morocco has become one of the world's fastest-growing automotive manufacturing hubs.

Its strategic geographic location, competitive industrial environment, political stability, and extensive network of free trade agreements have attracted leading international manufacturers and suppliers seeking easier access to European markets.

For Chinese companies, Morocco offers an opportunity to shorten supply chains, reduce shipping costs, improve delivery times, and better meet Europe's evolving requirements for localized production and sustainable manufacturing.

Looking Ahead

Scheduled to begin production before the end of 2026, APG's Moroccan facility represents an important step in the company's international expansion strategy.

The investment also reflects the growing confidence of Chinese automotive manufacturers in Morocco as a long-term industrial partner.

With companies such as APG, BTR, and Sentury Tire establishing operations in Tangier Tech, Morocco is rapidly positioning itself as a strategic gateway connecting China, Europe, and Africa while playing an increasingly important role in the future of the global automotive supply chain.