Shandong to build a new pipe plant in Morocco

The Shangang Metallurgical Group has signed an agreement to build a new steel pipe mill in the North African country of Morocco. The agreement was signed between the management of the company and the Minister of Finance of Morocco in the capital of Morocco.

The Chinese plan to invest about $ 150 million in the construction of a new plant, which will have a production capacity of 250 thousand tons of pipes per year. Under the agreement, the plant is planned to be built on a 14-acre site in the Freezone industrial zone, located south of Tangier in Morocco.

According to the Minister of Industry and Trade, Investment and Economy, Moulay Hafid Elamami, all the products of the plant are intended for export. About 70 percent of the production will be exported to European countries, while the remaining 30 percent is planned to be sent to other African countries. The deal is part of an initiative by the Moroccan government to attract large Chinese investment into the country.

Shangang is mainly engaged in smelting, processing and distribution of iron ore and steel. The main products of the company are steel products, including sheets, profiles, steel billets, cold rolled and hot rolled products. The metallurgical group processes mineral ores, coking products and other minerals. It distributes its products to domestic and foreign markets. Shangang, based in Jinan, China, did not comment on the deal.