A Chinese industrial company seeks to control 80 % of an automobile plant in Morocco with French group ACOME

Xinhongye plans to establish a wholly owned subsidiary in Hong Kong. This subsidiary would then partner with ACOME Automotive to set up a company in Morocco called Morocco Acome Xinhongye Automotive Cables.

The future company, whose headquarters are planned for the Tangier region, would have capital of 10 million euros. Xinhongye would hold 80 % through its Hong Kong subsidiary, while ACOME would hold 20 %.

Its activities would notably include the manufacture of wires and cables, wiring harnesses, plugs and connectors, as well as the processing of certain metals and storage and logistics services. Total investment is capped at 229 million yuan, or approximately 320 million dirhams at the current exchange rate.

Xinhongye’s board of directors approved the transaction on September 3, according to the official stock exchange notice published by the group.

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However, the project has not yet been definitively launched. Xinhongye specifies that negotiations are ongoing and that no formal joint venture agreement has yet been signed. The establishment of the companies and the final investment amount also remain subject to approval by the Chinese and Moroccan authorities.

Equal shares in China, a strong majority in Morocco

The two groups are already working together in China. In October 2024, a subsidiary of Xinhongye and ACOME Automotive established Jiangsu Xin’aike Technology, with capital of 50 million yuan. Each contributed 25 million yuan and holds exactly 50 % of the shares, according to the official document published upon its registration.

The arrangement planned for Morocco would therefore significantly alter the balance between the partners: Xinhongye would become the majority shareholder with 80 % of the capital.

ACOME is not entering unfamiliar territory. The French group has been established in Tangier since 2018. Its factory in the Tangier Free Zone covers 17,000 m², employs 130 people and notably manufactures small-gauge wires designed to reduce vehicle weight, according to data published by ACOME.

The new project is part of the movement of Chinese automotive suppliers establishing operations around Tangier, with several of them choosing Morocco to move closer to their European clients.

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If the authorizations are obtained and the agreement is signed, Morocco will become the second country in which Xinhongye and ACOME operate a joint industrial structure. No launch schedule, production target or number of jobs has yet been announced.