Chinese Manufacturer Abandons Slovakia Plant for €105 Million Project in Tangier
A Chinese manufacturer of industrial components has scrapped plans to build its factory in Slovakia and is moving to Tangier. Administrative procedures considerably delayed the European project. The investment, which could reach 105 million euros, is now headed elsewhere.
The project had not even reached the construction stage. Eight months after choosing Slovakia for its first overseas production base, Chinese group Hangyu Technology has completely changed its plans. Its board of directors decided on Thursday, October 8, to transfer the investment to Morocco. The future factory is now set to be built in Mohammed VI Tangier Tech City.
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Everything seemed to be on track last February. The industrial group, which specializes in particular in manufacturing metal parts for the aerospace industry, had approved an investment of up to 105 million euros in Slovakia. A local subsidiary had even been set up to carry out the project. But the process took an unexpected turn.
According to the official statement submitted to the Shanghai Stock Exchange, Slovak authorities added new administrative review procedures along the way. The result: considerably longer approval times and a timeline that had become too uncertain for the group. Rather than wait any longer, Hangyu chose to look elsewhere.
What tipped the balance in Tangier’s favor
Morocco had a decisive advantage. Following discussions with local authorities, the Chinese company says it received confirmation that no additional administrative review comparable to the one it encountered in Slovakia would be required. The main conditions for hosting the project were also said to be in place.
That difference was enough to convince the company’s executives. The new site will house forging lines, along with their buildings and industrial equipment. The group plans to manufacture metal parts there for industrial equipment, continuing its production of highly technical components.
The project represents an investment of up to 105 million euros, financed from the company’s own resources and funds it raises. An initial allocation of 300 million yuan, or about 36 million euros, is to be gradually provided to the entity overseeing the project, according to information published by Chinese financial newspaper Securities Times.
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Preparations for the site in Tangier have already begun. Hangyu has signed a preliminary agreement for the land but has not yet finalized its acquisition. Investment and construction permits also remain to be obtained.
In Slovakia, however, the decision has been made: the subsidiary established to host the factory will be dissolved. Since the project never moved beyond the preparatory phase, Hangyu can redirect its resources to Tangier without having to dismantle industrial facilities.
