Subject to Tariffs from Taiwan, This Industrial Company Will Produce in Morocco to Sell in Europe

Stainless steel tube manufacturer Froch Enterprise is preparing a large-scale industrial operation in Morocco. The project covers a site of approximately 90,000 square meters, and the first production trials are expected in the fourth quarter of 2026.

Commercialization is scheduled to begin in the first quarter of 2027. In its initial phase, the plant will have a monthly capacity of 2,000 tonnes of stainless steel tubes, primarily intended for industry and construction.

The Taiwanese group does not view this facility as a mere secondary operation. Once fully operational, it could account for between 15% and 20% of its global revenue. Most of the production carried out in Morocco will be exported to Europe.

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This decision is primarily driven by customs considerations. In its official presentation to investors on August 25, 2026, Froch confirms the construction of its Moroccan plant and highlights the tightening of European quotas and customs duties.

The European Union limits the volumes of steel that can enter under certain quotas. Once the applicable quotas have been exhausted, additional imports may be subject to high customs duties.

The group believes that production based in Morocco could benefit from more favorable commercial conditions, provided that the rules of origin and European criteria are met. Froch refers to a European quota not allocated to a specific country, exceeding 10,000 tonnes. Products manufactured in Morocco could access it without additional duties, within the limits of the available volumes and subject to compliance with the rules of origin.

This strategy is consistent with that of other Asian groups that use Morocco as an industrial platform to more easily overcome Western trade barriers. Geographical proximity also makes it possible to reduce delivery times to European customers.

A Moroccan Plant Focused on Europe

Froch already supplies several European companies, but its products are currently shipped from its Asian facilities. The Moroccan plant is intended to shorten this logistics chain while limiting the group’s exposure to European measures directly targeting imports from Taiwan.

The company is therefore not seeking to evade taxes illegally. It is relocating part of its production to Morocco in order to use the trade agreements and quotas for which products manufactured in the Kingdom may qualify when they meet the required conditions.

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The schedule has nevertheless fallen approximately three months behind. Froch attributes this delay to adjustments in the installation of the equipment and assures that no major difficulty threatens the project.

This arrival comes as the iron and steel sectors are also affected by the new European carbon tax and its consequences for Moroccan industry. The plant’s competitiveness will therefore depend both on its customs access to the European market and on its ability to control the carbon footprint of its production.

For Morocco, the project above all provides further confirmation of its role as an industrial base in the immediate vicinity of the European Union. For Froch, producing in the Kingdom makes it possible to turn a European trade constraint into a logistical and customs advantage.