The Shandong Iron and Steel Group (Shangang) has signed an agreement to construct a new steel pipe plant in the North African country of Morocco. The agreement was signed between the company management and the Moroccan Finance Minister at the Moroccan capital, Rabat on Tuesday.
The Chinese steel major plans to invest around $150 million towards building the new plant, which is estimated to have a production capacity of 250,000 tons of pipes per year. As per the agreement, the plant will be built at the 14-acre site in Tangier Exportation Freezone, located south of Tangier, Morocco.
According to Moulay Hafid Elamamy, Minister for industry, trade, investment and the digital economy, all of the plant’s production is meant to be exported. 70% of the production will be exported to European countries, whereas the balance 30% to other African countries. The deal is part of Moroccan government’s initiative to bring in more Chinese investment to the country.
Shandong Iron and Steel Group could not be reached for comment on the strategic investment.
Shangang is principally engaged in the smelting, processing and distribution of iron and steel. The Company's major products are iron and steel products, including sheets, profiles, steel billets, mineral ores, cold and hot rolled steel products, coking products and burning power, among others. It distributes its products in domestic and overseas markets. Shandong Iron & Steel Group Co., Ltd is based in Jinan, China.