Morrocco first – Sentury Tire redirects funds earmarked for Spanish plant

Sentury Tire has disclosed that it will invest the approximately RMB 2.8 billion (£313 million) it raised to set up a factory in Spain in the construction of its Moroccan plant instead. The motivation behind this decision, says Sentury Tire, is that while the facility in Spain is still in the “approval process” with no clear indication of when this will conclude, the tyre plant in Morrocco is “progressing well” and has a greater need for capital expenditures.

The plant in Morrocco will have the capacity to produce 12 million passenger car tyres per year. Sentury Tire is dividing the project into two stages, each with an annual capacity of 6 million tyres. According to the tyre maker, it commenced construction of both projects in October 2023 and expects to “ramp-up at the same time.”

According to the implementation schedule, the two projects have respective construction periods of 12 months and 18 months. October 2024 and April 2025 are therefore likely to be the two key time points. After these dates, tyres produced in Sentury’s Morrocco factory will gradually enter the market.