What country will be the next center of tire manufacturing? You could make a case for the North African country of Morocco. One tiremaker already has.
Last fall, the first 17-inch and 18-inch passenger tires rolled off the line at Sentury Tire’s new plant in Morocco, a nation of 37.8 million people that borders the Mediterranean Sea to the north and the Atlantic Ocean to the west.
The factory is expected to produce up to eight million tires this year and is part of Sentury Tire’s “strategic move to diversify beyond its successful operations in southeast Asia,” according to a statement from the company.
Interestingly, Morocco came up several times in my conversations with tire company executives during and immediately after the recent SEMA Show.
More than a few of them predicted that Morocco could attract additional tire manufacturing investment as more companies “discover” the country. But why? Here are some facts I uncovered.
First, Morocco, a parliamentary constitutional monarchy, has a vigorous, pro-business economy - the fifth largest in Africa, generating a gross domestic product of around $157 billion USD that expanded by 4% during the third quarter of 2024.
Morocco hosts a number of state-of-the-art shipping ports, including the Tanger Med complex, a hub on the Strait of Gibraltar that’s reportedly the largest port in Africa, with the ability to handle millions of containers each year.
The complex is connected to “a multimodal transport network - rail links, freeways and expressways - for transporting goods and people" across Morocco and beyond, according to information provided by Tanger Med’s operators.
Morocco has a well-developed automotive industry. According to a 2022 report by EOS Intelligence - a business intelligence firm with offices in Slovenia, India, the United States, Brazil and Uruguay - Morocco “has established itself as a leading manufacturing hub for automobiles in Africa, surpassing South Africa as the biggest exporter of passenger cars on the continent.”
A number of global vehicle manufacturers - including Ford Motor Co., Toyota Motor Corp., Volkswagen and Hyundai Motor Co. – have operations in Morocco, as do many global auto parts producers.
“With the capacity to produce over 700,000 vehicles per year and employing about 220,000 people in the sector, Morocco has gained mass appeal as a leading automotive manufacturing hub,” according to EOS Intelligence, which also reports that Morocco has free trade agreements with 60 nations, including the U.S.
Morocco’s trade with the U.S. is particularly healthy, with the country exporting $3.7 billion in goods to America during 2022.
Morocco also hosts operations for “roughly 150 U.S. firms across the spectrum, from multi-nationals to small or medium enterprises” that produce a wide range of products - including pharmaceuticals, aerospace components and other items - according to the International Trade Administration (ITA), part of the U.S. Department of Commerce.
In addition, “oil and gas companies hold exploration concessions (within) Morocco and off-shore, while other energy companies are pursuing new opportunities in renewable energy and liquified natural gas.”
The ITA reports that the American Chamber of Commerce of Morocco “has close to 300 members.”
Will Morocco emerge as an exporter of tires to the North American market? That remains to be seen. As we know, anything can happen in our industry, especially as tire manufacturers race to stay ahead of tariffs.
Sentury Tire certainly is making a big bet on manufacturing in Morocco. As the sands of global trade continue to shift, other tiremakers may consider Morocco, too.
