BAMC(SH:601137) Zheng Quan Shi Bao·2025-11-07 18:07Core Viewpoint - The company plans to invest up to $150 million in Morocco to establish a production base for special alloy electronic materials, with an expected annual output of 30,000 tons. The project aims to meet the growing international demand from its top-tier clients and enhance its global operational capabilities [2][3]. Investment Details - The project is expected to commence in October 2026, with a construction period of 36 months and an anticipated return on investment of 16.72% [2]. - The investment requires approvals from both domestic authorities and relevant Moroccan departments [2]. Market Context - The decision to invest in Morocco comes after the company previously planned a similar investment in Vietnam, which was terminated due to unfavorable changes in international trade policies that affected the project's profitability [3]. - The primary target markets for the new production base are North America and Europe, where the company aims to capitalize on lower tariffs compared to other regions [3]. Competitive Advantage - Morocco's favorable trade agreements, including a free trade agreement with the U.S., position it as a strategic location for manufacturing, minimizing tariff impacts compared to Vietnam and other countries [3]. - Other companies, such as Reddick and Haomei New Materials, are also investing in Morocco, indicating a trend of increasing foreign investment in the region to enhance supply chain resilience [3]. Operational Considerations - The company acknowledges the differences in legal, commercial, and cultural environments between Morocco and China, which may pose risks related to regulatory changes and unforeseen circumstances [4]. - The company will closely monitor the investment approval process and implement strategies to mitigate operational risks [4].