(Yicai) May 8 -- China's Hailiang, the world's largest supplier of copper tubes and rods, will invest USD288 million to build a manufacturing plant in Morocco so as better serve its international clients amid a changing tariff landscape.

The maker of copper pipes and pipe connectors will set up an industrial park to develop and manufacture various copper products in the Mohamed VI Tangier Tech City, the Zhejiang province-based company said yesterday. 

The project, which will also have R&D and warehousing facilities, is expected to take 36 months to finish. It will produce copper products that are not forged or rolled, alloys, tubes, precision brass rods, fittings, as well as copper foil for lithium-ion batteries.

The move will help reduce export and transport costs by side-stepping possible unfair trade barriers and locate production closer to customers, especially in Europe, making a faster response to new demand possible, the firm said, adding that it will lower raw material costs too, as the project is nearer to Africa’s natural resources.

The project should also help to strengthen Hailiang's global influence in the copper processing market as well as make it easier to attract international talent, it added.

Hailiang has 22 plants worldwide, including in the United States, Germany, Vietnam, Indonesia, and several other countries in Europe and Southeast Asia.

The firm’s shares [SHE: 002203] closed 1.9 percent lower at CNY9.01 (USD1.30) each in Shenzhen today. They have fallen almost 20 percent since the end of last year.

Editor: Emmi Laine