Chinese textile manufacturer Shengtai Intelligent Manufacturing Group has cleared two key regulatory hurdles in China for a green textile industrial park in Morocco valued at up to 2.29 billion dirhams, or roughly $229 million, the company said, advancing a project first agreed with Moroccan authorities in March 2025.
The Shengtai (Morocco) Green Textile Industrial Park Project has received an Enterprise Overseas Investment Certificate from the Department of Commerce of Hunan Province, along with a filing notice from the Hunan Provincial Development and Reform Commission, clearing procedural requirements China imposes on outbound investments of this scale. Shengtai cautioned that the final investment figure will depend on actual execution, and that additional approvals are still required before construction can begin in earnest.
The complex will be built through two industrial units in Skhirat and Fez, requiring a combined 34 hectares of land for production workshops and related facilities, according to details of the original agreement. Construction is expected to proceed in phases over a period of no more than five years.
Once complete, the facilities are designed to span the textile production chain from spinning and weaving to dyeing, finishing and garment manufacturing. Planned annual capacity includes 100,000 spindles of high-quality cotton yarn, 10,800 tonnes of dyed and finished fabrics, 15 million meters of woven fabric and 22 million pieces of clothing. The project is expected to generate 7,000 direct jobs and 1,500 indirect positions, for a total of roughly 8,500.
Also Read: Canada Apparel Braces for 50% U.S. Tariff Threat
Shengtai said the investment would help expand its global operations, strengthen its overseas supply capacity and improve its ability to navigate shifts in international trade policy — language the company has used to describe efforts to diversify production away from routes more exposed to tariffs and geopolitical friction. The company also acknowledged risks ahead, including possible delays, financing pressures, changing economic conditions and complications involving partners that could alter or even derail the project.
The park adds to a broader wave of Chinese manufacturing investment in Morocco, which has drawn Chinese capital in recent years primarily into electric-vehicle batteries, components and related automotive supply chains. Textiles now appear to be emerging as a further pillar of that trend. Morocco’s proximity to European markets, its network of free trade agreements, established industrial infrastructure and existing manufacturing base continue to underpin its pitch as an export-oriented production hub linking African and European supply chains.
Shengtai’s plans closely track a separate 2.3-billion-dirham investment agreement from another Chinese textile group, Sunrise, which is also establishing industrial units in Skhirat and Fez for yarn, fabric and clothing production. According to Morocco’s official government portal, the Sunrise project is likewise expected to create about 8,500 jobs in total. Officials have cited strengthening local textile sourcing, cutting logistics costs and delivery times, and improving Moroccan companies’ access to international markets as shared objectives of the two projects.
Taken together, the Shengtai and Sunrise investments underscore Morocco’s push to expand its textile manufacturing base, an industry that ranks as the country’s second-largest industrial employer after automotive, as it positions itself as a nearshoring alternative for apparel brands seeking to diversify supply chains beyond China.