Bearing Maker Opens Moroccan Plant to Cut Export Costs
The move helps the manufacturer reduce delivery times and tariff exposure for its European automotive clients.
Updated on Oct. 22, 2026 in Manufacturing
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Hangzhou Radical Energy Saving Technology established its Moroccan manufacturing subsidiary, Radical Bearing Morocco, on September 9, 2026. This move creates a production base in Tangier Tech City designed to expedite supply chains for European automotive clients.
Why it matters
By shifting manufacturing capacity to Morocco, the company aims to bypass transcontinental shipping bottlenecks and mitigate tariff exposure. This strategy prioritizes proximity to major European assembly plants to maintain competitive lead times for critical automotive components.
The new Moroccan subsidiary launches with US$1 million in registered capital against a total projected investment cap of US$30 million. This facility is structured through a Singapore-based holding company capitalized at 10,000 Singapore dollars.
The players
Hangzhou Radical Energy Saving Technology
A Chinese manufacturer focused on industrial energy efficiency and bearing production.
LDK Technology
A Singapore-based holding entity that functions as the sole shareholder for the firm's Moroccan operations.
Radical Bearing Morocco
A newly registered, wholly owned subsidiary established to produce bearings in the Tangier Free Zone.
The details
The firm operates through a multi-tiered legal structure, utilizing a Singapore-based holding company, LDK Technology, to control its Moroccan operations. By locating production at plot 52 within Tangier Tech City, the manufacturer seeks to integrate directly into regional automotive supply chains. This setup allows the company to reduce reliance on long-haul shipping routes while moving production closer to European end-users to manage tariff risks.
Timeline
February 17, 2025: The board of Hangzhou Radical Energy Saving Technology approved the project.
September 9, 2026: The company registered Radical Bearing Morocco in the Tangier Free Zone.
October 21, 2026: Local reports confirmed the unit registration.
Market Landscape
This project follows the broader industrial growth trend in the region, which saw 95 projects approved in Tanger Med in 2024. The investment aligns with an ongoing migration of automotive supply chains into Tangier's specialized economic zones.
Manufacturers serving European markets should monitor whether this proximity shift effectively offsets the overhead of establishing a new international production node. Owners must evaluate the potential for tariff mitigation against the capital expenditure requirements of cross-border expansion.
The takeaway
Proximity to end-markets can serve as a primary hedge against fluctuating global logistics costs and geopolitical trade barriers. Operators should calculate the break-even point for domestic versus near-shore production to determine if local delivery speed justifies the cost of a new legal entity.
Further reading
For more on shifting production strategies, see the Manufacturing section.
Source note: This article includes information reported by The Rio Times.
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