Taxed from Taiwan, this industrial group will produce in Morocco to sell in Europe

Stainless-steel tube manufacturer Froch Enterprise is preparing a major industrial operation in Morocco. The project covers a site of approximately 90,000 square meters, and the first production trials are expected in the fourth quarter of 2026.

Sales are due to begin in the first quarter of 2027. In its initial phase, the factory will have a monthly capacity of 2,000 tonnes of stainless-steel tubes, primarily intended for industry and construction.

The Taiwanese group does not view this facility as a mere secondary operation. Once fully operational, it could account for between 15% and 20% of its global revenue. Most of the production carried out in Morocco will be exported to Europe.

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This choice is primarily driven by customs considerations. In its official presentation to investors on August 25, 2026, Froch confirms the construction of its Moroccan factory and highlights the tightening of European quotas and customs duties.

The European Union does in fact limit the volumes of steel that can enter under certain quotas. Once the applicable quotas have been exhausted, additional imports may be subject to high customs duties.

The group believes that production located in Morocco will be able to benefit from more favorable trade conditions, subject to compliance with rules of origin and European criteria. Froch refers to a European quota not allocated to a specific country, exceeding 10,000 tonnes. Products manufactured in Morocco could access it without additional duties, within the limit of the available volumes and provided that the rules of origin are respected.

This strategy is similar to that of other Asian groups that use Morocco as an industrial platform to more easily overcome Western trade barriers. The geographical proximity also makes it possible to reduce delivery times to European customers.

A Moroccan factory focused on Europe

Froch already supplies several European companies, but its products are currently shipped from its Asian facilities. The Moroccan factory is intended to shorten this logistics chain while limiting the group’s exposure to European measures directly targeting imports from Taiwan.

The company is therefore not seeking to evade taxes illegally. It is relocating part of its production to Morocco in order to use the trade agreements and quotas to which products manufactured in the Kingdom may be entitled when they meet the required conditions.

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However, the schedule has been delayed by approximately three months. Froch attributes this delay to adjustments in the installation of the equipment and says that no major difficulty threatens the project.

This arrival comes as the iron and steel sectors are also affected by the new European carbon tax and its consequences for Moroccan industry. The factory’s competitiveness will therefore depend both on its customs access to the European market and on its ability to control the carbon footprint of its production.

For Morocco, the project above all provides further confirmation of its role as an industrial base in the immediate vicinity of the European Union. For Froch, producing in the Kingdom makes it possible to turn a European trade constraint into a logistical and customs advantage.