Harmontronics Strengthens Its Industrial Presence in Morocco
The Chinese manufacturer Suzhou Harmontronics Automation Technology (Harmontronics) has confirmed its industrial establishment in Morocco with a 100% owned subsidiary based in Tangier. In its semi-annual report for 2026 published on the Shanghai Stock Exchange, the group specifies that its Moroccan subsidiary is registered for the production and marketing of equipment intended for the smart manufacturing industry.
Founded in the Tangier Free Export Zone, this facility serves as a new international hub for Harmontronics, which specializes in automated lines and machines primarily for the automotive and electronics sectors.
A subsidiary focused on production and sales
The Moroccan company operates in a strategic field for the automotive industry, offering solutions dedicated to connectors, wiring harnesses, sensors, and various electronic components.
The Chinese group’s offering spans multiple categories of equipment, from machines for pin insertion on printed circuit boards to systems designed for wiring harnesses, connectors for boards and cables, as well as sensors. Harmontronics also develops automated solutions for certain components used in millimeter-wave radar systems.
The qualification of the Moroccan subsidiary thus endows it with both industrial and commercial roles. However, the group has not yet disclosed the amount of capital invested in Morocco, the number of employees, the size of its facilities, or their annual production capacity.
Tangier at the heart of Harmontronics’ automotive strategy
The creation of Harmontronics Automation SARLAU dates back to the first half of 2024. At that time, the Chinese group explained that it wanted to get closer to its international customers in order to provide them with technical and commercial support directly in their markets.
However, this establishment did not mark Harmontronics’ first steps in Morocco. Since its IPO in 2019, the manufacturer had indicated that it had already completed projects for smart industrial equipment in the Kingdom alongside contracts in Europe, the United States, and Asia.
The permanent establishment in Tangier now provides the group with a base in one of Morocco’s main automotive hubs, as several international equipment manufacturers are also strengthening their production capacities in the Kingdom.
TE Connectivity, a significant client of the Chinese group
Harmontronics has notably reported a strong increase in orders from TE Maroc in 2024, as well as from its Hungarian branch. The Chinese manufacturer’s engineering teams work directly with clients to identify their needs, test equipment, and adapt solutions to industrial processes.
TE refers to TE Connectivity, a global group specializing in connectivity solutions and sensors. The company is one of Harmontronics’ main clients, alongside Aptiv, Amphenol, Kyocera, Yazaki, ZF, and HellermannTyton.
TE Connectivity’s industrial presence in the Tangier region helps explain the rationale behind Harmontronics’ establishment in Morocco. However, it does not confirm that TE Connectivity is the sole Moroccan client of the Chinese manufacturer, as no details about local contracts or their value have been made public.
International operations account for nearly 40% of revenue
The Moroccan establishment fits into an international strategy that has become essential for Harmontronics. The group now indicates that it is present in more than twenty countries and has gradually developed local structures in Germany, Hungary, Mexico, Canada, Morocco, and several Asian markets.
This presence aims to bring commercial, technical, and maintenance functions closer to the industrial sites of its main clients.
In the first half of 2026, the activities conducted abroad generated 96.4 million yuan in main revenue, representing 39.5% of the total. Their gross margin stood at 47%, despite a decrease of 5.3 percentage points year over year.
A challenging first half for the Chinese group
However, the international expansion occurs during a more challenging period for Harmontronics. The group’s revenue decreased by 35.3% in the first half of 2026, amounting to 244.8 million yuan, down from 378.6 million a year earlier.
Net profit attributable to shareholders fell by 76.8% to 5.3 million yuan. Excluding exceptional items, the group even reported a net loss of 13.8 million yuan.
Harmontronics attributes this decline to increased caution among several major clients in the automotive sector, who have cut their investment spending, as well as to pressure on margins.
Nonetheless, the cash situation has improved. Cash flow generated from operating activities reached 157.2 million yuan, compared to negative cash flow of 27.2 million in the first half of 2025.
Tangier could play a growing role in the group’s strategy
For the second half of 2026, Harmontronics plans to focus its resources on higher-value-added activities and continue its international development. The group also intends to diversify its expertise towards automated equipment for the medical sector while exploring telecommunications and fluid connection systems.
In this strategy, Tangier emerges as a Moroccan base for production, marketing, and technical support for the Chinese manufacturer.
However, the future extent of this establishment remains to be clarified. Harmontronics has not yet disclosed the amount of its investment in Morocco, its production capacities, or its revenue targets for its Moroccan subsidiary. The evolution of these indicators will allow for a concrete assessment of the weight that the Kingdom could assume in the group’s international industrial strategy.
