A Chinese supplier invests 19.7 million dirhams in its subsidiary in Tangier.
Chinese Group Hubei Leidite Strengthens Industrial Commitment in Morocco with Significant Capital Increase
The Chinese group Hubei Leidite Thermal System is making a substantial commitment to its industrial operations in Morocco by significantly increasing the capital of its subsidiary, HBR Thermal System, which is located in the Tangier Automotive City free zone. This operation involves a cash injection of €1.795 million, equivalent to approximately 19.66 million dirhams, aimed at bolstering the financial resources of its Moroccan entity.
According to a stock market announcement published on Thursday, October 22, the group’s board of directors unanimously approved this decision, with all five members present at a meeting held the day before. This move will raise the subsidiary’s capital from €5,000 to €1.8 million, marking a remarkable increase by a factor of 360.
Capital Increased to Nearly 20 Million Dirhams
This capital injection, sourced from the parent company’s equity, is intended to strengthen HBR Thermal System’s financial means to support its growth in Morocco. Hubei Leidite will retain full ownership of its subsidiary, which will see its corporate name, registered office, and purpose remain unchanged.
However, the finalization of this operation requires the completion of certain administrative formalities, including the registration of the new capital structure in the Moroccan commercial register.
This capital increase exceeds the amount initially envisaged by around 20%. In February 2025, Hubei Leidite announced its intention to establish a wholly-owned subsidiary in Morocco, initially set with a capital of €1.5 million. After consultations with local authorities in charge of regulatory procedures and its advisors, the company was ultimately registered with a starting capital of €5,000.
Components for Electric Vehicle Batteries
Located in Tangier Automotive City, HBR Thermal System operates in a strategic sector crucial for the evolution of the automotive industry. Its activities focus on the design, manufacture, and marketing of components for electric vehicle batteries, electrical accessories, and materials intended for automotive parts.
The scope of its operations also includes applied research for automotive equipment, associated technical services, certain energy-related activities, as well as import and export operations. The company is also authorized to market non-hazardous specialty chemicals that do not require a specific license.
These business areas align with the development of thermal management technologies, which are essential for the operation of electric vehicles and the temperature control of batteries.
A Subsidiary Still in the Startup Phase
The audited accounts of HBR Thermal System indicate a pre-tax loss of 327,300 yuan in 2025, approximately 481,000 dirhams. The group attributes this result to sales levels still far from an industrial scale and considers it in line with its initial forecasts.
The injection of new funds is expected to provide the subsidiary with additional resources to continue developing its local activities. However, Hubei Leidite underscores several risk factors that could impact its operations, including changes to Moroccan regulations, market conditions, and currency fluctuations.
Tangier Automotive City: An Industrial Hub for Export
Situated in the Fahs-Anjra province within the municipality of Jouamaa, the Tangier Automotive City free zone hosts manufacturers specialized in automotive components, focused on international markets.
The establishment of HBR Thermal System fits into this industrial environment, where equipment manufacturers can develop activities related to automobile production and new mobility technologies.
The strengthening of the subsidiary’s equity illustrates its parent company’s intent to consolidate its presence in this ecosystem. However, this alone does not guarantee the immediate commissioning of industrial production capacity in Morocco.
Hubei Leidite: A Specialist in Automotive Thermal Systems
Hubei Leidite is the automotive division of the Chinese industrial group Dongjun, based in Wuhan. The company specializes in the manufacture of thermal management systems, heat exchangers, radiators, engine cooling devices, and liquid cooling plates intended for electric vehicle batteries.
According to data provided by the Dongjun group, Hubei Leidite’s Chinese factories have an annual production capacity of 2.1 million thermal units and associated components.
With this capital increase, the group is enhancing its subsidiary’s financial capabilities and consolidating its foothold in the automotive equipment sector. The future of this project will now depend on the effective development of HBR Thermal System’s activities and its ability to sustainably integrate into Morocco’s automotive value chain.
