A Chinese equipment manufacturer invests 19.7 million dirhams in its subsidiary in Tangier.
Hubei Leidite Thermal System Strengthens Industrial Commitment in Morocco
The Chinese group Hubei Leidite Thermal System is reinforcing its industrial commitment in Morocco by significantly increasing the capital of its subsidiary, HBR Thermal System, located in the Tanger Automotive City Free Zone. The operation involves a cash injection of €1.795 million, approximately 19.66 million dirhams, aimed at bolstering the financial resources of its Moroccan entity.
According to a stock market notice published on Thursday, October 22, the group’s board of directors unanimously approved this decision among its five members during a meeting held the day before. This operation will raise the subsidiary’s capital from €5,000 to €1.8 million, marking a 360-fold increase.
Subsidiary Capital Boosted to Nearly 20 Million Dirhams
The capital contribution, drawn from the parent company’s equity, is intended to enhance HBR Thermal System’s financial capabilities to support the growth of its operations in Morocco. Hubei Leidite will retain full ownership of its subsidiary, and the company’s name, headquarters, and objectives will remain unchanged.
However, the final realization of the operation necessitates the completion of the required administrative formalities, including the registration of the new capital structure in the Moroccan commercial registry.
This capital increase exceeds the initially planned amount by approximately 20%. In February 2025, Hubei Leidite announced its intention to establish a wholly-owned subsidiary in Morocco with an intended capital of €1.5 million. Following consultations with local regulatory authorities and its advisors, the company was eventually registered with an initial capital of €5,000.
Components for Electric Vehicle Batteries
HBR Thermal System, located in Tanger Automotive City, operates in a strategic sector crucial for the evolution of the automotive industry. Its activities specifically involve the design, manufacturing, and marketing of components for electric vehicle batteries, electrical accessories, and materials for automotive parts.
The scope of its activities also encompasses 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 specialized non-hazardous chemicals that do not require special licensing.
These business areas are integral to the development of thermal management technologies, which are essential for the functioning of electric vehicles and the effective temperature control of their batteries.
A Subsidiary Still in the Startup Phase
HBR Thermal System’s audited accounts reported a pre-tax loss of 327,300 yuan in 2025, equivalent to about 481,000 dirhams. The group attributes this result to a sales level that remains far from an industrial scale and considers it consistent with its initial forecasts.
The injection of new funds is expected to provide the subsidiary with additional own resources to continue developing its local activities. Nonetheless, Hubei Leidite highlights several risk factors that could impact its operations, including changes in Moroccan regulations, market conditions, and fluctuations in exchange rates.
Tanger Automotive City: An Export-Oriented Industrial Hub
Situated in the Fahs-Anjra province within the municipality of Jouamaa, the Tanger Automotive City Free Zone hosts manufacturers specializing in automotive components aimed at international markets.
The establishment of HBR Thermal System aligns with this industrial environment, where suppliers can develop activities related to automobile production and new mobility technologies.
The strengthening of the subsidiary’s equity reflects its parent company’s intent to solidify its presence within this ecosystem. However, this alone does not lead to the immediate commissioning of industrial production capacity in Morocco.
Hubei Leidite: A Specialist in Automotive Thermal Systems
Hubei Leidite represents the automotive branch of the Chinese industrial group Dongjun, based in Wuhan. The company specializes in manufacturing thermal management systems, heat exchangers, radiators, engine cooling devices, and liquid cooling plates for electric vehicle batteries.
According to data provided by the Dongjun group, Hubei Leidite’s factories in China have an annual capacity of 2.1 million thermal assemblies and associated components.
With this capital increase, the group strengthens the financial resources of its Moroccan subsidiary and consolidates its position in the automotive equipment sector. The progress of this project will now depend on the effective development of HBR Thermal System’s activities and its ability to sustainably integrate into the automotive value chain in Morocco.
