The retail group Inditex that owns Zara will invest €190 millions in Catalonia

Barcelona (ACN).- The retail multinational giant Inditex, which owes Zara, Zara Home, Pull&Bear, Massimo Dutti, Bershka, Oysho, among other brands, will enlarge its logistics centre in Catalonia. The enlargement plan would bring an investment of 190 million euros in a five-year period, between 2011 and 2015. It would also create 500 direct jobs, the majority in the first 2 years. The expansion foresees the construction of a giant warehouse of 110,000 square metres, in which clothes would be hanging. At the end of the expansion, the plant’s distribution capacity will have increased by 60% and there will be 50% more workers. According to Inditex, the centre will become the most modern logistics centre of clothing distribution in Europe. It is located in Tordera, some 60 km North of Barcelona, by the coast. Currently, the Inditex centre in Tordera employs 950 people and has 350,000 square metres. After the expansion, Tordera’s centre will be the group’s second largest, after the one in Galicia focused only on Zara.

Tordera’s mayor, Joan Carles Garcia, told CNA that Inditex’s investment in his town will be of 190 million euros spanned between four and five years. Some of these resources will be used to transform the old warehouse of Fibracolor, which closed two years ago. The building will be transformed into a giant warehouse of 110,000 square metres that will store clothes on hangers. From this centre, the most modern in Europe in its category, cloth will be distributed to the entire world. The warehouse will mainly store products from the group’s brand Massimo Dutti. The construction work will begin immediately because Inditex’s will is to start operating in the warehouse between April or May 2012. For this last reason, according to Garcia, in the first 2 years the group will invest 120 million euros to pay the construction work and the machinery.

Inditex executives met this morning with the President of the Catalan Government, Artur Mas. After the meeting, they confirmed that Tordera’s warehouse will be technologically the most advanced plant in Europe.

Inditex set up in Tordera 10 years ago, as a distributor for Massimo Dutti, Oysho and Bershka. Besides central services, such as management, commercial and design departments, the group uses Tordera to distribute these three brands’ clothes (Massimo Dutti, Oysho and Bershka). Wherever they are made, the products of these three brands go through the Tordera plant. From Catalonia’s centre, they are sent twice a week to the entire world. The three brands together mean a total of 1,700 shops around the globe.

50% more workers

Inditex’s investment will create 500 direct new jobs. The centre staff will increase by about 50%, from the current 950 people to 1,450. In addition, Tordera’s Town Hall estimates that between 200 and 300 indirect jobs will be created as well. The plant’s distribution capacity will increase even more, up to 60%. After the enlargement phase, the plant will be Inditex’s second largest logistics centre, after the one in Galicia focusing exclusively on Zara. Two years ago, Inditex already expanded the centre, reaching the current 350,000 square metres. In fact, because of this, Inditex initially had doubts expanding even more. However, at the end they were convinced to use Fibracolor’s space.

49% of Fibracolor was owned by Inditex. The company closed two years ago and 280 people were fired. Fibracolor was working on clothing tincture. Since then, Inditex and Tordera’s Town Hall have been discussing what to do with Fibracolor’s facilities.

The Catalan Government is grateful to Inditex

Inditex CEO, Pablo Isla, and two other top executives from the group (Ramón Reñón and Jesús Echevarría) met with the President of the Catalan Government, Artur Mas, the Catalan Minister for Business and Employment, Francesc Xavier Mena, and other members of the Catalan Government.

Mas thanked Inditex board for opting for Catalonia again. It is “a firm proof of trust on the economic present and future of Catalonia”, stated Mas. The President said that the Catalan Government would be at the service of Inditex to ease the procedures to start the works in Tordera as soon as possible, considering that the largest part of the investment would be done in 2011 and 2012. Mena emphasised the innovation drive of the enlarged centre, creating a “logistic centre of global level”.

“It is a proof of Catalan economy’s improvement”, stated Miquel Valls

The Chairman of Barcelona’s Chamber of Commerce, Miquel Valls, stated that Inditex’s decision “is proof of Catalan economy’s improvement”. Valls added that in his opinion, Catalonia will continue being Spain’s economic engine. He wanted to emphasise the capacity of Catalonia’s industry to export and focus on internationalisation, which is “the way out for the crisis”, in his words.