foreign investment

The President of Barcelona Chamber of Commerce, Miquel Valls, stated on Thursday that the independence process was not affecting Catalonia’s economic recovery. During a press conference, Valls emphasised that such a statement was based on concrete “facts”. He stressed that Catalonia had tripled the amount of incoming foreign investment compared to the Spanish average, and that the Catalan economy had also registered better figures in enterprise creation and business confidence, employment and other indicators showing an economic recovery According to the report on conjecture and economic perspectives, the Catalan GDP grew by 0.7% during the fourth quarter of 2013, whereas the Spanish GDP dropped by 0.1%. Valls also recalled that the consultation vote on the political future of Catalonia would involve “citizens and not businesses”, thus responding to the employers who recently voiced their opposition to Catalonia’s independence.

An investment fund from Qatar has bought the Hotel Renaissance, located in the Eixample neighbourhood of the Catalan capital. Inici del formulariAccording to La Vanguardianewspaper, the transaction was closed at the price of €78.5 million. The Marriott Group will continue running the establishment as the agreement provides for a long-term management, but the Qatari buyer will participate in the most strategic decisions. The hotel passed from having four-stars when it belonged to AC Hotels, to five stars, after being purchased by the Marriott Group. Its workforce expanded considerably to reach a hundred employees after its re-opening in March 2012. The hotel features 211 rooms and had an average occupancy of 67 % during its first opening year.

Last year, Catalonia was the leading Autonomous Community in Spain for foreign tourism spending, which generated €14.02 billion, 13.4 % more than in 2012, according to the Tourist Expenditure Survey (EGATUR) of the Spanish Ministry of Industry, Energy and Tourism. The average spending per stay in Catalonia amounted to €903 per foreign visitor, 4.9% more than in 2012, while the daily spending was set at €120 per person, 1.4 % more than the previous year. Catalonia accounted for 23.7 % of foreign tourism spending in Spain, which reached €59.08 billion. Besides, tourism spending grew more in Catalonia than in any other Autonomous Communities in Spain and is well above the Spanish 9.6 % average increase over the previous year.

In the coming weeks, the management of Volkswagen Group should decide where to produce its latest SUV model, designed in the SEAT Technical Centre in Martorell (Greater Barcelona) and featuring two versions, one for the Catalan brand and the other one for Skoda. The President of the SEAT Workers Committee in Martorell, Matias Carnero, argued that the Catalonia-based factory was the most competitive to produce the vehicle. These past weeks, some sources have asserted that Martorell’s main rival, the Skoda plant in the Czech Republic, would ultimately be chosen. Indeed, it is believed that the President of SEAT Jürgen Stackmann hinted at such a fact in several internal meetings. However, Matias Carnero insisted that the Martorell factory had never been completely ruled out.

Barcelona’s El Prat Airport has ended 2013 strongly to reach a new record of 35.2 million passengers, amounting to a 0.2% increase over the previous year in a context of economic crisis. According to figures released by the Spanish Airport Authority (AENA), in December 2013, 2.3 million passengers transited through El Prat, meaning 5.3% more than during the same month last year. On the other hand, Madrid’s Barajas Airport continues on a downward trend, with its yearly number of passengers dropping to 39.7 million, an 11% decrease. Girona Airport, the second largest in Catalonia, has registered negative figures for the fifth consecutive year. However, this latest decrease has been more moderate (-3.8 %) than during previous years and in 2013 it received 2.74 million passengers.

The Catalan Government put 4 buildings up for auction this Friday, following a plan to rationalise the spaces it uses, reduce spending and increase revenue in order to reduce public deficit. The headquarters of the Catalan Finance Ministry, located in a 8,000 square metre Art-Nouveau building in Barcelona’s Rambla Catalunya, has been bought by an Italian pharmaceutical company through FINAF 92 for €23.2 million. The other building, with a surface of 7,200 square metres, was used by the Catalan Police and is located in front of Barcelona’s Ciutadella Park. It has been bought by the German hotel company MO Düsseldorf Immermannstrasse GmbH & CO. KG for €14.1 million. On Thursday, the Catalan Government announced a plan to reduce its office space by 45% in the coming year by concentrating services. The plan includes selling the most attractive buildings.

Italian Investindustrial has sold 49.9 % of its stake in PortAventura amusement park to KKR, a US investment fund. With this operation Investindustrial has incorporated a long-term partner in the project, while making sure to be the majority shareholder with 50.1 %. The transaction will be effective in January 2014 and is only awaiting regulatory approvals. In the long-term strategy, PortAventura is looking for other agreements to broaden the range of leisure activities and develop further at international level. A few weeks ago it was made public that Investindustrial would join the BCN World project by building and managing 3,000 hotel rooms. Besides, it has been announced that the Cirque du Soleil would give daily shows in PortAventura from the summer of 2014.

Samvardhana Motherson Peguform, which produces components and materials to build cars, has announced a €30 million investment in Catalonia, during the business trip of a delegation led by President of the Catalan Government Artur Mas. The Samvardhana Motherson Group, based in Noida, already owns 4 factories in Catalonia, from the former German company Peguform – which was purchased in 2011 by the Indian multinational. €25 million will be invested in rebuilding and enlarging its Polinyà plant, in Greater Barcelona, which produces car paint and was accidentally burned last September. The remaining €5 million will be allocated to upgrading its Ripollet plant, also based near the Catalan capital. In fact, Barcelona is one of the main hubs in Europe in the car industry, with several manufacturing companies building vehicles and components.

The telecommunications company Cronos Group, based in Hong Kong, is opening its European offices in Barcelona to offer services throughout the continent and worlwide. According to the Catalan Ministry of Business and Employment, the company is expected to create 25 new jobs in the first year operating from the Catalan capital. Currently 10 people are already working in Cronos’ Barcelona offices. The project received the assistance of the Catalan Government’s programme ‘Invest in Catalonia’, which focuses on attracting foreign investment and international business. Cronos’s Managers explained they have decided to settle in Barcelona because it had become the world capital of the mobile phone and of telecommunications, since each year it organises the main international event in this sector. Furthermore, Cronos Group praised the talent and skills of Catalan workers.

The German chemical and pharmaceutical company has picked Barcelona to provide shared services to its subsidiaries in Greece, Turkey and Latin America, which account for 25% of the total group sales. Bayer’s Shared Service Centre in the Catalan capital will expand its tasks and responsibilities by taking over the accounting, controlling and IT services for these geographical areas. The expansion will take place over 2014 and the centre will pass from being in charge of 11 countries to 22, managing over 50 Bayer subsidiaries. The General Manager of Barcelona’s Centre, Erik Schonebeck, stated the project would “consolidate” the 300 existing jobs in the Catalan capital but no further new jobs would be created in the short-run. Barcelona hosts one of Bayer’s 5 global headquarters.

Barcelona City Council and the Catalan Government’s programme ‘Invest in Catalonia’ are among the winners of the 2013 Financial Times’ Foreign Direct Investment (fDi) Innovation Awards, which “recognise the world’s most creative investment promotion agencies”. Barcelona City Council has received an award in the town-planning category thanks to its pioneering role in the development of smart cities: the Catalan capital has prioritised smart-city applications and projects, trying to become one of the world leaders in this category. In addition, ‘Invest in Catalonia’, a programme of the Catalan Government’s agency for business competitiveness ACCIÓ, received the award in the business matchmaking category.

The Italian investment group has announced it will build and manage 3,000 of the 6,000 hotel rooms of the ‘BCN World’ mega resort, the competitor to Madrid’s Eurovegas that is being developed by Veremonte in Salou (Costa Daurada). The $6 billion entertainment resort will be located next to the beach and the PortAventura theme park, which is owned by Investindustrial. After a year of talks, the Italian company has finally decided to join the mega resort project, which will have casinos, hotels, convention centres, luxury shops, restaurants, golf courses and a beach club. The CEO of ‘BCN World’, Xavier Adserà, confirmed that the resort will begin building in the first half of 2014, employing 17,000 people. The hotel group Melià, shopping-mall company Value Retail and casino group Melco Crown Entertainment will build the first phase.

The founder and CEO of technology company GFT announced that they will create 500 new jobs in Catalonia in the coming years. In an exclusive interview with the CNA, Ulrich Dietz, stated that he has “aggressive plans to increase the staff” in Greater Barcelona and Lleida. GFT  specialises in developing technological solutions for the banking and insurance sectors, with a turnover of €231 million in 2012. With several offices in Germany, the company is based in Stuttgart and is present in Brazil, France, Italy, Switzerland, Spain, US and UK. A quarter of GFT employees throughout the world are based in Catalonia. Most of them work in Greater Barcelona, which is the company’s “hub” for the European market. Dietz explained that he has plans to develop Lleida’s facilities, which currently employ 40 people, “significantly”.

Catalonia’s industrial sector decreased by 1.1% in 2012 due to the economic crisis. Catalan companies exported products for €58.28 billion, the highest figure ever. This represented 5.7% more than in 2011 and 15.4% more than in 2008. Exports from Catalonia represented 26.2% of Spain’s total exports in 2012. Furthermore, foreign investment in industrial projects in Catalonia increased by 6.2% last year compared to 2011. Therefore, the highest volume of exports ever and an increase in foreign investment in industrial projects meant that the Catalan industrial sector decreased at a slower pace (-1.1%) than the Spanish average (-2.9%). The lack of access to bank credit is the main obstacle for corporate investments, stated the Catalan Government. The other great obstacle is the poor internal demand.

The Catalan capital will host the certification and inspection lab that the China Certification & Inspection Group (CCIC) will base in Europe to analyse and validate the products that the Asian giant imports. The Chinese company will initially invest €2 million in its Barcelona centre, which will be built in the Zona Franca industrial and business district, located next to the city’s port and airport. The CCIC carries out the inspection, verification and certification of foreign products entering the Chinese market. The news was confirmed on Tuesday by the CCIC’s President, Zhan Li Qiang, in a meeting in Beijing with a business delegation from the Barcelona City Council. A year ago, the Mayor of Barcelona, Xavier Trias, met the CCIC in Hong Kong.