industrial

Catalan companies exported goods and services worth €5.05 billion in April, which represents a 13.4% growth compared to the same month of 2012. In the first four months of 2013, Catalonia exported €19.17 billion, a 1% increase compared to the same period of the previous year. Looking at figures for the whole of Spain, exports reached €29.40 billion in April, an 18.6% increase compared to figures from April 2012. Regarding the volume of exports reached in the first four months of 2013, Spain exported 76.98 billion, a 7.5% increase compared to the same period last year. The chemical sector led Catalan exports, followed by capital goods and cars.

The President of the Catalan Government announced the initiative which will aim to develop an industry and knowledge cluster of the automation sector. The cluster would profit from the multinational companies based in Catalonia, the country’s industrial sector traditionally linked to cars and bikes, the export infrastructures, Barcelona’s car fair, the Formula-1 racing circuit and the innovation, design and education centres. The new cluster is fully supported by the Catalan Government, since automation is one of the main engines driving Catalonia’s economy. It aims to strengthen the sector’s competitiveness, foster cooperation between companies, facilitate the education and training of professionals, develop innovation and implement strategic agendas such as sustainable mobility and electrical vehicles.

The Port of Tarragona moved 33 million tonnes of goods in 2012, slowly recovering the goods volume it had before the economic crisis. However it has not yet reached the 36 million tonnes it received in 2007. Tarragona is the second largest Catalan harbour and it is the fourth port with the most activity in Spain. It mostly specialises in bulk transport of solids and liquids, mostly cereal and petrochemical products. Furthermore, last year it enlarged its chemicals dock, reclaiming 18 hectares from the sea. The companies Vopak Terquimsa and CLH have confirmed they will operate from the enlarged dock. In addition, the port wants to attract cruisers and US military ships in the years to come.

The Barcelona-based company Applus+, partially-owned by the Carlyle Group and specialized in automobile technical inspections, reports and certificates, has bought the Chinese company EDI. The transaction, whose cost is unknown, allows the company to increase its capacity in the Asian market. The acquisition of local companies is one of the usual tactics by the Catalan corporation to reach new markets worldwide. Applus+ is present in 65 countries already and most of its revenue comes from international markets. Besides, the operation reinforces Barcelona’s position as an international centre of the automation industry.

Tarragona’s intermodal freight station is located within the Bayer factory and it will serve all the companies located in the southern half of the chemical centre. Tarragona is host to Spain’s largest chemical hub, which will be connected by international-standard width railway to Central and Northern Europe once the Spanish Government has built the stretch between this economic centre and Greater Barcelona. This stretch is part of the strategic Mediterranean Railway Corridor, which the Spanish Government has been delaying for years. This main infrastructure will combine a high-speed passenger railway with goods transportation. Once completed, it will connect Gibraltar with Northern Europe via Spain’s Mediterranean ports and industrial centres, including València, Tarragona and Barcelona.

The economic recession has meant that Catalonia’s industrial production index decreased by 2.7% last year, according to the Spanish Statistics Institute (INE). In addition, the note indicated that the Catalan industrial sector has contracted for the last 10 consecutive months. However, Catalan industry had been less affected than the Spanish average, which plummeted by 5.9% in 2012. One severely affected sector was the production of long-life goods, in which car manufacturers are included, which decreased by 7.1% in December, accumulating 28 consecutive months in the red. Another sector with problems is the means of production, with a 7.3% decrease in December and 11 consecutive months of accumulated drops.

After having ruled out Barcelona because unions refused to sign Nissan’s final offer of modifying working conditions and reducing salaries in order to increase competitiveness, the unions made an about-turn. With the Catalan Government’s mediation, the main union signed Nissan’s final offer and the two others (CCOO and UGT) presented their own cost reduction plan, accepting almost all of the company’s requirements, including the dual salary scale. After a day-long negotiation between the Catalan Business Ministry and the unions, CCOO and UGT agreed to sign Nissan’s agreement if the company guaranteed the jobs of the existing workers. Nissan has accepted and now the European branch will put its Barcelona plant forward to the Japanese headquarters, which will soon allocate the new car production.

After Nissan’s announcement that Barcelona would not build its new car model, the Catalan Government and the trade unions have been trying to persuade the Japanese company to change its mind. The six-month negotiation was derailed ten days ago, when Nissan considered the talks to be over as the unions refused to sign its final proposal. However, the company has not announced where the new car will be built yet. The union representing the majority of the Catalan plant’s workers has already signed Nissan’s proposal, but the unions CCOO and UGT – the main ones in Catalonia – have insisted on presenting their own proposal, based on Nissan’s need to make reductions of €30 million. A few days ago, Nissan stated that it was too late, but now it says it will study the union’s proposal to look at the details.

After an 8.3% drop in car sales in 2012, SEAT announced it would lay off 400 temporary workers and it would reduce administration and commercial costs, to the equivalent of 340 additional jobs. Finally, after three days of negotiation, the car company and the workers’ representatives have signed an agreement by which the workers will lose part of the extra hours accumulated but there will not be additional layoffs or a salary reduction. However, the 400 temporary workers will be made redundant and will have to leave the company. Additionally, the Spanish Government has announced that it will double the public budget to stimulate car purchases.

The Barcelona-based brand, which is part of the Volkswagen group, had announced an 8.3% drop of car sales in 2012, compared to 2011, due to the recession in Spain, which is Seat’s main market. The increase of sales in foreign markets could not balance out last year’s results. In order to recover from this drop in sales, the company has decided to slow down the production of new cars and 400 workers are to be made redundant. Seat hired 600 temporary workers a few months ago due to positive results in 2011, two thirds of which will be laid off. The company will discuss its plans with the trade unions.

Trade unions refused to sign the Japanese company’s final offer to increase the competitiveness of Barcelona’s plant by reducing salaries and changing working conditions, so Nissan announced the end of the talks after 6 months of negotiation and meditation by the Catalan Government. Before Christmas, the Japanese company had already warned the unions that talks were coming to an end as the production of the new sedan car needed to be allocated. Back then Nissan presented a final offer, which has however been modified in the last few days. Once the agreement seemed to be imminent, Nissan floated the idea of a two-day reduction in holiday days, which the unions immediately rejected. Nissan warned that its Barcelona plant might now face “a slow-death scenario”.

Nissan is considering allocating the production of a new sedan car to its Catalan plant: a €130 million investment creating 1,000 direct and 3,000 indirect new jobs. However, the company is asking for salaries and working conditions to be adjusted in order to increase competitiveness. Barcelona hosts one of the main factories the Japanese automotive company has in Europe and in May it allocated the construction of a new pickup model, after a previous modification to the working conditions. The talks for the new adjustment have been ongoing since the summer but now they are at a crucial moment, since Nissan is about to make its final decision. The company has just made a counter-offer based on a minor and more progressive salary drop. In addition, it warns unions that without the new model, the company will have to lay off 600 workers as from next year.

The economic crisis hits Catalan industrial areas. In Catalonia there is a total of 35,000 hectares of industrial plots of land. Up to 40% of this surface has no use after four consecutive years of losing activity, and during this time there have been more industrial buildings closing than opening.

Sales of industrial goods to non-EU markets increased by 28% between January and March. Catalan industry reached a record in 2011 by exporting €55.19 billion in goods. However, the sector continues to lose jobs, which makes it more competitive in return. Also, industrial investment increased by 2.4% in 2011.

Compared to the rest of industrialised countries, Catalonia’s industrial sector improved its competitiveness index by 0.7% between October and December 2011, compared to the same period a year earlier. Catalan industrial prices have been improving their competitiveness since 2009.