Madrid, October 20, 2021. Azpiaran Group, based in Biscay, plans to invest €8.3 million to fund the construction of two new production plants in Mexico and Poland. The Basque Finance Institute (IVF) together with Compañía Española de Financiación del Desarrollo, and ELKARGI have funded both investment projects to support the Group's internationalisation, which specialises in all different types of metal stamping technologies, principally destined for use in the automotive industry.
COFIDES will finance €1.84 million from SME Foreign Investment Operations (FONPYME) resources and another €1.84 million from the Basque Trade Institute to improve the SME's production capacity, whose investment policy is defined by technological development and international growth. In particular, the Mexican plant will receive funding worth €440,000 from COFIDES and another €440,000 from the Basque Trade Institute, while the plant in Poland will receive €1.4 million from COFIDES and another €1.4 million from the Basque Trade Institute. With its backing, ELKARGI has funded almost a third of the total.
Both projects are being supported via the partnership agreement signed by ELKARGI, the Basque internationalisation agency (Basque Trade & Investment), part of the IVF, COFIDES and SPRI Group, to boost the internationalisation of Basque companies and which has a funding mechanism worth €100 million.
This project significantly contributes to the achievement of SDG 8, addressing Decent Work and Economic Growth. The Basque metal stamping group, which has created over 150 jobs in Spain, will employ an extra 100 people between both international plants.
Founded in Biscay in 2008, the Azpiaran Group manufactures products for the rail, construction and domestic appliance industries, as well as for the automotive industry, its main market.
For over a decade now, this Group has based its strategy on organic and inorganic growth, as well as on internationalisation, embodied in the opening of a production plant in Poland in 2010, and the incorporation of the plant in Mexico in 2019.
It has a remarkably diverse portfolio of clients, with over fifteen TIER1 multinationals in the automotive industry, among which notably include the Antolín Group, Tenneco, Benteler, Lear, Cikautxo and BATZ, among others.
José Luis Curbelo, Chairman of COFIDES, has expressed his satisfaction with the functioning of the partnership agreement between COFIDES, a public corporation under the auspices of central government, and the Basque development companies. He highlighted that “these projects represent two key objectives for COFIDES in its support to businesses. On the one hand, we want to support SMEs that have a clear international calling so they are a step closer in their global journey and, secondly, we want to boost institutional agreements that can enable closer, more effective partnerships and lead to better capabilities in the business community”.
The Managing Director of the Basque Finance Institute, Francisco Javier Arnaez, assured that the investment in the Azpiaran industrial group “is a significant driving force in the creation of jobs and the generation of wealth throughout the country, with it having a positive impact on investment growth and the future of the company. This financing tool, a result of the partnership between the Basque government and central government, aims to respond to the needs of the Basque companies that are seeking to transport their activities abroad”.
The Managing Director of ELKARGI, Zenón Vázquez stated that “we are supporting the international funding of this project because it involves a company that is diversifying its business and, what's more, it is doing so in international markets that have growth potential. Financial and geographical diversification are key in facing future challenges. The business fabric knows that, with ELKARGI, it also has an international travel partner thanks to this partnership tool between financial entities”.
Lastly, the Managing Director of the Azpiaran Group, Manuel Garcia-Iturri, also expressed his satisfaction at the signing of this important financing agreement. It significantly covers the financial needs to tackle the ambitious investment plan head on, which will see greater production capacity in the Eastern European and Mexican markets, where growth continues to be high in comparison to more mature markets such as the national market, where the bulk of technological know-how and a significant level of industrial activities remain, due to the concentration of businesses there.
