A push to save the industry

It's a shame that industrial companies with strong roots in the region are facing extinction, and that, as a result, the Catalan business community is becoming a tourism monoculture. In an attempt to halt this trend, the Generalitat (Catalan Government) has launched an aid package to save industrial projects that are on the verge of extinction.

Within the framework of the National Pact for Industry, the Government has made more than 5 million euros available to all companies interested in acquiring production units from industrial companies that, for one reason or another, have been forced into bankruptcy.

The initiative is endowed with more than 5 million euros and lasts until October.

The aid lines were launched at the beginning of this year, and interested companies have until October 1 to apply. They can receive a maximum of €350,000 per transaction. Among the requirements, companies must—for obvious reasons—have headquarters or a factory in Catalonia and be engaged in an industrial activity from a long list, ranging from food and beverages, waste management, and textiles to footwear, paper, chemicals, pharmaceuticals, metallurgy, and transportation, among others.

"It's important to note that interested companies must demonstrate that at least 50% of the project is financed with their own resources, bank funds, or third-party contributions," says Yvonne Pavía, CEO of the Pavía Concursalistas firm.

The lawyer adds that the acquiring company must guarantee the maintenance of at least 50% of the jobs—or a minimum of 10—and that there is a commitment not to implement layoffs until two years after the acquisition.

Sources from the Department of Industry explain that the funding for this initiative comes from aid for reindustrialization projects—amounting to €5 million—and from the High Impact aid lines. "The spirit of the Department of Business and Employment is to promote the preservation of productive activity and jobs. We also make custom-made suits, as is the case with Nissan and Ebro," they comment.

Although the latter was a large-scale project, the aid lines for the purchase of production units serve the same purpose. In Catalonia, there are no official statistics reflecting the volume of opportunities available. More than 90% of bankruptcy proceedings end in liquidation—the phase of bankruptcy during which the production unit can be purchased—but it is also true that a significant number of bankruptcy proceedings have no assets, making it impossible to purchase the production unit.

Among the recent transactions in Catalonia, the acquisition of the production unit of IMC Toys, a long-standing toy company from Terrassa, stands out. This acquisition ended up in the hands of the Chinese group Wui Ming, which defeated Taurus's bid. The companies Assured and Motor Tàrrega also recently acquired the production unit of Amac, a company specializing in automotive workshops. In the food sector, the long-standing vermouth company Perucchi also has its production unit for sale.