A turnover of nearly 2,000 million euros is expected for 2006, it currently employs 11,000 people and will be expanding to 100 countries
Today, Fagor Home Appliances is double what it was the day before yesterday: after purchasing the leading French company Brandt, it has doubled its working team, its production and sales. It is set to achieve a turnover of nearly 2,000 million euros in 2006, it employs 11,000 people and is expanding to one hundred countries by means of its 16 production plants and 12 brands. It has embarked on "a new era".
"We have set our sights definitively on the international market," said Pablo Mongelos, the General Manager of Fagor Home Appliances, yesterday during a press conference to speak about last year's results and Brandt. "The takeover of this company will constitute a milestone." Size is "vitally important" on the international market, and this company in the MCC (Mondragon Cooperative Corporation) is keen to measure up to globalisation.
For 162.5 million euros Fagor has purchased 90% of Brandt, in which it already had a 10% stake. Finance has come not only from its own capital, but also from MCC resources (18% of the total invested) and external credits (55%), and from Tuesday onwards it has plants in Europe, Asia and Africa. "We are the only multinational white goods company in Spain." The new group is poised to produce over seven million home appliances per year, and it will strive to boost co-operation between Fagor and Brandt. "The challenge is to see a tripling of profits soon." Fagor earned 16.8 million euros last year. And over the next three years it wants to achieve a turnover of 8.300 million euros.
It will continue to invest in research and innovation and believes it will be crucial to reduce costs, but not at the expense of working conditions: "We are not going to close down any plants and we are not going to leave here. We have to create wealth and employment in Spain and France, in order to be leaders in the future, too."
Fagor has "a clear commitment" towards society and, innovation, among other things, will enable it to compete with companies that produce more cheaply in Eastern Europe and Asia.
Fagor will be increasing the price of its home appliances by 3% this year, it will be taking the production of some of its bottom of the range products to Poland and will be using a base in China to save money on raw materials.