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The Commercial Court No. 1 in Spain, has awarded CNA Group with the assets of appliance maker Fagor Electrodomésticos who plans to take the Fagor business forward.

CNA paid €38.5 million to acquire all Fagor manufacturing lines in the Basque region of Spain. CNA Group said its plan assures the continuity of the well-known appliance brand Fagor, as well as brands Edesa, Aspes, and Splendid.

The CNA Group are best known in the UK for their Cata line of products sold through B&Q, largely in the budget end of the market.

Fagor Electrodomésticos, part of Spain's industrial cooperative Mondragon Corporation, filed for bankruptcy late last year with its French subsidiary, FagorBrandt recently sold to Algerian conglomerate Cevital in June 2014.

CNA said it will also provide continuity of technical support and warranty coverage on all the brands' appliances lines, including cold, laundry, and cooking appliances, small electric housewares, and comfort conditioning appliances.

We have no indication at this time if warranties for products sold in the UK will be honoured since, as we understand it, this was under the control of the FagorBrandt subsidiary and not from Fagor in Spain directly.

At a press conference held at Fagor operations in Arrasate-Mondragon, CNA Corporate Manager Jorge Parladé and Cata Corporation CEO Francisco Martin said their objective is to restart Fagor corporate activities as quickly as possible—in September, with a restart of manufacturing in October.

Parladé and Martin told media members that CNA hopes to bring back 840 jobs over the next four years as it restarts Fagor operations. In the first year the company hopes to hire 434 employees in the Garagarza plant, where it will restart production of laundry appliances, cold appliances, cooking appliances, and dishwashers. Ensuing efforts will focus on restaffing and restarting production in Bergara, Eskoriatza, and Basauri.

Martin, according to Basque media outlet El Pais, told media members that the heaters and boilers plant in Basauri would be the last plant to be restarted—and that another company could conceivably take over that operation. El Pais reporter Agnes P. Chávarri wrote that CNA has been in negotiations to sell full ownership of the plant in Bergara to German-based heating equipment maker Vaillant.

CNA hopes to drive Fagor sales of €200 million by 2017. That is approximately Fagor sales in 2012.

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