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Its strategic location, close to the main markets of Central Europe and Eastern Europe, will enable Fagor Ederlan to obtain a significant strategic advantage for its products destined for automotive plants in Austria, Germany and Slovakia, thereby improving its offer for customers in those countries. This takeover consolidates the offer from its facilities in Aretxabaleta and Eskoriatza and will serve to complement the growth of its current business activities.

The investment involved, through to 2008, totals 20 million euros to achieve a turnover of 22 million euros by 2008.

The company’s competitive position will be improved as far as winning additional orders from strategic customers is concerned, who Fagor Ederlan did not have easy access to given how far away it is. The company will also be able to increase sales to current customers, who are planning to expand production in the area. This is the case of Fagor Ederlan’s main customers, who plan to expand production in Eastern European countries like General Motors, Renault and the transmission manufacturer Getrag Frod Transmision.

The takeover of ZNSP, the first production platform in Eastern Europe, represents a milestone in the targets set in Fagor Ederlan Taldea/Fagor Ederlan Group’s strategic plan for the four-year period 2005-2008, and is part of a global strategy aimed at establishing an adequate offer capacity in Eastern Europe, Asia and the countries making up NAFTA (Canada, United States and Mexico).

Fagor Ederlan Taldea/Fagor Ederlan Group anticipates a turnover of more than 550 million euros this year, of which 74% will be from international sales. With this new factory, the group will have a total of 14 production plants.

http://www.mondragoncorporation.com