COFIDES will provide financial support to the Basque cooperative RPK to help them establish a production base in China. With this objective, COFIDES will supply 1.25 million euro from their own resources for the construction of the facilities and the acquisition of machinery for a plant in Suzhou, in the Jiangsu province. The project involves a total investment of 2.5 million euro.
The plant will be located in the American Industrial Park in the city of Kunshan, to the north of Shanghai. RPK has chosen this location because of its extensive business network and the numerous Basque companies already established in the same area.
COMMITMENT TO CHINA
RPK’s setting up of a production base in China is part of a strategy based on their customer’s demands, allowing them to expand their operations, commit to growing in emerging markets and diversifying the business.
The COFIDES Chairman, Salvador Marín, highlighted the company’s clear commitment to internationalisation, strengthening their business model and consolidating their growth. He also noted that “the automotive industry is now Spain’s largest export sector.”
The Chairman of RPK, Josu Etxebarria, stated that the company’s establishment in China, which was decisively approved and backed by its partners, will strengthen the global standing of the cooperative, transferring the values and commitments of the cooperative to the new areas, as has happened in the other subsidiaries of the group. He also clarified that “it is a matter of multilocation and not relocation.,The challenge is to establish RPK in the Chinese market, which will lead to growth for the parent company and the other plants, since it is a global market and platform.”
RPK currently has three production plants in Spain, one in Mexico and another in India, as well as an office in Germany. COFIDES also helped to fund the plant in India from its own resources and the FONPYME fund.
The core business of the company is the manufacturing of precision springs and metal technological components for the automotive industry and electrical and household appliances, among others. It is a cooperative which has its head office in Vitoria and which is made up of 121 partners and 600 employees. 85% of its output is exported to Eastern Europe, Germany, Italy and France. Staff at the new plant will initially consist of 13 employees managed by a Spanish executive with experience in the country.
COFIDES is a combined private-public concern, which since 1988 has provided financial support to Spanish enterprises abroad. COFIDES manages the FIEX and FONPYME funds on behalf of the State Secretariat for Trade, within The Ministry of Economy, Industry and Competitiveness. The stockholders include the Bank of Bilbao Vizcaya Argentaria (BBVA), Santander Bank, Popular Bank, Sabadell Bank and CAF (Development Bank of Latin America).