COFIDES and the Basque Finance Institute are supporting Alcorta Forging Group's expansion in the United States. To this end, both entities will provide the company with funds of 4.8 million euros each. COFIDES' funding will be in the form of a joint venture loan through the Fund for Foreign Investment (FIEX).
The company will use these funds to purchase a plant in New Boston (Michigan), as well as machinery and equipment. The company from Gipuzkoa, which specialises in the manufacture of hot-forged metal parts for the automotive industry, will thus increase its production capacity in the American market in order to position itself as a global supplier and provide a service to its local customers.
The transaction involves a joint venture with the Basque Finance Institute, by virtue of a partnership agreement signed in 2019 between COFIDES, the Basque Finance Institute and Basque Trade & Investment to promote the internationalisation of Basque companies.
COFIDES chairman José Luis Curbelo said that "Spanish companies are very competitive in the automotive components sector, given their high level of quality, innovation and experience. It is very gratifying to be able to support a company that aspires to grow and establish itself as a global supplier in a market as demanding and with as much potential as that of North America".
The managing director of the Basque Finance Institute, Javier Arnáez, said that the investment in the Alcorta Group "will have a significant impact in terms of job creation and wealth generation in the region, and this investment will have a positive effect as regards the competitiveness and future of the company. This financing tool, the result of a partnership between the Basque Government and the central government, aims to respond to the needs of Basque companies seeking to expand their business internationally".
The Managing Director of Alcorta, Lorenzo Mendieta, highlighted the fact that "the investment we have made in the United States is consistent with the strategy of diversification, both geographically and in terms of products, that we have been pursuing in recent years. For the first time in the history of this century-old company, we are going to have production capacity abroad, which will help us in our objective of long-term sustainability for the business project".
CONTRIBUTION TO THE SDGS
This project contributes mainly to the achievement of Sustainable Development Goal 9, which concerns Industry, Innovation and Infrastructure, with a particular focus on Target 9.5, which concerns Scientific Research and Technological Capabilities aimed at enhancing scientific research and upgrading the technological capabilities of industrial sectors in all countries.
ABOUT ALCORTA
Alcorta is a family company which has been in business for more than 100 years. It is dedicated to the hot-forge manufacture of metal parts for the automotive industry. Its head office is located in Eigoibar, Gipuzkoa, and it operates through commercial establishments in Germany, the United States, France, the Czech Republic and South Africa. It employs 250 people.
ABOUT THE BASQUE FINANCE INSTITUTE (IVF)
The purpose of the Basque Finance Institute (IVF - Instituto Vasco de Finanzas), affiliated with the Basque Government's Department of Economy and Finance, is to act as an instrument for the financial and public credit policy of the Administration of the Basque Autonomous Community. The IVF was created in 2008 as a public financing entity at the service of public policies and business participation, in synergy with the industrial, business and corporate instruments of this administration.
ABOUT COFIDES
COFIDES, a state-owned company engaging in the management of State and third-party as well as its own funds, pursues a number of aims: internationalisation of Spain’s economy, furtherance of economic development and fortification of the solvency of companies affected by COVID-19. In addition to the Spanish State, its shareholders include Banco Santander, Banco Bilbao Vizcaya Argentaria (BBVA), Banco Sabadell and Development Bank of Latin America (CAF).
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