The Indartu programme attracts EUR 89 million of investment with 10 industrial projects and the creation of 426 new jobs
- The Basque Government is incentivising investments in the Margen Izquierda and in Oiartzualdea, classified by the EU as Less Favoured Areas
- In 2016, it will issue a new call worth EUR 8 M in order to bolster industrialisation and generate new jobs.
The Basque Government’s Ministry of Economic Development and Competitiveness has published the outcome of the INDARTU Programme call of subsidies for companies that invest in production and to generate jobs to boost the Margen Izquierda [Left Bank] of the River Nervión and Oiartzualdea zones in the Autonomous Community of the Basque Country.
The call, worth EUR 8 M, has generated an induced investment of EUR 89.1 M with 10 projects that will allow 426 jobs to be created and 2,374 posts to be maintained in industry.
Ask, Precicast, Alstom, Zenten, Lointek, Bombardier, Petronor, Vicinay, Orona and Woco Técnica are the companies that have embraced INDARTU thanks to the investments that the companies will make in the municipalities of Zierbana (2), Barakaldo-Sestao, Ortuella, Irun (2), Trapaga, Muskiz, Sestao and Hernani.
The investments, all of which are industrial, will focus on Chemical Production and Manufacturing, Metal Casting, Metallurgy, Tool Manufacturing, Equipment Manufacturing, Railway Manufacturing, Refining, Metallurgy, Manufacturing Lifting Machinery, and Manufacturing Motor Components.
The results of this programme were announced by the Basque Government’s Minister for Economic Development and Competitiveness, Arantxa Tapia, accompanied by the Deputy Minister for Industry, Javier Zarraonandia, and by the Industrial Development Director, Alejando López Cárcamo-
Industrial companies with new investments and job creation
ASK CHEMICALS ESPAÑA, S.A (ZIERBENA)
Activity-Sector: Chemical production and manufacturing
Description: one of the leading world suppliers of casting chemical products is going to focus the Spanish production at the Port of Bilbao facilities as part of the group’s expansion and growth process.
Total investment: 5,980,000 (Subsidy: 598,000)
Initially 64 people employment and 20 new jobs created..
PRECICAST BILBAO, S.A. (BARAKALDO-SESTAO)
Activity-Sector: Metal Casting
Description: Construction and fitting out of a new plant and the transformation and fitting out of the current plant used for conventional aircraft casting and introducing a new series of integral cast components.
Total investment: 15,289,000 (Subsidy: 1,528,900)
Initial employment: 259 and New jobs: 104
ALSTOM RENEWABLE HYDRO SPAIN (ORTUELLA)
Description: in February 2016, the company will move to its new premises in Ortuella, where it will consolidated its capacity to sell, design and manage integral hydraulic projects, along with manufacturing full generators of that line and electric components.
Total investment: 6,450,000 (Subsidy: 645,000)
Initial employment: 165 and New employment: 40
ZENTEN BERNHARD GROTEN, S.L. IRUN
Activity-Sector: Tool Manufacturing
Description: Manufacturing manual tools aimed at different sectors, such as plumbing, construction, etc… This investment will allow a second production shift to be create and improve warehousing management and grow business and jobs.
Total investment: 1,618,957 (Subsidy: 161,895.70)
Initial employment: 27 and New jobs: 7
LOINTEK HEAVY INDUSTRIES, S.L. ZIERBENA
Activity-Sector: Equipment manufacturing
Description: Company with own product developed through equipment design mechanical and technical engineering.. The main element of the investment to be undertaken by LOINTEK HEAVY INDUSTRIES is a new warehouse located in the Port of Bilbao which will strength the export capacity.
Total investment: 4,250,000 (Subsidy: 425,000)
Initial employment: 0 and New jobs: 25
BOMBARDIER EUROPEAN HOLDINGS TRÁPAGA
Activity-Sector: Railway manufacturing
Description: The Trápaga plant is part of the Bombardier Transportation business unit. The investments seek to increase the production capacity of the Trápaga plant, in order for that increase in workload to lead to a rise in its estimated turnover of up to 100%.
Total investment: 962,000 (Subsidy: 96,200)
Initial employment: 187 and New jobs: 120
PETROLEOS DEL NORTE, S.A. MUSKIZ
Description: The reason for this investment is to improve efficiency. The new turbines to be purchased are going to provide greater reliability and lower maintenance costs. It will mean savings of 145,000 €/year in maintenance costs and very significant savings in energy consumption.
Total investment: 29,776,000 (Subsidy: 2,278,700)
Initial employment: 905 and New jobs: 39
VICINAY SESTAO, S.L. SESTAO
Description: A new plant is seen as a major strategic project, whose total budget stands at EUR 79.5 million, where the technologies, capital goods and expertise will be developed, integrated and implemented to be able to provide solutions for the future challenges of the market.
Total investment: 16,479,247 (Subsidy: 1,187,244)
Initial employment: 105 and New jobs: 20
ORONA, S.COOP. HERNANI
Activity-Sector: Manufacturing lifting equipment
Description: “Fabrika 4.0” project to smartly manage production in order to reduce errors to the minimum and to gain time to manufacture with greater quality and using fewer resources, thus increasing production capacity.
Total investment: 4,852,976.13 (Subsidy: 485,297.61)
Initial employment: 621 and New jobs: 24
WOCO TECNICA, S.A.U. IRUN
Activity-Sector: Manufacturing motor components
Description: WOCO, the German multinational group, specialised in manufacturing parts by plastic and rubber injection moulding, mainly for the car industry. The purpose of the WOCO investment project is to develop and manufacture new product range for one of its leading customers.
Total investment: 3,525,000 (Subsidy: 279,557)
Initial employment: 41 and New jobs: 29
INDARTU Programme Objectives and Characteristics
The new INDARTU PROGRAMME is underpinned, in short, by the following core characteristics:
• Incentivising production investment by new and existing companies to generate jobs, located in those zones, with preference being given to those investments directly linked to improvements in the product transformation process, increased capacities or development of new activities.
• Aimed at zones that the EU has classified as “less favoured” where positive discrimination is allowed in less favoured zones that are more seriously affected by unemployment, either because the impact of the economic crisis has been greater or because there is a structural deterioration situation that hinders their development.
• Job creation is an essential factor in this Programme. It is understood that appropriate limits need to be established to accommodate investments that have an impact in terms of induced and direct employment.
• Special emphasis is placed on the need for the investments to be adequately financed, with a minimum coverage from Own Resources of 25% of the total investments eligible for support.
Furthermore, the funding is in the form of non-refundable grants, which together with the above requirements ensures companies with healthy financial structures and capable of supporting the years prior to the consolidation of the investments.
The subsidies envisaged here are open to large companies and Small and Medium-sized enterprises (SMEs) that meet the characteristic of being manufacturing, transformation or extractive industrials companies and technical service ones (linked to the product-process) attached to the former ones.
Municipalities of the Margen Izquierda Ría del Nervión and Oiartzualdea zones
For the purposes established herein, the River Nervion Margen Izquierda and Orden zones considered to be less favoured are those areas that require differential treatment regarding economic promotion due to their specific socio-economic characteristics and high unemployment rate, either because the industrial crisis has impacted them more intensely or due to a structural deterioration situation.
They will be the Margen Izquierda Ría del Nervión and Oiartzualdea zones includes in the Commission Decision (21.05.2014) on State Aid No. SA 38472 (2014/N) approving the Regional Aid Map for Spain 2014-2020.
Based on that Deicion, the following are Margen Izquierda Ría del Nervión and Oiartzualdea zones in the Basque Autonomous Community:
• Oiartzualdea (Gipuzkoa), made up of the following municipalities: Errenteria, Pasaia, Lezo, Oiartzun, Hondarribia, Irun and Hernani.
• Ría del Nervión (Bizkaia), made up of the following municipalities:: Sestao, Ortuella, Valle de Trápaga, Abanto, Muskiz, Zierbana, Portugalete, Santurtzi, Barakaldo, AlonsotegiAND Erandio
Main job generation and investment requirements
a) The large companies shall make a minimum eligible investment of €3 M and generate at least 20 net jobs; the SMEs shall make a minimum eligible investment of €750,000.00 and generate at least 5 net jobs.. Investments will also be considered by companies that, even though they do not reach the aforementioned minimum eligible investments, generate a minimum of 100 jobs in the case of large companies and a minimum of 25 net jobs in the case of SMEs.
b) That the Own Resources of the company, excluding subsidies, reach at least 25% of the amount of the investment considered to be eligible for funding.
Investment eligible for funding.
Investment eligible for funding is considered to be the acquisition of fixed assets to be incorporated to the assets of the company in the categories of Industrial Property and Patents, Computer Software, Land and Natural Assets, Constructions, Technical Facilities, Machinery, Tools and Other Facilities, and Information Processing Equipment.
Amount of the subsidies.
The subsidies granted pursuant to this Order will be in the form of a non-refundable grant and will be 10% of the investment eligible for funding.
The subsidies will have a maximum limit that, under no circumstances, may exceed the amount of EUR 3,000,000 per company.