Bernabé Unda attends the inauguration of the new Danobat offices in China
China now represents the main market for the Danobat Group, which takes in the machine tool division of the Mondragón Corporation
The minister, accompanied by a large AFM delegation, attended the CIMT Trade Show, which involves the participation of 19 Spanish companies, the majority from the Basque Country, coinciding in this event with the president of the Mondragón Corporation. In the Trade Show, he was able to verify the strength of the sector in China and the commitment of this country to a sector that technologically capacitates industry as a whole.
"China is in the fast lane and Basque companies are conscious of the need to participate in this market where high precision machinery is required, such as those produced by the Basque Country. For the Basque Government it is a priority to be close to a sector that capacitates industry as a whole, making it more competitive," the minister stated.
The minister for Industry, Innovation, Trade and Tourism, Bernabé Unda, today visited the pavilions of various Basque machine tool and machine-tool component companies in the CIMT Trade Show (China International Machine Tool Show) in Beijing.
Unda attended the event along with a large AFM delegation (Spanish Machine Tool Manufacturers' Association), which is based in Donostia-San Sebastián. In the trade show, he was able to verify the strength of the sector in China and the commitment of this country to a sector that technologically capacitates industry as a whole.
The CIMT is one of the largest and most influential machine tool events in the world. The trade show involves the participation of 19 Spanish companies, the majority from the Basque Country, that will display new manufacturing technologies in the 1474 square meters of exhibition floor space in the E2 pavilion. The following companies are participating in the trade show: Autopulit, Bost, Danobat Group, Etxe-tar, Fagor Automation, Ipiranga, Ibarmia, Integi, Juaristi, Kendu, Korta, Laip, Lantek, Metra, Nicolás Correa, Spirsin, Shuton, Roscamat and Zayer, members of the AFM or the AMT.
China is a priority market for Spanish machine tool companies. This country is currently the main producer, consumer and exporter in this sector at global level. Growth estimates are so positive that a considerable number of companies that are AFM members already boast commercial and/or production installations within this market.
The minister coincided with the president of Mondragón Corporation, José María Aldecoa, in the Danobat stand, where he stressed the importance of presence in the Trade Show and the Chinese market for a highly developed sector such as the Basque sector.
"China is in the fast lane and Basque companies are conscious of the need to participate in this market where high precision machinery is required, such as those produced by the Basque Country. For the Basque Government it is a priority to be close to a sector that capacitates industry as a whole, making it more competitive," the minister stated. Furthermore, the minister drew attention to the fact that at a time wherein the national market is slowly recovering or maintaining stability, it is important to transfer the industrial potential of the Basque Country overseas.
The minister also attended the inauguration of the Danobat regional offices in the centre of Beijing. The cooperative group, which is highly internationalised, boasts 28 years of experience in China (20 with its own office), with a brand that is widely recognised in the various international markets.
This company incorporates the machine tool division of the Mondragón Corporation and has actively participated in the Machine Tool Institute of Tianjin, where it plays an important role.
China is a key country for Danobat as it has now become the main market for the Basque cooperative, which has shown a strong commitment to internationalisation and the search for new markets.
The new offices, taking in an area of 700 square meters, boast a staff of 28 people, including both commercial and technical personnel, and by the end of the year it hopes to increase this figure to 32 employees.
Danobat has already installed more than 500 machines in China. Over the course of the last year it received orders amounting to more than 30 million euros and it expects to increase this figure to 60 million euros within the space of two years. This level of invoicing represents half of the invoicing of the companies represented in the AFM as a whole. Danobat invoices 290 million euros per year.
The Danobat Group regional offices in China are mainly focused on servicing within the Chinese market. It sells to the railway, aerospace, car and energy sectors, in particular the wind energy sector. These sectors are owned by the state, whereby the client is the Chinese government.
The cooperative, once a representative office, is now configured as a FICE [Foreign Invested Commercial Enterprise], a formula that enables it to import and export and carry out business in local currency. All capital is provided by the company itself.
During the inauguration of the Danobat offices, the minister, addressing the Chinese authorities, drew attention to the Basque Government's policy of looking overseas and supporting the installation of Spanish companies in the Asian country. The Basque Country boasts two SPRI offices in Beijing and Shanghai, which have aided the setting up of 200 Basque business projects in China over the course of the last eight years of operation. Companies linked to the machine tool sector are a clear example in this regard.
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