“After Chery, more Chinese investment will come to Catalonia”

Great Wall Motors had to come to the free trade zone. And he didn’t come. We talked about the battery plant, we talked about repairing army armored vehicles. As well as luxury sports cars, electric vans for last mile delivery, which were presented publicly and in the presence of the current Minister of Economy. The free trade zone considered a long list of options that were either rejected by themselves or ruled out as impossible. Did Chery save reindustrialization?

Chery came to consolidate the project of re-industrialization of the Nissan plant. It is true that the journey has not been easy. From the first moment we believed that this should be an industrial, automotive project that would save jobs. This merger was not at all easy, but thanks to the “joint venture” of Ebro and Chery, we achieved it. Of course, we could choose faster and more efficient options rather than inefficient ones such as logistics. But we remained stubborn because we believed that it would be better for the country.

Reindustrialization continued because it went from waiting for a major manufacturer such as Great Wall Motors to establish a multi-brand plant under the HUB project, and ultimately ending with a return to a major manufacturer such as Chery. Because?

It has not been easy, reindustrialization processes need to be worked on, and there is no catalog available to administrations to choose the best option. The landing of Chery is supported by the fact that a Catalan company has already been created there. They are the first Chinese manufacturers to enter Europe and it becomes easier to do so with a local partner. I know this because I saw it with my own eyes.

You highlight Ebro’s role, but he arrives first with Australian financier Goodman and later with Chinese partner Cheri. Why was Ebro necessary in the equation?

Chery’s business plan includes Ebro models, both pickup and van. It is a combination of Chinese technology and manufacturing capabilities with Ebro’s implementation capabilities and knowledge of the local ecosystem. Combining both makes the project strong and gives it a future perspective. The administration must be able to support projects that are just starting in strategic sectors. And here it’s good that we rely on local companies.

If Chery had finally decided to settle elsewhere, such as Italy, where they were also eyeing land, would the reindustrialization have been a failure?

We competed with several locations in Europe and also in Italy.

Which?

It’s not my place to say. The fact that they chose us means that we are competitive. There is a process of landing Asian companies, in which, of course, the automobile sector lacks the leverage that could give free rein to the rest. I am convinced that other Asian projects will appear in our country in the future. Certainly. Of course, there is a debate about what impact this has on Europe’s production autonomy, but in any case it shows that we are very competitive.

He did not answer; it would have been a failure if Chery had chosen another place.

No, that wouldn’t happen. Of course, the rate of power build-up would be much slower and we would have to be much more patient. And in this country, sometimes it costs us dearly. But unless public administrations make these bets, we will never have a European Tesla. We must help our industry.

Was the cycle of a certain political stability that the Generalitat enjoyed during reindustrialization the key to its implementation?

At a general level, it is essential that there is a permanent and stable industrial policy. An example is the National Pact for Industry. When we talk to potential investors, we explain this to them as proof that we have a unanimous commitment to the industry in this country. This is what they want to hear.

Given the political situation that existed in this country in 2017, could an investment like Chery be closed?

In the same year, important foreign investments were made…

But not Cherie’s project.

It is true that important projects have been implemented in this last period, and I attribute this to the industrial policy being pursued. Not a single investor or potential investor asked me about the political situation in Catalonia.

But the political situation now is not the same as in 2017.

I can speak from my time as a “consultant”.

Who brought Chery to the reindustrialization table?

We have had a relationship with Chery for many years, as you know, it has been tried before (José Montilla went to China in 2010 to convince them). This decision is the result of the strategy of China Desk, a division of Acció (the international investment agency Generalerealitat) specialized in the Chinese market. This is the first link of many companies and governments, in this case Chery. And from there we suggested contacting Ebro.

Do you have any major Chinese investments coming up in the coming months?

We have some whose process is going very well, but we are very careful and will explain this when we can. More Chinese companies will appear in Catalonia in the near future. Accio is currently working with 600 potential investment projects around the world.

And how many of them are mature enough to come to Catalonia?

It’s hard to say because ultimately it depends on the decisions made by the matrices. We can be on many lists of opportunities, at the end of the day, that’s what matters. Lately we’ve been at the pools all the time.

Ebro and Chery announced that their initial investment will be 400 million euros (public and private). How many of them are public?

The Generalitat allocated 4.5 million euros for the production of the cars themselves and another 6 million for the training of former Nissan workers. It’s not my turn to talk about the rest now, it will depend on the calls of PERTE and European regulation sets a limit of no more than 10% of investments. I think we need to rethink these restrictions because we are competing with the US and China with one hand behind our back.

Will Chery and Ebro have any tax breaks or incentives?

No.

Chery comes with a promise to create 1,250 jobs, half the number that Nissan retained after its closure. We see this pattern in other secondary processes, where replacement is achieved but with little impact on employment. It happened in Castella with Bosch, it happened in Manle with Electro-jet or in Vilanova with Male. Spare parts are coming in, but there are fewer or far fewer people working on them. Is the reindustrialization of Catalonia successful?

Yes, but comparing the occupancy rate of a mature project with the occupancy rate of another that is just getting started is not the same thing. All these processes will develop and grow, which will require more personnel. In addition, the companies that came are focused on industries with a future, in contrast to the closed projects that did not have one. Be that as it may, for the first time in this country there is a process of reindustrialization, and we are leading it from the Generalitat. Until now, this industry has been allowed to die and, at best, has been replaced by other industries, such as logistics, with much less value added and employment. Reindustrialization is not easy, but the alternative is much worse.

One of the reasons you advocate reindustrialization is that it creates quality employment. Does the Hard Rock project contribute to this?

We have always said that this is not the model we like. This is a city planning process that must follow its procedures, otherwise we may commit a violation or expose ourselves to large settlements. But this is not the model with which we feel comfortable; our model is reindustrialization. This is all that happens, for example, near Vilaseca in the petrochemical industry. And all these future processes, such as the Repsol eco-plant or the electrolyser. This demonstrates that reindustrialization is feasible and that it is moving us towards a better work model.

One of the demands that companies made most often during this period was to reduce bureaucracy. Did you do it?

A lot has been done. We have launched a single business window that covers almost the entire country. Processes 600,000 files per year. The average resolution of these files is 13 days. And among cases of particular complexity, the average resolution period increased from 41 days to 28 days. More than 180 steps of administrative or useless, ineffective or low-value procedures have been eliminated.

Businessmen continue to complain…

In addition, in collaboration with economic and social agents, we developed an administrative optimization plan to identify management bottlenecks, of which we eliminated 130. And yet, we are the first Generalitat government to reduce payment terms below 30 days. All this, which may not be noticed overnight, reduces bureaucracy and simplifies administrative management.