The Spanish Government and the Generalitat study aid for the new Nissan plant
The Spanish Government, the Generalitat, the Chinese automobile company Chery and the Catalan company Ebro are evaluating in a joint commission the aid for the new plant that both companies have agreed to establish on the former Nissan lands, in the Barcelona Free Zone. This collaboration aims to promote the reindustrialization of the area and generate employment in the automotive sector.
The challenge of Nissan’s reindustrialization
One of the main challenges facing Nissan’s reindustrialization is the lack of financial muscle. To overcome this obstacle, a greater contribution of public funds is being considered, which could be communicated in the future. The arrival of the Chinese automobile company Chery is linked to this additional contribution of public funds, which would strengthen the project and contribute to its success.
Joint Commission and monitoring of the situation
The joint commission, which was established six months ago, has been working to follow up on every issue and doubt raised by Chery and Ebro since its creation. Both administrations, the Spanish Government and the Generalitat, have been attentive to the needs and requirements of the companies involved in the project, with the aim of guaranteeing its success and contributing to the economic development of the region.
Contribution of public funds for private industrial projects
Contributing public funds to private industrial projects is a common practice to make a location more attractive to new operators and share the project risk. In this case, European regulations are being followed that establish control and transparency mechanisms in the allocation of public aid. Both the Spanish Government and the Generalitat are committed to guaranteeing that aid is granted in a fair and equitable manner.
Details about investment and aid
Although the exact amounts of the investment and aid have not yet been detailed, it is expected that the 400 million public-private investment announced by the Spanish Government will include European funds, as well as resources from the government itself and the Generalitat. So far, 21 million euros from Perte VEC I and II have been allocated to Btech and D-Hub engineering, and the Generalitat has agreed to allocate 4.5 million euros from 2021 to D-Hub and Ebro through three aid calls. In addition, six million euros are being invested in the training of former Nissan workers.
Commitment to future contributions
Both the Spanish Government and the Generalitat have expressed their willingness to provide more funds in the future. The Spanish Government has the Perte VEC III and IV, as well as its own instruments such as the Support Fund for Productive Industrial Investment (FAIPP) and aid for innovation and sustainability projects in the field of the manufacturing industry (IDI). For its part, the Generalitat conditions new contributions to the presentation of new specific projects. Both administrations have highlighted that Chery has not yet received any of the aid, since it has not yet presented any specific project.