Owner pulls plug on Spanish appliance-maker

Post by Jeff Stevens on 31st October 2013 in General industry

Owner pulls plug on Spanish appliance-maker

The future of Spanish home appliance manufacturer Fagor is in doubt, after its parent company refused to devise a plan to save it.

The company has hit trouble despite bringing in four million euros in overseas sales in 2011, two-thirds of the revenue for the parent firm Mondragon's industrial division.

Fagor makes white goods, such as washing machines, tumble dryers and dishwashers, and claims to be the fifth biggest manufacturer of such products in Europe.

Spanish laws now mean the company has four months to either find a buyer, or reach a deal with its creditors. Its fortunes have been hit hard by the downturn in its domestic economy, with 2012 sales one-third lower than those five years previously.

Mondragon signalled its lack of interest in keeping Fagor running with a statement which said the company "does not respond to the needs of the market and the financial resources it is demanding would not guarantee its future."

Related articles: