La Farga Group sets up a new company to produce Electrolytic Copper Rods
February 18, 2008|
La Farga Rod, which will start business next year, is expected to have a turnover of €350 million in its first financial year. La Farga Group is a family-owned holding company that will celebrate its 200th anniversary next year. This coming January it will start producing electrolytic copper rods with an installed capacity of 180,000 tonnes per year, through the new company La Farga Rod. This will join the other group companies: La Farga Lacambra, which manufactures and markets semi-finished copper products from recycled materials, and La Farga Tub, which produces and markets copper piping. In the words of the group’s CEO, Oriol Guixà “This heavy industrial investment by our group consolidates the company’s position through diversification and adds new value to the copper sector”
The holding company has invested €12 million to get the new company up and running. This money has been invested in a new 21,462 m² plant (2,564 m² gross floor area) built alongside the group’s other plants in Les Masíes de Voltregà (Barcelona) and in machinery supplied by the Italian company Continuus Properzi using the latest technology. It will have the capacity to produce 25 tonnes of copper rods per hour. The new company will sell its products in the Spanish market, the south of Europe and North Africa, will create 25 new jobs and is expected to end its first financial year with turnover of €350 million, rising to €500 million in 2009.
La Farga Rod has been set up in response to the opportunity to take advantage of the synergies with other group companies and target new market segments by producing electrolytic copper rods. The company will use copper cathode from mines such as Chuquicamata in Chile, Las Cruces in Spain and Grasberg in Indonesia, and a foundry in Huelva, among others. This type of copper rod has different features to the secondary copper produced by recycling, which allows the company to serve markets such as enamelled wire, thin wire and extra-thin wire, which require a more purified kind of copper.
In addition to the capital invested in the new company, in 2007, La Farga Group invested a further €10 million in the companies it controls. It invested €7 million in La Farga Tub for new machinery that makes it more competitive, improves quality and diversifies the type of products made, plus a new plant with greatly improved material delivery, packaging and dispatch. The remaining €3 million was invested in the environment and to expand production capacity and innovation in the development of new materials used in the high-speed railway industry by La Farga Lacambra. “Our group, which is now 200 years old, is consolidating its leading position in the sector of semi-finished copper goods, in continuous rod casting, and in drawing and cord at European level,” said Oriol Guixà.
The group’s facilities will cover a surface area of 124,000 m², with 275 direct employees. It is expected to end this financial year with overall turnover of €500 million, €400 million from La Farga Lacambra and €100 million from La Farga Tub. The company forecasts a rise in its turnover in 2008 to €850 million, once the third company in the group has completed its first year of operation.
For further information contact:
Carme Sàez
www.lfg.es |
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