1. No category

Spain: your partner in Europe
Global Market Access from an International Economy
Investment Framework
Business Opportunities
April 2015
0
INDEX
1.
Spain: a highly internationalized economy
2.
Global Market Access
3.
Macroeconomic Situation and Structural Reforms
4.
Business Climate
 Infrastructure and Technology
 Incentives and taxes
 Human capital: Productivity, Skilled Labour Force and Competitive Costs
 Quality of life: Expat setting up
5.
Business Opportunities
6.
ICEX / Invest in Spain
1
1. Spain: a highly internationalized economy
2
1. Spain: a highly internationalized economy
Spain is the world’s 13th-largest economy and the 5th-largest economy in the EU:
GDP worth 1.4 trillion USD
GDP comparison of major economic regions,
USD billions
EU27: 17,372
NAFTA: 19,883
Asia: 13,435
Germany: 3,636
France:
2,807
UK: 2,523
Italy*:
2,072
Spain:
1,359
Japan:
4,899
ASEAN-5:
2,012
Australia:
1,506
BRICs: 15,413
Source: IMF, 2015. Data Referred to 2013
USA:
16,768
NIEs:
3,807
Canada:
1,827
Mexico:
1,261
Russia:
2,097
China:
9,469
Brazil:
2,246
India:
1,877
3
3
1. Spain: a highly internationalized economy
Spain is the 9th-largest exporter of commercial services worldwide (has gone up one
position in the ranking), 4th in the EU, and the 18th-ranked exporter of merchandise
trade (up from position 20 last year).
Commercial Services Exports
USD Millions
2013
2013/2012%
1
United States
662,041
5.63%
2
United Kingdom
292,728
5.04%
3
Germany
286,204
1.51%
4
France
236,269
7.83%
5
China
204,718
9.69%
6
India
150,926
7.50%
7 Netherlands
146,654
3.62%
8
145,356
11.89%
145,274
2.01%
133,316
6.12%
4,644,380
5.63%
Japan
9 Spain
10 Hong Kong
World
Source: World Trade Organization (WTO), 2015.
Merchandise Trade Exports
USD Millions
1
2
3
4
5
6
7
8
9
10
China
United States
Germany
Japan
Netherlands
France
Republic of Korea
United Kingdom
Hong Kong
Russian Federation
….
18 Spain
World
2013
2013/2012%
2,209,007
1,579,593
1,452,711
715,097
671,863
579,687
559,632
541,594
535,548
523,294
…
316,534
18,816,000
7.8%
2.2%
3.4%
-10.5%
2.7%
1.9%
2.1%
14.6%
8.7%
-1.1%
…
7.2%
2.2%
Source: World Trade Organization (WTO), 2015.
4
1. Spain: a highly internationalized economy
Spain, strong and sustainable external sector performance
The weight of exports in GDP has increased from 21.9% (2009) to 32.6% (2014 Q2).
 Spanish exports of goods and services related to GDP in 2013 were higher than in the United Kingdom,
Italy or France.
Exports of goods and services in % of GDP
60
Germany; 50,7
50
40
30
26,5
Spain; 34,1
32,7
30,8
UK; 31,4
Italy; 30,4
27,4
23,9
France; 27,2
20
Japan; 16,2
US; 13,5
10
0
2008
2009
Germany
2010
Spain
France
2011
Italy
2012
UK
US
2013
Japan
Source: Eurostat, 2015.
 A competitive combination: technology, innovation, productivity and lower Unit Labour Costs have lead to a
competitiveness-based expansion of exports.
5
1. Spain: a highly internationalized economy
While the world export market share of Germany, Japan, Italy, or France has declined
during the last decade due to competition from emerging countries, the Spanish share of
world merchandise exports has remained stable.
 Spain increased its quota in international trade of goods in 2013, to 1.68% (1.60 in 2012)
 In 2013 Spain has kept its 3.1% share in the world trade of services
Country share in world export of merchandise trade,
2006-2013
Source: World Trade Organization (WTO), 2015.
6
1. Spain: a highly internationalized economy
Spanish and foreign companies established in Spain focus on EU markets, but they are
increasing their exports and business towards Latin America, USA, Asia, Russia, Africa
and the Middle East using Spain as a platform for Global Business.
In
2013, our exports to non-EU countries maintained the upward trend of the last few
years (+ 37.4% in 2013):
Exports to Africa went up by 8.4% (particularly to Algeria by 11.4% and South Africa
by 33.4%),
To Latin America by 8.6% (especially to Argentina, +36.3% and to Brazil, 28.9%)
To Asia by 10.3%, (of which 4.7% to China, 12.9% to Thailand and 10.7% to
Taiwan)
The EU is still our main business partner, but the slow
growth in Europe has dented
exports in 2014.
During Jan-Oct 2014 exports have grown by 2.1% y-o-y as compared to 6.2%
growth during Jan-Oct 2013.
7
1. Spain: a highly internationalized economy
Tourism:
 Spain is the 2nd country worldwide in revenues and the 1st in Europe.
 Spain ranks 3rd in tourist arrivals worldwide and 2nd in Europe.
GENERATED REVENUE
(INTERNATIONAL TOURISM)
1
2
3
4
5
6
7
8
9
10
Country
2013
(Bill USD)
2013/2012
(%)
USA
Spain
France
China
Macao
Italy
Thailand
Germany
United Kingdom
Hong Kong
World
139.6
60.4
56.1
51.7
51.6
43.9
42.1
41.2
40.6
38.9
1,159
10.6%
7.4%
4.8%
3.3%
18.1%
6.6%
24.4%
8.1%
12.1%
17.7%
5.3%
Source: WTO Tourism Highlights, 2014
INTERNATIONAL TOURIST ARRIVALS
Country
1
2
3
4
5
6
7
8
9
10
France
USA
Spain
China
Italy
Turkey
Germany
United Kingdom
Russia
Thailand
TOTAL
2013
(Mill. People)
2013/2012
(%)
..
69.8
60.7
55.7
47.7
37.8
31.5
31.2
28.4
26.5
1,087
..
4.7%
5.6%
-3.5%
2.9%
5.9%
3.7%
6.4%
10.2%
18.8%
5.0%
Source: WTO Tourism Highlights, 2014
8
1. Spain: a highly internationalized economy
Spain is the 11th-largest economy in terms of accumulated inward and outward FDI
stock in the world.
Outward FDI stock,
USD Millions
Inward FDI stock,
USD Millions
Economy
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
United States
United Kingdom
Hong Kong, China
France
China
Belgium
Germany
Singapore
Switzerland
Brazil
Spain
Netherlands
Canada
Australia
Russian Federation
British Virgin Islands
Italy
Mexico
Sweden
Ireland
World
Source: UNCTAD, WIR, 2014.
Inward FDI stock
2013
Mill USD
Share
4,935,167
19.4%
1,605,522
6.3%
1,443,947
5.7%
1,081,497
4.2%
956,793
3.8%
924,020
3.6%
851,512
3.3%
837,652
3.3%
747,436
2.9%
724,644
2.8%
715,994
2.8%
670,115
2.6%
644,977
2.5%
591,568
2.3%
575,658
2.3%
459,342
1.8%
403,747
1.6%
389,083
1.5%
378,107
1.5%
1.5%
377,696
25,464,173
100%
Economy
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
United States
United Kingdom
Germany
France
Hong Kong, China
Switzerland
Netherlands
Belgium
Japan
Canada
Spain
China
Italy
British Virgin Islands
Ireland
Russian Federation
Singapore
Australia
Sweden
Brazil
World
Outward FDI stock
2013
Mill USD
Share
6,349,512
24.1%
1,884,819
7.2%
1,710,298
6.5%
1,637,143
6.2%
1,352,353
5.1%
1,259,369
4.8%
1,071,819
4.1%
1,009,000
3.8%
992,901
3.8%
732,417
2.8%
643,226
2.4%
613,585
2.3%
598,357
2.3%
523,287
2.0%
502,880
1.9%
501,202
1.9%
497,880
1.9%
471,804
1.8%
435,964
1.7%
1.1%
293,277
26,312,635
100%
Source: UNCTAD, WIR, 2014.
9
1. Spain: a highly internationalized economy
Spain: Inward FDI by country
Stock : EUR Millions
COUNTRY

US, UK, German, French and Italian
Companies are the largest investors in
Spain.

Increasing interest from companies
in Asia (especially from China, India,
Korea and Japan) Latin America
(especially from Mexico and Brazil) and
from the Middle East Countries.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
USA
ITALY
FRANCE
UK
GERMANY
MEXICO
LUXEMBOURG
PORTUGAL
NETHERLANDS
SWITZERLAND
BRAZIL
UAE
SWEDEN
CANADA
JAPAN
BELGIUM
COLOMBIA
URUGUAY
ISRAEL
IRELAND
AUSTRIA
ARGENTINA
DENMARK
OTHER
TOTAL
STOCK 2012
% total 2012
57,308.5
48,605.8
37,124.3
35,455.4
28,973.0
19,465.1
19,241.3
18,749.6
14,740.0
10,580.9
8,812.9
5,445.3
4,999.4
3,778.5
3,613.5
2,771.0
2,765.6
2,456.7
1,260.5
1,172.3
1,004.4
980.0
921.9
31,324.1
361,550
15.9%
13.4%
10.3%
9.8%
8.0%
5.4%
5.3%
5.2%
4.1%
2.9%
2.4%
1.5%
1.4%
1.0%
1.0%
0.8%
0.8%
0.7%
0.3%
0.3%
0.3%
0.3%
0.3%
8.7%
100.0%
Source: Registro de Inversiones, 2014. Data Referred to 2012
10
1. Spain: a highly internationalized economy
Spanish companies are among leading companies in the world:
 3 out of every 5 flights worldwide are controlled using
Spanish air navigation systems.
 Telefonica is one of the largest telecommunications
companies in the world (in terms of market capitalization
and number of customers).
 Santander Bank is the first bank in the Eurozone and one
of the first in the world (stock market capitalization: more
than 90 billion euros) and BBVA now operates in 40
countries.
 IBERDROLA is the 4th-largest utility company in the
world (in terms of market capitalization).
 The Spanish infrastructure sector is a world leader in
foreign markets. Thirteen Spanish companies totalled 80
billion dollars in revenue.
 The Al Shoula Group, a Spanish-Saudi consortium, is to
run the high-speed train between La Mecca – Medina.
 The Panama Canal expansion project has been
awarded to a Spanish-led consortium.
 The Spanish company Abengoa has placed the largest
solar power plant in the world in service in Arizona.
11
1. Spain: a highly internationalized economy
Spain is the 9th-most open country to Foreign Investment according to OECD’s FDI
Restrictiveness Index
CLOSE
OPEN
12
1. Spain: a highly internationalized economy

Over 12,800 foreign companies are currently located in Spain across all
economic sectors

70 of the FORBES Top 100 companies have branches in Spain
13
2. Market Access
14
2. Market Access
Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP)
above the EU-27 average.
Spain grants free access to the world´s
largest market, the European Union: more
than 500 million consumers
Capacity for consumption of goods
Country
Advantages of operating in the EU:

Intra-European duty-free market.

Free movement of goods and
services, capital and persons.

Single currency: EURO.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
United States
China
Japan
Germany
France
United Kingdom
Brazil
Russia
Italy
India
Canada
Australia
Spain
Mexico
Korea
GDP per capita
RK
5
92
21
14
22
20
78
57
30
131
8
9
32
65
26
USD
53,101
9,844
36,899
40,007
35,784
37,307
12,221
17,884
30,289
4,077
43,472
43,073
29,851
15,563
33,189
Source: IMF 2014
15
2. Market Access
The best European platform for doing business with Latin America:
17 Agreements to Avoid Double Taxation
in Central and South America: Argentina,
Bolivia, Brazil, Barbados, Chile,
Colombia, Costa Rica, Cuba, Dominican Republic,
ElSalvador, Ecuador, Mexico, Panama,
Jamaica, Trinidad & Tobago, Uruguay, Venezuela.
20 Agreements for Protection and
Promotion of Reciprocal Investments
Bolivia, Colombia, Costa Rica, Cuba, Chile,
Ecuador, El Salvador, Guatemala, Honduras,
Jamaica, Mexico, Nicaragua, Panama, Paraguay,
Peru, Dominican Republic, Trinidad & Tobago,
Uruguay, Venezuela and Argentina.
Excellent communications and
infrastructure: Madrid concentrates around
35% of total air traffic between Europe &
Latin America.
Agreements for
Protection and
Promotion of
Reciprocal Investments
Agreements to
Avoid Double
Taxation
16
2. Market Access
Why is Spain a perfect hub for doing business in Latin America?
1. Common historical, cultural and linguistic
roots. Institutional network relationships.
2. Strong economic and business ties:
Spanish companies have invested in strategic
sectors in Latin America (banking, utilities,
communications and transport, building
industry, airport management, etc.)
3. Good communications: Spain is a major
connecting hub for airlines traveling between
America, Europe and Middle East.
4. Multinational companies are increasingly
choosing Spain for their Latin American
headquarters.
5. Spain has become the European HQ for
Latin American multinational companies.
6. In the USA there are more than 50 million
people working in Spanish.
17
2. Market Access
Spain is the world´s 2nd-largest investor in Latin America among European countries.
Spain: Top- Outward FDI Stock
by country EUR Millions
Latin America and the Caribbean:
origin of FDI
Others
36%
USA
24%
Latin
America
JapanSpain
14%
4% 5%
Netherlands
11%
Canada
6%
2011
2012
% TOTAL
2012
1 UK
51,882
59,342
14%
2 BRAZIL
60,157
56,692
13%
3 USA
52,534
53,884
12%
4 NETHERLANDS
30,764
36,496
8%
5 MEXICO
26,966
29,202
7%
6 PORTUGAL
22,159
21,705
5%
7 FRANCE
15,199
15,789
4%
8 LUXEMBOURG
26,406
14,223
3%
9 SWITZERLAND
15,105
13,615
3%
10 ARGENTINA
15,183
12,976
3%
11 CHILE
12,192
12,405
3%
12 GERMANY
21,011
10,160
2%
13 VENEZUELA
4,960
9,181
2%
14 COLOMBIA
6,231
6,654
2%
15 HUNGARY
2,642
6,331
1%
16 PERU
4,228
5,716
1%
17 AUSTRALIA
5,317
5,462
1%
18 CHINA
4,496
5,172
1%
19 ITALY
4,807
5,054
1%
20 POLAND
3,848
4,792
1%
447,291
438,359
100%
TOTAL
Source: ECLAC, 2014.
Source: Spanish Ministry of Economy and Competitiveness, 2014.
18
2. Market Access
Many Spanish companies have a strategic position in key sectors in Latin America
(ICT, energy, finance, infrastructures, etc.)
19
2. Market Access
Some multinational companies set up in Spain to manage their operations in Latin
America or the EU.
In addition, Spain has become the European Headquarters of Latin-American
multinational companies doing business in Europe and MENA countries.
• LATIBEX: the single international market for Latin American securities
regulated by the Spanish Stock Market.
20
2. Market Access
Spain is a suitable platform within the European market for doing business with
North- African, Mediterranean, and Middle East countries:
• 19 Agreements to Avoid Double Taxation: Albania, Algeria, Bosnia and Herzegovina Croatia,
Cyprus, Egypt, France, Greece, Israel, Italy, Kuwait, Malta, Morocco, Montenegro, Saudi Arabia,
Slovenia, Tunisia, Turkey, United Arab Emirates.
• 15 Agreements for Protection And Promotion of Reciprocal Investments: Albania, Algeria,
BosniaHerzegovina, Croatia, Egypt, Jordan, Kuwait, Lebanon, Libya, Montenegro, Morocco,
Slovenia, Syria, Tunisia, Turkey.
• Euro-Mediterranean
Association Agreements with
Egypt, Israel, Jordan, Lebanon,
Morocco, Tunisia and Algeria for
the gradual liberalization of
trade in the Mediterranean area.
Euro-Mediterranean Association Agreements
Agreements for Protection and
Promotion of Reciprocal
Investments
Agreements to Avoid Double
Taxation
21
2. Market Access
Key Role of the Spanish Canary Islands Special Zone (ZEC) as a commercial and
logistic hub with Africa

Geo-strategical location: On the Southernmost
border of the European Union (EU)

Strong historical and commercial ties with Africa
and America

Authorized by the European Commission in
January 2000

Tax benefits for ZEC entities.

Europe’s most beneficial tax regime (4% corporate tax rate).

Excellent communications and services infrastructure.

Interesting tri-continental logistic platform to Africa, Latin America
and Europe
www.zec.org
22
2. Market Access
Top ranking destination cities according to investment projects
Global Location Trends. IBM Global Business Services 2012
Source: Global Location Trends. IBM Global Business Services. 2012. (Projects of less than 10 jobs were not included
23
3.
Macroeconomic
reforms
situation
and
structural
24
3. Economic policy and structural reforms
The Spanish economy is undergoing a significant adjustment and is in the process
of correcting accumulated imbalances
.
25
3. Economic policy and structural reforms
Spanish economic policy: reform calendar
Financial System Reform
Source: The Kingdom of Spain’s Economic Policy Strategy and Funding Programme. Tesoro Público
26
3. Economic policy and structural reforms
Reforms for Competitiveness
Public Sector Reform
Financial System Reform
Fiscal consolidation at all levels of Administration
Provisioning system redressed and restructuring
process completed
Competitive Labour Costs
Labour market reform
Measures to foster growth,
competitiveness and entrepreneurship
Rectification of imbalances and recovery from
recession, with increased competitiveness and
sustained growth
Resident and Work Permits
Transformation
of Spain Growth
Results of the structural
reforms
Model
Law on visa and work permits and flexible
application to foreign investors
First Results
27
3. Economic policy and structural reforms
Public Sector Reform: Fiscal Consolidation at all levels of Administration

Strengthening the structural fiscal framework:

Constitutional Reform pioneered adoption of the Fiscal Compact.

Budgetary Stability Law provides for further fiscal discipline and far‐reaching monitoring and
enforcement tools.

Independent Fiscal Authority.

Measures to increase income and reduce expenditure at all levels, with the firm aim of achieving
the deficit goal agreed with the EU (Pension System Reform, Reform of the Public Administrations).

A Fiscal Reform to boost job creation and revitalize the economic growth. The Tax collection
expected to increase 5.4% y-o-y, roughly in-line with the observed increase in 2014 despite cuts in
tax rates (Corporate Income tax rate is reduced to an interim 28% in 2015 and the definitive 25% in
2016)

Spain has carried out the largest fiscal consolidation effort of all the G-20 nations.
Source: Ministerio de
Hacienda y
Administraciones
Públicas
28
3. Economic policy and structural reforms
Adjustment and recapitalization of the financial system

In the Spanish Financial System, Entities could be divided into two groups.
 The core of the financial system is mainly composed of the largest and internationalized
Spanish Banks with an outstanding performance during the financial crisis.
 The local saving banks – Cajas de Ahorros - has shown structural vulnerabilities and the highest
exposure to real estate. The Government has undertaken a restructuring process.

In the last two years the provisioning system has been redressed and the
restructuring process was completed at the end of 2013.
 Transparent and independent evaluation of the IMF and external risk evaluation of the whole asset
portfolio. 70% of the Spanish financial sector is sound and does not require additional capital.
 The clean-up of under-capitalized banks has required an injection of €41.3 bn of public funds (less 4%
of GDP).
 Segregation of the troubled assets of banks that need public support for their recapitalization (volume
estimated at €50.781 mn.) and transfer to an asset management company (SAREB) with majority of
private capital (55%).
 Increase in provisions and capital buffers on real-state exposure.
 The total number of entities in the financial sector, excluding credit cooperatives and
foreign branches, has decreased from 50 in 2009 to 12 at the present time.
 Spain is the country with the second-best score from the tests by the European Single
Supervisory System and the best score in terms of the asset quality assessment.
29
29
3. Economic policy and structural reforms
Labour Market Reform:

Fostering Labour flexibility and productivity at company level.

Firm-level salary bargaining prevails over national, regional or sector collective agreements.

Collective dismissals without administrative authorization are allowed for firms posting falling profits
for three or more consecutive quarters and elimination of procedural wages.

Convergence and reduction of dismissal costs in line with EU(27) average.

Fair dismissal: severance pay of 20 days per year, up to 12 months

Unfair dismissal: severance pay of 33 days per year, up to 24 months. This means a reduction of
26.6% in the paying severance

Simplification and clarification of the regime for individual and collective dismissals due to economic
circumstances relate to sales, revenues trends.

Creation of a new permanent contract directed at SMEs

Incentives and tax relief for job creation: €500 exemption for employers’ contributions for
common contingencies to the Social Security when the worker is hired under a full-time, open-ended
contract. This exemption applies for two years.
Recent trends in the labour market

The labour market is adapting rapidly, spurred by recent legislative initiatives: more part‐time jobs
& lower percentage of employees with temporary contracts, as well as decelerating nominal and
real wages

Sharp reduction in Unit Labour Costs as a continuation of decreasing wages in some sectors and
sharp increase in labour productivity
30
3. Economic policy and structural reforms
Measures to foster growth, competitiveness and entrepreneurship

Law of Guarantee of Market Unity: eliminates the fragmentation of the national market, and
enables a convergent nationwide product/service regulation across all regions

Reform of the public administration services which is still under way.

Liberalization of the retail sector. No restriction on commercial opening hours in areas of
commercial attractiveness; increase of the number of opening days.

Deregulation of professional services.

Plan on Fostering entrepreneurship and business environment: measures to support
entrepreneurs, SMEs and self‐employed workers.

Significant reduction of the red tape to start a business.

The authorization of visa and residence permits will be made quicker and easier on grounds of
economic interest

National Commission of Markets and Competition: incorporates all sector regulatory bodies and
the National Commission of Competition .

Education reform on Improving the quality and results of Education and improves Vocational
Training: Updating of qualifications, modernization of tools and gradual implementation of dual
training.

Law to De-index the Spanish Economy: Decoupling of the public administration service prices and
fees from the CPI (consumer prices index).

Strengthening of the Tourism Sector: A comprehensive National Tourism Plan (PNIT) for the period
2012-2016 has been approved.

Reform of the Electricity Sector
31
31
3. Economic policy and structural reforms
New specific framework for qualified immigration and investors
It is based on an agile and specialized system for visa and authorization concessions.
VISA AND AUTHORIZATION CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Scientists and researchers
Intra-corporate transferred employees
GENERAL REQUIREMENTS
THE PROCEDURES
Not being in an illegal situation in Spain
10 days for visas and 20 days for authorizations
Being 18 years old or older
A single authorization for living and working in Spain
Not having criminal records
Valid for the whole of Spain
Public or private health insurance in Spain
Enough economic resources.
The family will be able to apply at the same time
Freedom to live in Spain: Granted residence and work permits authorization
Source: http://extranjeros.empleo.gob.es/es/UnidadGrandesEmpresas/folletos/index.html
32
3. Economic policy and structural reforms
FIRST RESULTS

In 2014Q4 the Spanish economy grew by 0.7% confirming its accelerating trend. As a result, in 2014
GDP grew by 1.4%, above the Government’s estimate, and at the upper end of analysts’ projections

Current Account Deficit: from roughly -10% in 2007 to a current account surplus in 2014. The current
account has registered its second consecutive yearly surplus, +0.1 pp of GDP, supported by falling
oil prices and accelerating real goods exports.

The Aggregate Balance of the Capital Account and the Current Account in 2014 shows Spain’s net
lending capability vis-à vis the rest of the world of € 5.600 M in contrast with the borrowing needs of
5,834 million euros recorded in 2012.

Spanish goods exports grew by 2.5% year-on-year in 2014 to 240.03 billion euros, a new record for
annual export figures. In real terms the growth was even greater - at 3.5%. This positive result in
terms of exports exceeded the rate of growth posted by European exports (1.3%) and Eurozone
exports (1.8%), as well as those of such countries as Italy (2%), France (-0.2%) and the United
Kingdom (-11.1%). German exports rose by 3.9% while, beyond the EU, US and Japanese exports
grew by 2.8% and 4.8%, respectively.

The ongoing geographic diversification of the Spanish exports pushes the increase of sales abroad:
In 2014, our exports to non-EU countries grew for the fifth year in a row (0.2% year-on-year in 2014)
despite the economic weakening in Latin America and some African countries. As a result, exports
to non-EU countries have increased their share in Spanish exports from 27.5% of the total in 2005 to
36.6% in 2014.

Foreign productive investment amounted to 17.63 billion euros in 2014, 9.8% more than in 2013
(16.05 billion), according to data from the Foreign Investment Register of the Ministry of Economy
Affairs and Competitiveness.
33
3. Economic policy and structural reforms

The falling Unit Labour Costs in Spain are helping to gain competitiveness and to lower export
prices. Nominal unit labour costs have declined by 6.9% since the peak in 2009, as a result of
wage moderation and especially of increases in productivity (+2.3% in 2013). According to
Eurostat, in the first three quarters of 2014, Spanish Unit Labour Costs have declined by 1.2%, by
0.1% and by 0.4%, while they have rose by 0.7%, by 1.0% and by 1.1% in the euro area.

The rising productivity is explained not only by labour shedding, but also because of gains in Total
Factor Productivity. In this sense, the European Commission (source AMECO) shows that TFP
increased in Spain in 2014 (+0.77%), a higher expansion than that of the EU-28 (0.40% in 2014),
Germany (0.66 %), France (-0.21%) or Italy (-0.40%)

Labour Force Survey:


In the last 12 months, employment has increased by 433,900 persons.

For every three new jobs created in the European Union, two of these are created in Spain.
The Construction Sector has accelerated its adjustment:

Real estate prices have fallen on average by approx 30 % in nominal terms since the peak in 2008.

Significantly More Houses Sold Than Started Or Finished: gradual reduction of unsold stock.

The gross value added generated by the construction sector is expanding since 2014Q2, for the first time
since 2008

The differential of the 10-year bond compared with the German bond has gone from over 600
basis points in August 2012 to around 100 basis points.

World Bank’s Ease of Doing Business 2014, Spain ranks 33rd (from 52nd in 2013) of a total of 185
countries.
34
For more information about macroeconomic
situation and economic policy, please log on
to:
www.tesoro.es
and
www.thespanisheconomy.com
35
4. Business climate
o Infrastructure and Technology
o Incentives and taxes
o Human capital: Productivity, Skilled
Labour Force and Competitive Costs
o Quality of life: Expat setting up
36
4. Business climate
o
Infrastructure and Technology
37
4. Business climate: Infrastructure & Technology
Airport Network
250 airlines have scheduled flights, operating out of the country’s 47 airports, with Madrid
and Barcelona the main hubs.
Source: Eurostat: Last data available 2013
Country
Passengers on board
United Kingdom
Germany
Spain
France
Italy
Turkey
Netherlands
Switzerland
Norway
Greece
Sweden
Portugal
Denmark
Belgium
Austria
Ireland
Poland
Finland
210,784,792
181,879,734
158,072,126
138,872,882
116,332,421
112,215,716
58,316,239
44,338,021
37,229,490
34,021,165
31,654,684
29,451,958
27,575,531
26,599,120
25,827,030
24,644,846
23,298,404
16,606,783
38
4. Business climate: Infrastructure & Technology
Railway Network
Spain is the 3nd largest worldwide (1st in Europe) in High-Speed Network and the European leader with more
than 2500km in service, traveling at an average commercial speed of 222 km/h, higher than that of Japan
(218 km/h) and France (216 km/h). And a total railway network over 15,500 km.
According to The Global Competitiveness Report (World Economic Forum), Spain has one of the best indexes
of rail road infrastructure Quality in the world, and one of the best subway systems in major cities.
Railway Network
High-Speed Lines in the World (kilometres)
0
2000
4000
6000
8000
10000 12000
China
Japan
Spain
France
Germany
Italy
Turkey
South Korea
USA
Taiwan
Belgium
Netherlands
UK
Switzerland
Source: ADIF
Source: International Union of Railways. Updated Sept 2014
39
4. Business climate: Infrastructure & Technology
Road Network
Spain has the largest EU highway network with 14,701 km. According to The Global
Competitiveness Report (World Economic Forum), Spain has one of the best indexes of
Quality of roads in the world.
Length of Motorways (kilometres 2012)
Spain
Germany
United Kingdom
Portugal
Austria
Croatia
Poland
Finland
Slovenia
Bulgaria
Slovakia
Norway
Romania
Lithuania
Cyprus
Estonia
0
5000
10000
Source: Eurostat 2014. Last data available.
15000
20000
40
4. Business climate: Infrastructure
Main Port Facilities
Excellent maritime connections, with 46 state-own ports on both the Atlantic and the
Mediterranean coasts, with 5 ports among the Top-20 container ports in Europe (Valencia,
Algeciras, Barcelona, Las Palmas and Bilbao). According to The Global Competitiveness
Report (World Economic Forum), Spain has one of the best indexes of Quality of port
infrastructures in the world.
Container traffic for European ports
(in TEU)
Source: European Sea Ports Organization. Ranking based on TEU
(total number of actual twenty-foot equivalent units) of 2012
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
PORT
Rotterdam
Hamburg
Antwerpen
Bremerhaven
Valencia
Algeciras
Le Havre
Zeebrugge
Genova
Barcelona
La Spezia
Gdansk
Marseille
Las Palmas
Sines
London
Göteborg
Leixoes
Bilbao
COUNTRY
NL
DE
BE
DE
ES
ES
FR
BE
IT
ES
IT
PL
FR
ES
PT
UK
SE
PT
ES
2013
11,621,249
9,257,358
8,578,269
5,830,711
4,327,838
4,342,998
2,486,264
2,026,270
1,988,013
1,720,384
1,300,432
1,177,626
1,099,271
1,017,378
931,037
929,031
858,497
626,194
606,827
41
4. Business climate: Infrastructure & Technology
More than 80 Technology Parks
The main sectors of the
companies located in the Parks
ICT
Medicine/Health
Agriculture/Biotechnology
Technology centres/R&D
Aeronautics/Automotive
Business Centres
Engineering/Consultancy
Industrial
Energy/Environment
Training/Human Resources
Electronics
Others
66 parks in the Association of Science and
Technology Parks of Spain, hosting 6286
companies
Asturias
2
2
Biscay
Cantabria
2
1
Álava
Pontevedra
1
Guipúzcoa
1
1
Orense
1
1
23%
1%
2% 3%
4%
4%
Gerona
Huesca
1
Lérida
1
Valladolid
1
1
Saragoss
a
Salamanca
28%
1
1
La Rioja
León, Burgos
and Valladolid
1
Madri
d
2
2
Guadalajara
Teruel
1
1
1
15%
2
7
6
Barcelona
Castellón
Valencia
Palma de Mallorca
Badajoz
4%
5%
6%
1
1
2
Jaén 1
Córdoba
1
5%
Huelva
2
2
1
Granada
1
Cádiz
2
Tenerife
Fuerteventura
1 Gran Canary
1
1
Source: Association of Science and Technology Parks of Spain 2013
Murcia
2
Seville
1
2
Alicante
1
1
Almería
Málaga
1
Parks at full performance
Parks in development
42
4. Business climate: Infrastructure & Technology
Technology Adoption by Companies
Whatever the size of the company, Spain leads the field in technologically enabled
companies
Broadband penetration in Business
(% of companies with broadband access)
ICT Infrastructures in Spanish
Businesses
100
90
Computer
80
100
70
Internet
80
Local Area Network
60
60
40
20
50
0
E-Mail
40
Wireless LAN
30
20
Other Technologies
Broadband
10
Mobile Phones
EU-27
PT
IT
NL
BG
GE
SE
FN
UK
FR
MT
ES
0
Total
Source: Eurostat – Community Survey on ICT usage in enterprises, 2011 (Data 2010)
10 to 49
50 to 249
250 or more
Source: ONTSI, based on INE 2011
43
43
4. Business climate: Infrastructure & Technology
Broadband: European Comparison
25.000.000
100%
22.500.000
90%
17.500.000
Broadband Lines
80%
Broadband Lines and Penetration Rate in
the EU27, lines/100 inhabitants
70%
15.000.000
60%
12.500.000
50%
10.000.000
37%
7.500.000
31%
28%
28% 28% 28%
25%
24%
21%
18%
5.000.000
40%
36%
31%
29%
18%
17%
21%
20%
20% 19%
17% 17%
16%
13%
11%
Lines/100 inhabitants
20.000.000
30%
20%
13%
2.500.000
10%
0
0%
MT
CY
LU
EE
LV
SI
SK
LT
IE
Source: XIV Implementation Report, European Commission, 2010
EL
HU
FI
CZ
PT
AT
DK
BE
SE
PL
NL
ES
IT
FR
UK
DE
44
44
4. Business climate
o
Incentives and taxes
45
4. Business climate: Incentives & taxes
Main incentives for productive investment
European Union Incentives Scheme for Large Companies in Spain
Grants from Ministry of Finance and Public Administration
Additional Increase in Incentives from 10
to 20% for SMEs
There are other regional and local incentives available in all Autonomous Communities
46
46
4. Business climate: Incentives & taxes
Spain has got many Institutions that promote incentives in different calls along the year
R&D:
• The Centre for Industrial Technological Development (CDTI) has got a wide range of grants and loans at
competitive low interest rate for technological projects.
• The State Secretariat for Innovation in the Ministry of Economy and Competitiveness (MINECO) also offers
support with grants and loans for technological projects developed by companies and public bodies
• INVEST IN SPAIN/ICEX has developed a programme for supporting foreign companies up to €200,000 for
investments with a high degree of R&D in competitive tenders
• The National Innovation Company (ENISA) finances SMEs up to €1.5 million with participative loans at a
very competitive interest rate and where no-guarantee is required.
• The Public organization RED.ES promotes the IT activities of technological companies and start-ups financing
investments in infrastructures, equipments and so on.
Investments:
• The Official Credit Institute (ICO) supports the creation/investment carried out by companies and
entrepreneurs with loans/ leasing at a low rate
• The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and
Competitiveness (MINECO) support investments in equipment and infrastructures with grants and loans for
large and SMEs companies
• The Institute for Energy Diversification and Saving (IDAE) participates directly in projects with loans at a
low interest rate
Human Resources:
•The Ministry of Industry, Energy and Tourism (MINETUR) and The Ministry of Economy and
Competitiveness (MINECO) support investments in human resources, training and hiring personnel with grants
47
and loans
4. Business climate: Incentives & taxes
Taxes: fiscal incentives for R&D
1. Favorable fiscal system for foreign investors and R+D activities: The 2nd most
favorable fiscal incentives for R&D among OECD countries.
Large firms
SMEs
0,5
0,4
0,3
0,2
0,1
0,0
-0,1
Note: Tax subsidies are calculated as 1 minus the B index. For example, in Spain, 1 unit of R&D expenditure by large firms results in 0.349 unit of tax relief.
Source: “Science, Technology and Industry, Outlook”. OCDE, 2012.
2. In addition, the Spanish CIT law introduced a patent box type of incentive. Under this
regime 60% of net income arising from the letting of the right to use certain qualifying
intellectual property (IP) rights are tax-exempt.
48
4. Business climate: Incentives & taxes
Incentives for hiring people
Permanent Contract Incentives: Reduction in the employer's social security
contribution
Company Size
Monthly Amount (€)
Term
All
Exemption for common contingences: 500€
2 years
All
300 €
6 months
New contract (up to 31/08/2016)
National Youth Guarantee System
New contract
Employee<30 years
Training activities
Training Contracts Incentives: Reduction in the employer's social security
contribution
Company Size
Annual Amount (€)
Term
Less than 250
100%
Throughout
employees
the term of the
More than 250
75%
contract
employees
All
Depends on the type of the training: Maximum: 4,160€
3 years
Conversion of Training, Apprenticeships
Contracts into Permanent Contracts
All
1,800 € yearly for women
1,500 € yearly for men
3 years
Partial-Time contracts linked with training
activities
Less than 250
employees
More than 250
employees
Research staff
"First young job" contract
Employee<30 years
Apprenticeship contracts for first jobs
Employee<30 years
Companies with less than 50 workers
hiring unemployed
16>Employee<30
Employee>45 years
100% for common contigences
75% for common contigences
1 year + 1
year plus
Hiring Incentives:Reduction in the employer's social security contribution
Company Size
Annual Amount (€)
Term
Throughout
All
40% for common contingences
the term of the
contract
700 €/yearly for women
500
All
3 years
€/yearly for men
100% for common contingences when the companies Throughout
All
hire beneficiaries of the National Youth Guarantee
the term of the
System
contract
Less than 50
employees
Average of 1,200 €
3 years
Average of 1,400 €
Companies with up to 9 workers hiring
unemployed
Employee<30 yearsUp to 9 employees
100% for common contigences
1 year
Source: ICEX-Invest
Spain and Ministry
of Employmentand
and Social
Security
Source:inMinistry
of Employment
Social
Security
49
4. Business climate: Incentives & taxes
Taxes: Moderate tax burden
The comparative analysis shows that Spain is a country with relatively moderate
ratio between Tax Revenues (Including Social Security Contributions ) and GDP
(32.5% GDP)
Countries UE. Tax Revenues (Including Social Security Contributions ) as a percentage of GDP
60,0
50,0
40,0
30,0
20,0
10,0
0,0
Source: Eurostat 2012
50
4. Business climate: Incentives & taxes
Taxes: moderate tax burden
1. A favourable tax rate on corporate income (28% for tax year 2015, and to 25% in 2016).
2. Reduced corporate tax rate (15%) for companies established on or after January 1,
2013. The reduced rate will be applicable for the first two years that the company is
generating profit.
3. An attractive allowance and deduction system in corporate tax (20.1% effective rate).
4. Participation Exemption system: dividends or profit participations from business
activities carried on abroad through subsidiaries or branches and the gains obtained
from the transfer of these securities are tax exempt in Spain if the Spanish company
holds a participation of at least 5% in the non resident company.
5. Favourable tax incentive for foreign workers: fixed rate of 24% (up to maximum of
600,000 €).
6. Spain has tax treaties with 88 countries. Under these treaties, residents in foreign
countries are taxed at a reduced rate, or are exempt from Spanish taxes on certain
items of income they receive from sources within Spain. These reduced rates and
exemptions vary among countries and specific items of income.
Source: Paying taxes 2013 (PwC & World Bank)
51
4. Business climate: Incentives & taxes
Taxes: ETVEs
1. Foreign Securities Holding Companies (in Spanish, ETVE) is a Special Tax Regime
applicable to Holding companies.
a) No taxation on paid-in dividends.
b) No taxation on paid-in capital gains.
c) No taxation on paid-out dividends/gains.
d) Stable and reliable regime.
e) Wide tax treaty network (88 treaties to avoid double taxation).
2. The attractiveness of ETVEs goes beyond the pure Tax Holding Regime. The ETVE
regime is an opportunity for international investors to channel their outbound
investments (in Europe, LATAM and other countries) through Spanish HoldCos.
Main Investors in Spanish ETVEs
40.000.000,00
35.000.000,00
30.000.000,00
25.000.000,00
20.000.000,00
15.000.000,00
10.000.000,00
5.000.000,00
0,00
52
4. Business climate
o
o
Human capital: Productivity, Skilled
Labour Force and Competitive Costs.
Decreasing Unit Labour Costs.
53
4. Business climate: Human Capital:
productivity and skilled labour cost
Labour Costs
Labour costs in Spain are below the EU-27 average
Cost per hour Private Sector 2013
€/hour
50
45 43.0
40
35
30
41.2
39.8
35.635.0
32.531.731.7
31.3
28.027.6
23.7
25
21.1 20.9
20
15.9
15
10
5
14.314.1
12.611.5
10.4
9.3 8.8
7.8 7.4
6.5 6.2
4.7 3.7
0
Source: Destatis 2014 (Federal Statistical Office Germany)
54
4. Business climate: Human Capital:
productivity and skilled labour cost
Labour Costs
Unit Labour Costs more competitive than main European economies
UNIT LABOUR COST EVOLUTION, 2010-2014
Index, 2010=100
110
105
100
Germany
Spain
France
95
Italy
United Kingdom
90
85
2010
2011
2012
2013
2014
Source: Eurostat. April 2015
55
4. Business climate: Human Capital:
productivity and skilled labour cost
Compensation of employees
Spain has the lower employee compensation in comparison with main European economies
EMPLOYEE COMPENSATION
Millions € (current prices)
1.600.000
1.400.000
Germany
1.200.000
Spain
France
1.000.000
Italy
800.000
United Kingdom
600.000
400.000
200.000
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Eurostat. April 2015. Data: Millions € (at current prices).
Compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an employee
in return for work done by the latter. In particular, it also i
56
4. Business climate: Human Capital:
productivity and skilled labour cost
Salaries and wages in Spain
Average salaries by department for different sectors
2013
Thousand €
100
90
80
70
60
50
40
30
20
10
0
Executive Director/National/Chief
Division Director
Manager/Head of Department
Officer/Programmer/Technician
Source: Infoempleo and Adecco Report 2013: Job offers and demands in Spain
Note: Gross Salary
57
4. Business climate: Human Capital:
productivity and skilled labour cost
Labour Productivity
Spanish Labour Productivity is better than EU-28 Labour Productivity
REAL LABOUR PRODUCTIVITY PER PERSON EMPLOYED
% change on previous period
4,0
3,0
2,0
EU 28
1,0
Spain
0,0
-1,0
-2,0
-3,0
-4,0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Source: Eurostat. April 2015. Data: % change on previous period
58
4. Business climate: Human Capital:
productivity and skilled labour cost
Social Security Costs
Employer contribution rate: : From 18.9% to 23.2% in case of permanent contract during
2 years.
Incentives for certain hiring and training contracts applied to reduce employer Social
Security Contributions.
Group 1 Employer S. Security Contribution
Contribution to S. Security
for permanent contract during 2 years
400 €
350.08 €
300 €
18.9%-23.2%
176.76 €
200 €
100 €
<1,056.90 €
1,056.91 €
3,605.99 €
>3,606 €
Monthly Salary
If the monthly salary is higher than the maximum contribution base, the Social Security
rate applies to this maximum contribution base, where the effective rate is lower.
Source: Ministry of Employment and Social Security
59
4. Business climate: Human Capital:
productivity and skilled labour cost
Employer’s Social Security contributions before and after Royal Legislative Decree 3/2014
If a company hires a worker with a salary of 20,000€, after RD 1/2015, the total employer
contribution to Social Security is 4,764€ per year. That means a reduction of 23% in
comparison with the same employment contract before RD 1/2015 (6,180€).
Total Employers' Contribution to Social Security
Total Employers' Contribution to Social Security with 500€
Exemption
Group 1
Salary
General Contingencies
Unemployment
Accidents
Group 1
Annual (€)
Monthly (€)
20,000.00
1,666.67
4,720.00
1,100.00
200.00
Annual (€)
Monthly (€)
Salary
20,000.00
1,166.67
393.33
General Contingencies
3,304.00
275.33
91.67
Unemployment
1,100.00
91.67
16.67
Accidents
200.00
16.67
40.00
3.33
120.00
10.00
4,764.00
24,764.00
397.00
2,063.67
Salary Guarantee Fund
40.00
3.33
Salary Guarantee Fund
Professional Training
120.00
10.00
Professional Training
6,180.00
26,180.00
515.00
2,181.67
Total Employer's
Contribution to S.S.
Total Cost
%
Source: Ministry of Employment and Social Security
23.61
Total Employer's Contribution
to S.S.
Total Cost
%
19.24
Source: Ministry of Employment and Social Security
60
4. Business climate: Human Capital:
productivity and skilled labour cost
Business Schools
3 Spanish Business Schools are in Top-10 in the 2014 Financial Times ranking of
European business schools
European Business School ranking 2014
3 year average
rank
2014 Ranking
School name
Country
1
2
London Business School
UK
2
2
HEC Paris
France
3
2
IE Business School
Spain
4
4
Esade Business School
Spain
5
5
Insead
France/Singapore
6
7
University of St Gallen
Switzerland
7
6
Iese Business School
Spain
8
9
SDA Bocconi
Italy
9
8
IMD
Switzerland
10
11
University of Oxford: Saïd
UK
11
10
Rotterdam School of Management,
Erasmus University
Netherlands
12
11
ESCP Europe
France/UK/Germany/Spain/Italy
13
16
Imperial College Business School
UK
14
14
EMLyon Business School
France
15
16
Essec Business School
France
16
15
Vlerick Business School
Belgium
17
20
Edhec Business School
France
18
26
Mannheim Business School
Germany
19
18
City University: Cass
UK
19
21
Warwick Business School
UK
Source: Financial Times 2014
61
4. Business climate: Human Capital:
productivity and skilled labour cost
Business Schools
Spanish Business Schools have three MBA programs among the top 20 in the world
Global MBA ranking 2015
2015 Ranking
School name
Country
1
Harvard Business School
USA
2
London Business School
UK
3
University of Pennsylvania: Wharton
USA
4
Stanford Graduate School of Business
USA
4
Insead
France/Singapore
6
Columbia Business School
USA
7
Iese Business School
Spain
8
MIT:Sloan
USA
9
University of Chicago: Booth
USA
10
University of California at Berkeley: Haas
USA
11
Ceibs
China
12
IE Business School
Spain
13
University of Cambridge: Judge
UK
14
Hong Kong UST Business School
China
14
Northwesterm University: Kellog
USA
16
HEC Paris
France
17
Yale School of Management
USA
18
New York University: Stern
USA
19
Esade Business School
Spain
20
IMD
Switzerland
Source: Financial Times 2015
62
4. Business climate: Human Capital:
productivity and skilled labour cost
Highly skilled labour force
Spain ranks 4th in Europe in number of persons with a scientific/technical tertiary
education, just behind Germany, United Kingdom and France
Human Resources in Science & Technology with tertiary
education, 2012
20.000
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
Source: Eurostat. November 2013. Data: Thousands
63
4. Business climate
o
Immigration
64
4. Business climate: Immigration
International mobility - New legal framework
It is based on an agile and specialized system for visa and authorization concessions.
VISA AND AUTHORIZATION
CONCESSIONS FOR
Investors
Entrepreneurs
Highly qualified professionals
Real Estate
500.000 €
Spanish
Companies
1 mill. €
Bank Deposit
1 mill. €
Public Debt
2 mill. €
Scientists and researchers
Intra-corporate transferred employees
GENERAL REQUIREMENTS
THE PROCEDURES
Not being in an illegal situation in Spain
10 days for visas and 20 days for authorizations
Being 18 years old or older
A single authorization for living and working in Spain
Not having criminal records
Valid for the whole of Spain
Public or private health insurance in Spain
Enough economic resources.
The family will be able to apply at the same time
Benefits of the Schengen visa: freedom of movement
within the member states
Freedom to live in Spain: Granted residence and work permits authorization
Source: http://prie.comercio.es/en/pages/programa-de-residencia-para-inversores-y-emprendedores-(prie).aspx
65
4. Business climate
o
Quality of life: Expat setting up
66
4. Business climate: Quality of life
Foreign Schools
There are currently 180 international schools in Spain, including 116 English spoken
Schools, 24 French Schools and 19 German Schools, among others
Foreign Schools 2014
120
100
100
80
60
40
24
20
19
16
5
5
4
2
1
1
1
1
1
0
Source: Ministry of Education, Culture and Sports, 2014
67
4. Business climate: Quality of life
 Spain is the 1st country in Europe in terms of quality of life for ex-pats and
3rd-ranked worldwide
 With large communities of many different nationalities, Spain is known for its highly
cosmopolitan character. On average, 12.2% of the Spanish residents are foreignborn, a figure that rises to 16-17% in regions like Madrid or Catalonia
 One of the largest number of International Schools in Europe
 Outstanding & modern health system with very high standards
 Favourable fiscal regime for expatriates
 Law enforcement: Assurance & stability in business and social life
 Excellent climate, first-class gastronomy, wide range of cultural and leisure
activities
68
4. Business climate: Quality of life
Expat Experience. League table of selected OECD countries
Country
Overall Experience
Overall quality of life
Overall integration
Overall setting up
Spain
1
1
1
4
Switzerland
2
2
11
9
Germany
3
3
5
7
Australia
4
7
4
1
France
5
5
3
8
Canada
6
9
7
2
New Zealand
7
8
13
3
Belgium
8
6
9
10
United Kingdom
9
12
2
5
Netherlands
10
4
12
12
USA
11
11
8
6
Italy
12
10
6
11
Japan
13
13
10
13
Source: Own elaboration based on The Expat Explorer Survey 2012.(HSBC)
69
5. Business opportunities
 Automotive
 ICT (Information and Communication Technologies)
 Biotechnology, Pharmacy and Life Sciences
 Aerospace
 Logistics and Transport
 Environment and Water Treatment
 Chemical Industry
 Nanotechnology
 Agro-food
 Real Estate
 Tourism and leisure
 Natural resources
 Textile &Retail
70
5. Business opportunities: Automotive
Investing in Automotive
71
5. Business opportunities: Automotive
Why Spain for Automotive?

SPAIN is a key Player in the European Car Industry.

2nd manufacturer in the EU.

Productive and flexible manufacturing plants.

High Future Investment committed by Main Car manufacturers.

Powerful industrial supply chain and Auto Parts Industry.

Availability of highly qualified human resources.

High public and private investment in Professional Training.

Leadership in European Industrial Innovation-Mobility Sector.

Privileged Export Platform towards EU, Latin America, North Africa.

Open Country for Foreign Investment.

Public Support for Business Development.
72
5. Business opportunities: Automotive
Key figures: Automotive Industry in Spain
 Spain is the 2nd-largest car manufacturer in Europe and 11th in the world.
 Spain is the 1st manufacturer of Industrial Vehicles in Europe *
 Most of the world's biggest car manufacturers are present in Spain with 17
automobile production plants.
 Nine out of ten vehicles Made in Spain are exported to over 130 countries
 Spain Automotive Parts Industry ranks 6th in the world in terms of turnover.
* Including light commercial vehicles
73
5. Business opportunities: Automotive
Key figures: Automotive Industry in Spain
 Vehicle manufacturing in Spain was up 9.3% in 2013 reaching 2,163,338 units
 Automotive Industry turnover accounts for 10% of Spain’s GDP.
 300,000 people directly employed in the Industry.
 2,000,000 jobs linked to the Sector.
 1.9 Million vehicles exported to 130 Countries in 2013 Export value €25bn.
 Vehicle exports increased by 8.7% in 2013 to 1,879,974 units.
 Automotive Industry Main exporter with 17% of total Goods Exports.
 3-4 Million vehicles transported every year through the territory.
 34 Technology Centres devoted to Automotive Industry.
 R&D: invest 11% of turnover
 €63 Million Annual average Investment in Professional Training by Car Manufacturers.
 Lower Unit Labor costs than EU average in the Industry.
Sources: ANFAC (Spanish Association of Vehicle Manufacturers) · SERNAUTO (Automotive Parts Exporters Association )
Latest available figures
74
5. Business opportunities: Automotive
Key figures: Foreign Direct Investment
 New Industrial Plans have been approved by the 9 Multinational brands established
in the country.
 €5 billion investment in progress to expand production in Spanish Plants, including
new models and electric models
 Plan of the Spanish Industry to produce 1 Million extra vehicles “3 Million Plan”.
Sources: ICEX-Invest in Spain · Real Instituto Elcano · Ministry of Economy and Competitiveness (dataInvex)
75
5. Business opportunities: Automotive
Automotive Industry in Spain: AUTO-PARTS
 Spanish Auto-Parts Industry ranks 6th in the world in terms of Turnover.
 Main global suppliers of the Automotive Industry established in Spain.
 1000 companies belonging to 720 groups provide customized Service to Car Manufacturers
 191,000 people directly employed in the Sector
 Turnover of €27.5 bn in 2012, 65% exported to 150 countries.
 EU, USA, Mexico, North Africa and BRICs top ranking destinations of Spanish Exports.
Source: SERNAUTO (Spanish Association of Automotive Parts and Accessories Manufacturers). Last available figures: 2012.
76
5. Business opportunities: Automotive
Eco-Electromobility: Spanish Capabilities and Leadership
 Spain contributes to Eco-Electromobility as a major
component designer and manufacturer and as provider of
Infrastructures and Network Intelligence.
 74 Spanish Companies and Technology Centres have
taken part in 60% of the European eco-electromobility
Projects.

Spanish Companies are leaders of 13 of said projects, including the 3 European projects on new
batteries: NECOBAUT, SOMABAT, GREEN LION.

The Spanish Technology Platform Move to Future ww.move2future.es brings together 142 Key
innovative Companies, Research and Technology Centres.


Spanish Scientific, Technological and Industrial capabilities on future transport are well
summarized in the document New Opportunities for the Clean Vehicle Sector in
Spain.
100 Eco-electromobility projects with Spanish Participation and 80 New Products/Services compiled for
Green Car Initiatives.
77
5. Business opportunities: Automotive
Eco-Electromobility: Spanish Capabilities and Leadership

RENAULT, MERCEDES -BENZ, PEUGEOT- CITROËN, NISSAN are already manufacturing full
electric powered and hybrid vehicles in Spain.
 i2e Full Electric Bus of IRIZAR already in the Market.

AUTO-PARTS companies with plants in Spain are already providing specific components and
systems for electric and hybrid vehicles.
78
5. Business opportunities: Automotive
Success stories
News/Investment Projects
 RENAULT
November 2012 Renault approves the Industrial Plan 2012-2014 for the Manufacturing
Plants of Palencia (Megane), Seville and Valladolid (Captur and Twizzy models). 100
new jobs will be created in Seville's Transmissions Plant.
 IVECO- (Fiat Group)
Industrial Plan up to 2016 for the manufacturing centres of Madrid and Valladolid (Heavy
Vehicles). Investment of €0.5 billion and creation of 1200 jobs throughout this period.
 FORD
US-based automotive giant Ford will expand its manufacturing complex in Almussafes,
Spain. The company will build a new 80,000 m2 plant at the site to produce its own
automotive parts and increase the production of Ford Kuga by 10%. €1.1 billion
investment has been committed through the period 2009-2013.
 MERCEDES
In 2013, the company will Invest up to €200 Million to adapt Vitoria Plant Facilities for the
new VITO VS20 and its Electric Version. The Industrial Plan secures jobs at the plant.
Sources: fDi Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).
79
5. Business opportunities: Automotive
 PSA Peugeot-Citroën
It is to create 1000 new jobs in 2013 in the Manufacturing Facilities of Vigo for the
Production of Citroën C-Elysee, Electric Versions of Peugeot Partner and Citroën
Berlingo and New C4 Picasso.

NISSAN
In 2014, announces €130 Million Investment in Barcelona’s Plant to produce a new
Sedan starting 2014, and investments of €10 Million in its components manufacturing
plant of Cantabria.
 GM
Includes Spanish Plant of Figueruelas in its Industrial Plan for Europe that will drive
and investment of up to 4 Billion in 23 new OPEL models in Europe for the period 20132016.
 SEAT (VW Group)
The group VOLKSWAGEN invested €665 Million in the SEAT Plant of Martorell in 2012,
including €100 Million in R&D and €13 Million in Professional Training. Martorell is one
of the Group’s most productive and flexible plants, with 377.000 units in 2012 including
the New Audi Q3. In 2013, the Plant will market the new SEAT Leon models.
Sources: fDI Markets · Corporative Sources · ANFAC (Spanish Association of Car & Truck manufacturers).
80
80
5. Business opportunities: Automotive
Automotive Industry in Spain: AUTO–PARTS. New Investment Projects
New Investment announcements by Auto-Parts Multinationals in 2013
 FAURECIA
The French multinational of Auto-Parts has chosen Valencia to set up its fifth R&D Centre
in Spain. It will be located in the Technology Park of Paterna and is to employ 200
Technicians.
 MAHINDRA
The Indian giant, leading manufacturer of Components in Asia, buys a 13.5% share of the
Spanish company CIE Automotive for €96,24Million sealing a worldwide strategic alliance.
 SAMVADARDHANA MOTHERSON PEGUFORM
It has announced plans to invest €5M as a part of its €30M expansion Plan to expand
production capacity in its manufacturing facility in Ripollet (Spain) to increase production of
sintered auto-parts at the site. The entire investment will create about 100 jobs.
 MAFLOW SPAIN AUTOMOTIVE
The Auto Parts company owned by the Polish Industrial Corporation Boryszew invested
€2Million in 2013 to expand production at its Plant of Guarnizo (Cantabria-Spain).
MAFLOW is one of the larger manufacturers of Air Conditioning tubes worldwide. Guarnizo’s
Plant is its only manufacturing Centre in Spain with 100 employees.
Source : SERNAUTO (Spanish Association of Auto-Parts Exporters)
81
5. Business opportunities: ICT
Investing in ICT
(Information & Communication Technologies)
82
5. Business opportunities: ICT
Spain is a leader in advanced technologies:

Spanish landing software is renowned and used worldwide

Major events/Complex, distributed international delivery

Hi-Tech and Defence Industry

Telecommunications, Utilities, Energy, Banking…
Mobile World Congress in Barcelona World’s Mobile Capital
Nearshoring value added location worldwide (BPO & IT)
Spanish companies are present and recognized in major international markets:
83
5. Business opportunities: ICT
Information and Communication Technologies Industry in Spain

Spain is the fifth ICT market by volume in Europe: € 91,970 Million.

The gross value-added at market prices represents almost the 5.2% of GDP in 2012.

There are nearly 25,000 ICT companies, including digital content, operating in Spain. The sector is
currently[1] employing almost 400,000 workers.

Innovation investment (R&D&I) in the ICT sector has almost doubled over the last five years. It
accounts for 40% of the total amount invested by the private sector in Spain.
Spain ICT Sector Turnover 2012 (€ million)
Production
10.3%
Digital
Content
Telecommunications
3.1%
Commerce
9.5%
€ 91.97 Billion
30.9%
46.2%
Information
Technologies
Source [1] : ONTSI (Spanish Observatory for the Telecommunications and Information Society) 2014 (Data 2012)
84
5. Business opportunities: ICT
Leading ICT multinationals are already successfully located in
Spain, taking advantage of Spain’s benefits:
Software Vendors
Telecom equipment vendors
Hardware Vendors
Service Providers
ICT Services and Consulting Companies
85
5. Business opportunities: ICT
Success stories
 IBM was set up in Spain in 1926. Today, the Spanish subsidiaries have 7200 employees.
 IBM Spain coordinates the activities of IBM in Portugal, Greece and Israel.
 Projects developed in Spain:
• Centre of excellence in Barcelona to develop solutions for financial entities and the
health sector.
• INSA, an IBM branch, has set up two centres (Caceres and Salamanca) for software
developments to be applied worldwide.
• MareNostrum, supercomputer installed in the Barcelona Supercomputing Centre in
collaboration with the University of Catalonia.
• Technology Expert Council (TEC), which integrates IBM’s best talents in Spain to
enhance the leadership of the company and develop its technical knowledge.
 In the beginning, HP was set up in Spain as a manufacture centre.
 Nowadays, it has changed its strategy and has set up worldwide recognized support and
R&D centres.
86
5. Business opportunities: ICT
Success stories






According to Walter Ji, CEO of Huawei for Spain and Portugal,
Huawei has contributed to the transformation of Telefónica
through its IT solutions and the evolution of their network
infrastructure equipment, reaching an extensive footprint
across the Group
At the same time, Huawei has completely transformed the
portfolio of devices for the customer in the countries where
Telefónica is present, especially mobile devices, where 2 out of
3 units already sold by Huawei are smartphones
In addition, the Huawei vertical cloud solutions for different
industries have worked strategically in the process of
transforming the B2B business of Telefónica.
Telefónica, Mozilla and ZTE launched the world’s first
commercial Firefox OS with the ZTE Open available at
Movistar stores from last July.
The ZTE Open offers customers a smartphone experience
at an incredible price point.
Firefox OS devices will also be launched by Telefónica in
other markets, including Colombia and Venezuela.
87
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Investing in Biotechnology,
Pharmacy and Life Sciences
88
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
 Solid Basic Science: Good scientific
output. Spain is 10th world scientific power
and 5th by scientific production in the EU15.
 Integrated Healthcare System: Spain has an extensive network of
university hospitals, both public and private, backed by leading-edge
research centres. The system is ideal for translational medicine and
discovering new drugs and advanced therapies.
 Emerging Biotech Industry: biotech companies are growing faster here than in other
countries. Spain is providing strong support for the surge in biotechnology and its lateral
application to other sectors.
 Excellent infrastructure for innovation: exponential growth of science and technology
parks, research centres and institutes of technology. Spain’s infrastructure also
incorporates the latest technology for life science projects.
 Highly qualified workforce: in some areas of Spain the percentage of workers with
post-graduate studies is higher than the European average. There is a surplus of talent
for competitive and innovative projects.
89
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Biotechnology
in Spain
 Solid macroeconomic impact
 Directly and indirectly, the sector accounted for 7.8% of Spain’s GDP
in 2012 (data close to traditional sectors as tourism and automotive)
 Consolidation of Spanish biotech sector
 Growing number of biocompanies and dynamic creation of highly qualified jobs
 More than 3000 companies involved in biotech activities and 625 strictly biotech
 203,000 employees (+0.36%) and 9000 R+D activities dedicated (+2.14%).
 Breakdown of biocompanies by activity
 Of all strictly biotech companies 53% focus on healthcare and 32% on agro-food.
 68% of industrial companies related to biotechnology focus on agro-food and 20% on healthcare
 Strong SPIN-OUTs culture
 Every year public institutions create between 10 and 14 new companies.
Source: ASEBIO 2013 Report
90
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Distribution of biotechnology companies and
biotech users by region
 After Madrid and Catalonia, Andalusia is the
autonomous region with the highest number of
strictly biotech companies.
 Most biotech companies are located in Catalonia
(21.76%), Andalusia (16.15%), Madrid (15.91%)
and Basque Country (10.91%). Together they
accounted for nearly the 50% of the national total in
2012.
Source: ASEBIO 2013 Report
91
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Pharmaceutical Sector: overview
 There are about 425 pharma companies in Spain, including some with no production and/or marketing
activity. Near to 60% are foreign companies.
 Leading pharmaceutical/biotech multinationals are already located in Spain many of which have
successfully chosen our country for the establishment of Research Excellence Centres, Production or
Distribution Centres.
Distribution by region
These companies are mainly
located in Catalonia and the
Madrid autonomous region,
which both have long-standing
pharma traditions.
Important companies can also
be found in other regions such
as Navarre, Andalusia and
Galicia.
Source: FarmaIndustria Annual Report 2012 · PMFARMA website
92
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Pharmaceutical Sector: R&D spending and workforce
The pharmaceutical industry is leader in R&D spending in Spain
 Pharmaceutical companies set aside near to €1000 M. for R&D.
 The sector accounts for 21% of all private R&D spending in Spain.
Outsourcing R&D
 Apart from in-house R&D, the pharma industry leads the way in outsourcing this to other
companies.
Job creation in R&D
 The pharma industry has 4537 employees working full-time on R&D.
 This is 12% of all R&D employment in Spanish industry.
 200000 total employment rate, direct and indirectly.
Biomedical researchers
 The biomedical industry created 2153 jobs for graduate employees working exclusively on
R&D.
Source: FarmaIndustria Annual Report 2013
93
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Healthcare Technology: overview
The healthcare technology market
 This sector invoiced about €6800 M.
 It comprises more than 1050 companies.
Job creation
 The healthcare technology sector employs more than 29,000 people.
Exports are growing
 The value of exports exceeded €2082 M.
 This figure represents 0.89% of total exports in Spain.
Important trade partners
 The target market is still the rest of the EU, which takes 60% of exports.
 Asia and South America are playing an increasingly important role as big importers of
Spanish technology and products.
Source: FENIN annual report 2013
94
5. Business opportunities:
Biotechnology, Pharmacy and Life Science
Success stories
Proof of concept for the global market
 Merck has concentrated its global growth-hormone production in Spain and has recently
announced a €14M investment to increase by 50% the production capacity of its facility in Madrid.
 Novartis announced in 2013 a €60M investment to expands its facilities in Catalonia for the
manufacturing of the entire production line of inhalers. The expansion will create 70 jobs.
 Lilly has in Madrid its research centre for medicinal chemistry, one of the biggest in the world
investing €20M and is planning an increase in its production and R+D activities.
 Bayer has concentrated its global aspirin production in Asturias investing 6M€.
 Celgene opened its first research centre outside the United States in Seville. The Celgene
Institute of Translational Research Europe (CITRE) plans to focus on advanced therapies and
regenerative medicine investing €60M.
 Genzyme has set up a sales office in Madrid and has a warehouse for domestic distribution.
 GSK has in Madrid its research centre for tropical diseases, Molecular Discovery Research and
Drug Discovery activities. It plans to invest €20M in the next 4 years in their production center in
Castilla y Leon.
 TEVA manufactures in Spain all the “Omeprazol” that exports to Europe. In the last 5 years it has
invested €33M in its factory in Zaragoza.
Source: press articles
95
5. Business opportunities: Aerospace
Investing in Aerospace
96
5. Business opportunities: Aerospace
Aerospace Industry in Spain
 The Spanish Aerospace Industry is 5th in Europe in terms of turnover (€13.8 billion in
year 2013) and employment (more than 54,000 employees).
 The Spanish space sub-sector is 5th at the European level, employs more than 3,400
people and had a turnover of €737 million in year 2013.
 Half of the commercial aircraft in the world uses Spanish technology.
R&D:
 The investment in R&D activities reached
€818.7 M in year 2013 (11% of the
industry turnover)
Government support:
 The Spanish authorities consider the
Aerospace Industry one of the Strategic
Industrial Sectors.
 Creation of several public R&D centres
focused on the aerospace industry.
97
5. Business opportunities: Aerospace
 The Spanish Aerospace industry is the 5th in Europe (and 8th in the world) in terms of turnover (€13.8 billion
in year 2013) and employment (more than 54,000 employees).
 The Spanish Aeronautics industry is a world leader in several fields: composite aero structures, low
pressure turbine engines, Air Traffic Management systems, Military Transport Aircraft, etc.
 The Spanish Space industry takes part in important contracts of high added value, in qualification of flight
equipment and ground segment, and development of satellite systems. Moreover, Spain has satellite
services operators. The Spanish Space sub-sector is 5th at European level, employs more than 3,400
people and had a turnover of €737 million in year 2013.
 Half of the commercial aircraft in the world uses Spanish technology.
 R&D: invests 11% of turnover in R&D (€818.7 M in year
2012)
 Highly qualified human resources: 47% of the
aeronautics employees are University graduates or
engineers and so are 65% of employees in the Spanish
space industry.
 Government support: The Spanish authorities consider
the aerospace sector to be strategic so it offers several
grants and incentives lines.
 Creation of several public R&D centres focused on the
aerospace industry.
98
5. Business opportunities: Aerospace
Spain has significant Aeronautics Clusters: they provide new entering
companies with infrastructures, research centers, technology parks
offering interesting synergies.
99
5. Business opportunities: Aerospace
Success stories
BOEING has developed important R&D Centres in Spain:
•First Boeing R&D centre outside the USA
•Main areas: safety, ATM and environmental technologies
•April 2008: first flight of an aeroplane powered by hydrogen fuel cells – Ocaña
(Madrid)
According to Boeing:
“The reason for choosing Spain was the country’s outstanding role in the EU and
as a reference point with the Latin American countries.
It also shows the relevant position the Spanish Aerospace industry has acquired in
the last few years and the country’s capabilities in environmental and ATM
technologies”
Source: www.boeing.es
100
5. Business opportunities: Aerospace
Success stories
The Consortium EADS-AIRBUS has a very significant presence in Spain
A380 – Double-deck, wide-body, fourengine jet airliner. It is the world’s largest
passenger airliner.
It began commercial service in October
2007 with Singapore Airlines.
Spain has a participation share of 8%.
Civil
aircraft
A350XWB
Last Airbus civil aircraft model: from 250 to 350-seater. Over 70% airframe is made from
advanced materials: composite structures, titanium and advanced aluminum alloys.
The two first test flights have already been developed.
Spain has a 11% share of the program.
HMC (Harbin Hafei Airbus Composite Manufacturing Center is a joint venture between
Airbus (20%) and its Chinese partners (mainly Harbin Aircraft Industry Group, 50%).
HMC manufactures elevators that are being delivered to Spanish company Aernnova
(the first ship set was delivered last September 2013).
Aernnova will later on deliver those elevators to the Airbus plant in Getafe (Madrid,
Spain).
101
5. Business opportunities: Aerospace
Success stories
The Consortium EADS-AIRBUS has a very significant presence in Spain
A400M – Military transport aircraft
Spain has a 15% of participation share, including:
-Final Assembly Line
-Simulation and training Center
- Services Logistics Hub
All of them located in Seville (Spain)
The first A400M aircraft have already been
delivered to customer (France) in September 2013.
Military
aircraft
A330 MRTT – Multi Role Tanker Transport
Refueling aircraft, entirely developed by
Spanish industry, including a refueling pole
with electric controls.
Eurofighter Typhoon– Multi Role Fighter
14% share of participation by the Spanish
industry. Major components developed in
Spain:
-Right wing
-Leading edge slats.
Eurocopter– Military helicopter
Plant located in Albacete (Spain):
-Final Assembly Line
-Delivery Center
For models: NH-90, TIGER and EC-35
102
5. Business opportunities:
Logistics and Transport
Investing in Logistics and Transport
103
5. Business opportunities:
Logistics and Transport
Logistics and Transport Industries in Spain
 Spanish Logistics Sector ranks among the top-20 in the world according to
the latest Logistics Performance Index of the World Bank (11th among EU
countries)
Turnover 2012
 Turnover €98.0 Billion
• Logistics
• Road, Railway, Sea and Air Freight
• Growth rate of 7% in the last 3 years
• Almost 4% of the Spanish GDP
44,2%
8,7%
Road & Rail Freight
 Employment > 861,000 workers
• 4.2 % of active workers in Spain
• 90.8% occupancy rate
45,3%
1,8%
Sea Freight
Air Freight
Warehousing and other activities related to transport
 Companies > 200,000
• Structure: High market concentration
• 90% SMEs
• 10 large enterprises manage 27% of the business
Source: National Institute of Statistics, 2014 · Logistics Performance Index (The World Bank)
104
5. Business opportunities:
Logistics and Transport
 Larger extension of kilometers of highway in
EU-27 > 14,000 km. 5.9 % Spain vs. 1.2%
EU average, 1.4% USA or 0.6% Japan.
 46 Seaports of which Valencia, Bahia de
Algeciras and Barcelona are placed among
the top ten in Europe.
 The Trans-European Transport Network
development
encloses
the
Spanish
Corridors in the Atlantic and the
Mediterranean Sea to promote Logistics.
 The Mediterranean Corridor plan connects
the Mediterranean Spanish Seaports to a
rail corridor that links North Africa to Central
Europe through Spain.
105
5. Business opportunities:
Logistics and Transport
Success stories
• DHL Spain is the key input platform across the DHL network to Latin American markets.
Invest in Spain.
• TNT International Operations Centre Madrid - Barajas (Spain) became hub for South
America in 2002. Today, shipments to and from fifteen South American countries are
handled from the Barajas Hub and to its whole network.
• Total Terminal International Algeciras (TTIA) part of the South Korean Hanjin Shipping
group builds its first container terminal semi-automatic of the Mediterranean and Southern
Europe.
106
5. Business opportunities:
Logistics and Transport
Success stories
 Hutchison Port Holdings, a subsidiary of Hong Kong conglomerate Hutchison
Whampoa, operates the new semi-automatic container terminal of the Prat quay at the
Port of Barcelona, which represents an initial investment of 300 million Euros and aims
to be the largest terminal in Southern Europe.
 Mexico's Pemex will install its European operations base at the port of A Coruña which
implies a direct investment of $70 million.
 The Danish APM Terminals Algeciras will devote €42 million investment to meet their
new triple-E ships in the port of Bahia de Algeciras.
 Toyota Motor Europe (TME) sets up a new logistics centre in Illescas for the delivery
of the brand’s spare parts and accessories in Spain.
 The German Vossloh Rail Vehicles operates one of its engineering centres, a
reflection of its commitment to innovation, in Valencia, Spain.
 One of the main actors of E-commerce in Europe, Vente Privée, opens its third
logistics platform in Spain after Germany and Italy.
107
5. Business opportunities:
Environment and Water
Investing in Environment and Water
108
5. Business opportunities:
Environment and Water
Environmental Industry in Spain
 The Spanish environmental sector accounts 3,6% GDP
 Sales: 40.355 million €
 7.780 companies employing 530.947 people directly
(estimates put employment at 1 million in 2020)
 26,4% work in Waste treatment and management.
 11% work in Water treatment.
Success stories
 Spain ranks third in the world and first in Europe for ISO 14001 Environmental Management
certificates with more than 16,500 awarded.

In 2011, the EU granted 85.8 million € to 29 Spanish projects on nature preservation, climate
change, environmental policy, clean technologies and environmental information and
communication.
Areas that require urgent attention and offer opportunities to foreign investors include Waste
Management, Air Quality and Water Treatment:



Waste generation:
Emissions:
Water consumption:
463 kg/inhabitant in 2012
6,2 tonnes of CO2 equivalent/inhabitant in 2011
112 litres/inhabitant/day in 2014
Sources: Estudio del sector económico del medio ambiente en España 2011 - MAGRAMA
EUROSTAT
109
5. Business opportunities:
Environment and Water
Environmental Industry in Spain: key players
Public entities
Private companies
GROUP
EUROPEAN
ENVIROMENTAL
AGENCY
www.eea.europa.es
•
•
Provides sound &
•
Makes proposals
and develops the
information
implementation of
32 member countries
government policy
17 REGIONAL
AUTHORITIES
Definition and
implementation of
environmental policy.
•
Regional
environmental
authorities often
called “Consejerías”
WATER
SPANISH MINISTRY OF
ENVIRONMENT AND
AGRICULTURE
www.magrama.es
independent
•
ENVIRONMENT
MUNICIPAL
AUTHORITIES
•
Subsidies,
Fines refuse
collection, street
cleaning etc.
•
Local environmental
authorities, often
called ‘Concejalías’
110
5. Business opportunities:
Environment and Water
The Water sector in Spain
• Maximum reservoir capacity (2014)
• Reserves (October 2014)
• Domestic consumption (2014)
Urban Supply
Irrigation
Uses
55,977 hm3
35,643 hm3 (63.7%)
112 liters/inhabitant/day
4.485 hm3
15.832 hm3
Urban Supply
Water
Origin
Surface (Dams, rivers…)
Underwater sources
Others (Desalination, depuration)
Irrigation
67%
29%
4%
Surface (Dams, rivers…)
76,9%
Underwater sources
21,5%
Others (Desalination, depuration) 1,6%
3.375 hm³/year of treated waste water by 2.533 WWTP
400-500 hm³/year reused by regeneration systems
Treatment
>700 towns with >2000 inhabitants with no waste water treatment plant
Sources: MAGRAMA, INE, AEAS-AGA
111
5. Business opportunities:
Environment and Water
Desalination
• Spain is the 1st producer of desalinated seawater in Europe and America
• Spanish companies are leaders in Reverse Osmosis Technologies.
• Interesting cluster:
 More than 700 desalination plants in Spain according to the Ministry of
Agriculture, Food and Environment.
 International Expertise in constructing desalination plants (Befesa, Cadagua,
Acciona…)
• R&D. Research centers actively involved in desalination:
112
5. Business opportunities: Chemical Industry
Investing in Chemical Industry
113
5. Business opportunities: Chemical Industry
Strategic Sector of the Spanish Economy.
4.5% annual growth of Chemical products demand forecasted worldwide









Main Figures of the Spanish Industry:
3,000 Companies with a turnover of 55 billion € (2013).
11% of Spanish Gross Industrial Product.
500,000 direct and induced high qualified jobs.
High Domestic Consumption of Chemicals (1,200 € /capita).
2nd largest exporter of Spanish Economy with more than 30 billion €.
Spain is Gateway to EU market and Emerging Markets (Africa).
Leader Sector in Innovation: 25% of Industrial Investment in R&D&I.
Competitive Talent: 118,600€ added value per-employee.
Sustained Growth : 54.5% growth through 2000-2013.
Source: FEIQUE:(Spanish Federation of Chemical Industries)
Evolution of Turnover in the Chemicals Sector 2000-2013 (millions €)
60.000
50.000
40.000
49.743
52.585
2007
2008
47.714
53.153
55.657
55.117
55.282
2010
2011
2012
2013
35.771
30.000
20.000
10.000
0
2000
2009
Source: INE Industrial Company Survey, Production and Price Index, and Own elaboration
114
5. Business opportunities: Chemical Industry
Spanish Industry : Sectoral Specialization (Turnover 2013 (%))
Inorganic
2,6%
Gases
2,1%
Organic
14,8%
Fertilizers
3,6%
Other Consumables
6,4%
Perfumery and Cosmetics
6,1%
Detergents and Cleaning
Products
6,1%
Paints and Dyes
6,7%
Agrochemicals
1,9%
Plastic and Rubber RM
20,5%
Fibers
0,9%
Colorants
1,4%
Pharmaceutical RM
5,5%
Pharmaceutical Specialities
21,3%
Source: FEIQUE (Spanish Federation of Chemical Industries) · INE (National Statistics Office)
115
5. Business opportunities: Chemical Industry
Investment Locations:
Productive sites and Clusters providing industrial and Logistics infrastructures.
 Mediterranean region:
. largest chemical cluster in southern
Europe and Mediterranean area:
Tarragona (ChemMed)
. Key clusters in Huelva and
Algeciras
. Chemical strategic sites in Valencia
and Murcia.
 North chemical sites:
Cantabria, Asturias, Basque Country.
 Non-coastal chemical regions:
Madrid, Aragón, Castilla y León,
Castilla-La Mancha.
116
5. Business opportunities: Chemical Industry
Infrastructures - Energy Supply and Investment Support

Guaranteed Energy Supply and Investment in Infrastructures.
 Diversified energy mix with high contribution of renewables.
 Secure National Electricity System- 102,281 MW installed power.
 Largest gas infrastructures and storage capacity in Europe.
 High Public Investment committed to boost freight transport and intermodal
infrastructures and logistics hubs.
 Agreement of the Spanish Chemical Industry with the Ministry of Public
works to develop direct connections between rail network and Production
Plants.

Vast Structure of financial
Innovation activities.
programs
for
Reindustrialization
and
117
5. Business opportunities: Chemical Industry
Foreign Investment in the Chemical Industry
According to fDi Markets, Spain ranks 2nd destination for Research & Development
projects and 5th destination for New Chemical projects (all business activities) of
Multinationals in Europe (period 2004-2014).
Country Ranking New Chemical Projects* in number of Projects
Design,
Logistics,
Destination Research &
Manufacturing Headquarters Development Distribution Others
Countries Development
& Testing
& Retail
UK
61
188
26
30
39
87
Spain
33
178
15
11
16
39
France
28
245
10
17
15
78
Germany
23
286
22
22
20
187
Ireland
21
67
9
3
25
14
Belgium
15
113
6
16
13
34
Russia
14
234
4
8
16
88
Hungary
13
111
1
17
22
Sweden
9
39
7
2
7
15
Poland
8
193
1
6
16
61
Austria
8
41
3
3
8
14
Total World
Source: fDi Markets.
Total
431
292
393
560
139
197
364
164
79
286
77
4,320
*Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).
118
5. Business opportunities: Chemical Industry
292 New Projects have been developed by 163 worldwide Multinationals with a Capital
Expenditure of 11,433.4 millions USD. (period 2004-2014)
New Chemical Projects by Parent Company, investing in Spain in four selected sectors* (millions USD)
Parent company
Bayer
BASF
Ube Industries
Dow Chemical
Novartis
DuPont
Boehringer Ingelheim
Sanofi-Aventis
Messer Group
General Electric (GE)
Michelin
Solvay
Merck & Co
Israel Chemicals (ICL)
Henkel
Les Laboratoires Servier
Hexcel
Renolit
AkzoNobel
GreenChem
Companies 21 to 163
Total
Source: fDi Markets.
Projects
11
10
10
9
8
7
6
6
5
5
5
4
4
4
4
4
4
4
4
3
175
292
Capex
144.3
365.3
498.4
722.6
665.3
380.8
118.9
163.9
110.3
1,806.3
180.8
113.8
550.4
395.0
13.3
30.9
190.5
89.1
73.6
79.5
4,740.6
11,433.4
Avg Capex Jobs Created
13.1
325
36.5
448
49.8
623
80.3
403
83.2
1,135
54.4
367
19.8
233
27.3
525
22.1
139
361.3
1,175
36.2
386
28.4
106
137.6
986
98.8
826
3.3
74
7.7
81
47.6
165
22.3
72
18.4
160
26.5
123
27.1
8,650
39.2
17,002
Avg Jobs
29
44
62
44
141
52
38
87
27
235
77
26
246
206
18
20
41
18
40
41
49
58
*Sectors included: Chemicals (105), Pharma (87), Plastics (81) and Rubber (19).
Companies
4
4
3
2
1
2
2
2
1
3
1
2
3
2
2
2
2
2
2
1
149
191
119
5. Business opportunities: Chemical Industry
Main Foreign Companies in Spain
120
5. Business opportunities: Nanotechnology
Investing in Nanotechnology
121
5. Business opportunities: Nanotechnology
Nanotechnology Initiatives and Companies in Spain

NanoSpain: Spanish Nanotechnology Network (www.nanospain.org) brings together
310 research groups, 50 companies and a research task force of around 2,500
researchers and technicians. Network coordinators: Phantoms Foundation
(www.phantomsnet.net) and CSIC (www.csic.es).

Phantoms Foundation (www.phantomsnet.net) focuses its activities on nanoscience &
nanotechnology and is a key actor in structuring and fostering European excellence and
enhancing collaborations in this field.

100 innovative companies providing a general overview of the sector in Spain
catalogue: http://www.phantomsnet.net/Resources/nanodoc.php?project=1

Spanish
N&N
Thematic
Networks:
RENAC
(Construction),
SUSCHEM
(Sustanaible Chemistry); NANOMED (Spanish Nanomedicine Platform); GENESIS (STP
Nanotechnology and Smart Systems Integretion); MATERPLAT (STP Advanced
Materials and Nanomaterials); and FOTONICA 21 ( STP Photonics).
Source: NanoSpain · Phantoms Foundation
122
5. Business opportunities: Nanotechnology
Research Groups in Nanospain Network ( Regional Distribution July 2012) 334 groups
Source: Phantoms Foundation www.phantomsnet.net
123
5. Business opportunities: Nanotechnology
Nanotechnology Initiatives/ Infrastructures
Emerging N&N in Spain
Source: Phantoms Foundation www.phantomsnet.net
124
5. Business opportunities: Nanotechnology
Nanomaterials and Graphene

In the fields of graphene research Spain occupied the 8th position in the ranking of
countries in published papers 2004-2011. (source Thomson Reuters Global Report
Material Science)

Spain is actively participating in the EU Graphene Flagship. 300 Spanish researchers
are currently working on graphene (source: CSIC - Institute of Materials Science of
Madrid)

CSIC –National Research Council stands 3rd among world wide Institutions in
Graphene research (Thomson Reuters Global Report)

Spanish emerging companies among European leaders in graphene production and
exports.
Graphenea
(www.graphenea.com),
Granph
Nanotech
(www.granphnanotech.com) or Avanzare (www.avanzare.es) are developing innovative
processes and advanced products to supply companies as Nokia, Philips, Canon,
Nissan or Sigma Aldrich.

CDTI (Center for Industrial Technological Development) and the Spanish petrochemical
multinational REPSOL have co-invested in the company Graphenea to develop high
quality graphene for international markets.

Research laboratories in Spain are developing advanced products for electronic
applications used by multinational companies like TOSHIBA.
Sources: CDTI (Centre for Industrial Technological Development · CSIC (Spanish National Research Council )
125
5. Business opportunities: Agro-food
Investing in Agro-food
126
5. Business opportunities: Agro-food
Spanish agri-food sector accounts for 86,298 million €
Basic data on the food industry
(2012 data) which represents 17% of industrial GDP
Net sales
People
(million €) employed
Sector
Meat industry
19,149
102,000
The agrifood sector’s foreign trade in 2013* had a positive
Fish processing
4,162
23,000
balance:
Fruit and vegetable processing
6,697
38,000
Manufacture of fats and oils
7,762
15,000
Dairy industry
8,933
32,000
Milling products
3,165
8,000
Animal feed products
8,900
95,000
Bread, cakes and biscuits
6,848
25,000
Sugar, chocolate and cocoa
4,410
29,000
Other products
4,557
16,000
Production of alcoholic beverages
9,364
42,000
Mineral water and soft drinks
4,726
15,000
88,673
440,000
 Food exports value rose to € 35,627 million:
• Fruit and vegetables € 14,236 million
• Fish and seafood € 2,857 million
• Meat € 4,778, million
• Drinks € 3,623, million
• Other foods € 10,133 million
 Food imports value amounted to € 27,547 million.
Mainly, Spain sold abroad its citrus, its sweet fruits, its
vegetables, its wines and its oils, but also its fish products,
processed meats and many other agrifood products.
Total
Source: Mercasa 2013. FIAB 2013 (2012 Data)
Main market for Spanish exports of agrifood products has always been Europe, but since Spain joined the
European Union (EU) that relationship has intensified significantly.
* Estimated data. DataComex
127
5. Business opportunities: Agro-food
Spain is the world's leading producer and exporter of olive oil and table olives, with
the largest acreage devoted to olive groves and the greatest number of olive trees.
World olive oil production
(Thousands Tons)
Olive oil
2011/12
2012/3*
World
3,408
2,718
EU
2,516
1,739
Spain
1,613
613
Source: Mercasa 2013
*Estimate
Spanish Wine and Grape Must
(2012)
Production 50.6 million hectolitres (2013*)
Exports
2.,62 million litres (total value: € 2,500 million)
Growth
12 % in value
*Estimate
Source: MAGRAMA. MERCASA 2013
Wine
 Spain ranks 1st in the world in wine production and has the largest surface area
of ​wine grape vineyards in the world.
 Main clients for Spanish wines are Germany, France and UK , followed by
Portugal, Russia, United States and Italy
 Spanish wines exports to China have increased by 21.7% in 2012
128
5. Business opportunities: Agro-food
Subsector
Meat
industry
Bovine
Ovine
Goat
Porcine
Poultry
Rabbit
Others
Total
Production
(th Tn)
597
122
10
3,515
1,386
63
6
5,696
 In 2012 there was an overall improvement of the livestock
and meat produced in volume and prices.
 Exports in 2013 were valued at € 4,779 million
 The Spanish catches reached the 860,220 tons
with an estimated value of 1,965 billion Euros.
 The aquaculture production reached 275,000
Fish
processing
tones with a value of € 503 million
 Exports in 2013 were valued at € 2,856 million
129
5. Business opportunities: Agro-food
 Spain is the 2nd largest fruit and vegetable producer in Europe.
 The value of Spanish fruit and vegetables amounted to 13,792
Fruit &
Vegetables
th € in 2012
 Production in Spain reaches 30 million Tn and exports in 2013
were valued at € 14,236 million €
 The main crop is the tomato
 The value generated by this sector in 2012 amounted
2,653 billion Euros.
 75% corresponds to cow's milk
 14% corresponds to sheep’s milk
Dairy
products
 14% corresponds to goat’s milk
 Exports in 2013 were valued at € 1,105 million
130
5. Business opportunities: Agro-food
Success stories
Shuanghui Group, acquired through the US company Smithfield,
the Spanish company Campofrio.
Chinese multinational company has paid 7,100 million for
Smithfield.
Campofrio, which owns brands such as Navidul, Oscar Mayer and
Revilla, is one of the largest food companies in Spain.
It has 29 production plants in six European countries and more
than 8,000 workers.
The Spanish Ministry of Agriculture, Food and Environment has signed
a cooperation agreement with China's Wahaha, to boost the marketing
of Spanish food products in major cities of China.
131
5. Business opportunities: Real Estate
Investing in Real Estate
132
5. Business opportunities: Real Estate
Professional Real Estate Investment in Spain reaches € 3,800 Millions
in 2013, what it is an increase of 112% between 2012 and 2013.
INVESTMENT VOLUMEN BY TYPE OF ASSET
2012
2013
2%
3%
20%
15%
39%
43%
3%
18%
36%
22%
Of icina
Retail
Logistica
Hotel
Otros
Retail
Source: BNP Paribas Real Estate, Research Spain.
Otros
Oficina
Hotel
Logística
133
5. Business opportunities: Real Estate
Nominal Housing Prices Adjustment by type of residence
(Year-on-year growth rates)
10
5
0
-5
-10
-15
-20
2008
2009
General
2010
2011
New dwelling
2012
2013
Second-hand dwelling
Source: National Statistics Institute (INE)
Residential Prices
9000
8000
7000
€/sqm
6000
5000
4000
3000
2000
1000
0
2009
2010
Madrid Prime Residential Prices
2011
2012
2013
Spain Residential Average Prices
Source: Ministry of Public Works and Aguirre Newman, 2014.
134
5. Business opportunities: Real Estate
National average may not be noteworthy as housing market requires regional
analysis. Nominal price adjustment of residential real estate has been very
heterogeneous between regions.
Higher discounts have taken place in the Mediterranean Coast, in some of the
Canary Islands and in Madrid´s outskirts.
Nominal Housing Price Adjustment Since Peak in Each Province (%)
Source: Ministry of Public Works, 2014.
135
5. Business opportunities: Real Estate
STILL DEMAND FOR HOLIDAY HOMES?
INCREASING FOREIGN INVESTMENT
After dropping 35% in 2009, the acquisition by residents and non residents rose
by 13% each between 2012 and 2013.
FOREIGNERS’ HOME ACQUISTIONS
80.000
12,0%
10,0%
60.000
8,0%
40.000
6,0%
4,0%
20.000
2,0%
-
0,0%
2009
2010
Foreign Residents
2011
Foreign Non Residents
2012
2013
% f oreign / total sales
Source: Ministry of Public Works, 2014.
136
5. Business opportunities: Tourism
Investing in Tourism
137
5. Business opportunities: Tourism
Spain, a Major Player in Tourism

Tourism accounts for 10.9% of GDP in Spain

Generates 11.9% of total employment (about 2 million jobs)

Covers 122.5% of the Spanish trade deficit (Bank of Spain, 2012)

Receive more than 60 million tourists (2013)
Source:
The Travel & Tourism Competitiveness Report 2013, World Economic Forum (WEF)
138
5. Business opportunities: Tourism
40.3% of our tourists have visited Spain ten or more times in their lifetimes
82% are repeat visitors

2nd country in the world in terms of UNESCO World Heritage Sites
(42 sites).

2nd country in Europe in natural areas (14 national parks, 126
nature reserves) and natural spaces declared UNESCO Biosphere
Reserves (42, behind only the United States with 47).

2nd country, behind USA, in receiving foreign golf tourists, with 431
courses and 884,848 tourists in 2011.

648 Spain Blue Flags Eco-Label Record (2013): Beaches Spain
(551), Greece (393), Turky(383), France (365) and Portugal (280).

More than 120 spa resorts in mid or high mountain locations.

More than 300 days of sunshine a year and more than 2,000 km of
Green Tracks.
139
5. Business opportunities: Tourism
Business opportunities
SMART
TOURISM
 Continued expansion and diversification
 Increasing number of destinations have
opened up to and invested in tourism
VACATION
CLUBS
CRUISES
MICE
SHOPPING
TOURISM
NATURE
TOURISM
SPORTS
TOURISM
LEISURE
TOURISM
THEMED &
LEISURE PARCS
GASTRONOMIC
TOURISM
SUN
TOURISM
CULTURAL
TOURISM
URBAN
TOURISM
HEALTH & WELLNESS
TOURISM
INTERIOR
TOURISM
RELIGIOUS
TOURISM
140
5. Business opportunities: Natural Resources
Investing in Natural Resources
141
5. Business opportunities: Natural Resources
 Spain has one of Europe´s most diversified mining sectors, which produces mostly
industrial minerals and stone.
 Spain encompasses almost 90% of the Iberian Peninsula which is considered to be the
most mineralized zone in the European Union as it includes the volcanic massive
sulfide ( VMS) deposits of the Iberian Pyrite Belt ( IPB ).
 Leading EU producer of natural sodium sulphate, slate and celestite (strontium
minerals); of the latter, Spain is the second largest producer in the world and the only
one in Europe. Spain is the world's fifth-largest producer of sand and gravel
(industrial), also fifth- largest produces of magnesite ( 3rd in Europe), sixth largest
producer of gypsum ( 3rd largest exporter), and also world´s sixth-largest producer of
fluorspar.
Source: Geological and Mining Institute of Spain ( IGME), 2012
 Mining and Mineral processing industry contributed 0.8 % of
Spain´s GDP ( Banco de España 2012).
 Direct Employment: 35,000 people in Spain. Skilled work and
well – developed infrastructure.
 Government support: Transparent legislative framework and
positive fiscal environment for the extraction of natural resources.
 Long mining tradition and past success in exploration and
mine development.
142
5. Business opportunities: Natural Resources
SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012
Commodity
ALUMINA
ALUMINUM
CEMENT
Major operating companies and
major equity owners
Aluminio/Alúmina Española S,A,
(AESA)
(Alcoa Inc,, 100%)
Alcoa Inespal S,A, (AISA) (Alcoa
Inc,, 100%)
Cementos Portland Valderribas
Location of main facilities
Alumina plant at San Ciprian, Lugo
Annual capacity
(Th. tons unless
otherwise
specified)
1,450
Electrolytic plant at San Ciprian, Lugo
250
Electrolytic plant at Aviles
93
Electrolytic plant at La Coruña
87
7 plants in Spain
15,000
3 cement factories (Montcada i Reixac, Sagunto and Villaluenga de la
Sagra), 1 cement grinding station (La Parrilla) and eight distribution points
cement also has about 40 concrete manufacturing plants, between plants
fixed and mobile; 2 central exclusive production of mortars and 6
aggregate holdings spread across the Autonomous Communities of
Asturias, Catalonia, Madrid, Valencia and Castile-La Mancha.
46,000
COAL:
ANTHRACITE Antracitas Gaiztarro SA
Antracitas del Bierzo SA
Mines near Oviedo
Mines near Leon
2,000
1,000
BITUMINOUS Hulleras del Norte SA (HUNOSA)
Various mines , Asturias
3,300
Hulleras Vasco Leonesa SA
Minas de Figaredo SA
Santa Lucia Mine, Leon
Mines near Oviedo
2,000
1,000
ENCASUR
Emma Mines , Ciudad Real
Lafarge SA (Lafarge España )
Source: Geological and Mining Institute of Spain ( IGME)
60
143
5. Business opportunities: Natural Resources
SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012
Commodity
COPPER:
METAL,
CONTENT
Major operating companies and major equity
owners
Iberian Minerals Corp
Atlantic Copper S,A,
(Freeport McMoRan Copper & Gold Inc,, 100%)
Idem
DUNITE
Location of main facilities
Minas de Aguas Teñidas at Huelva ( MATSA)
Annual capacity
(Th. tons unless
otherwise
specified)
2,200
Refinery at Huelva
270
Electrolytic refinery at Huelva
105
Industrias Reunidas de Cobre
Smelter at Asua-Bilbao
30
Elmet SL
Smelter and electrolytic refinery at Berango, Vizcaya
60
First Quantum Minerals Ltd, 100% - Inmet Mining
Corp,
Cobre Las Cruces - Open pit mines in Seville Andalucia
210
Idem
Cathode electrowinning at Las Cruces in Seville
72
Lundin Mining Corp,, 100%
Aguablanca Mine, Extremadura
7
Pasek España S,A,
Mines and plant at Landoy, A Coruña
FLUORSPAR Minerales y Productos Derivados SA (MINERSA)
1,500
Plant at Torre, Asturias
150
Underground mines at Emilio, Jaimina, and
420
Moscona, Asturias
GOLD
Orvana Minerals Corp, ( Kinbauri Gold Corp.)
El Valle- Boinas Carles mines, Asturias
MAGNESITE
Magnesitas Navarras SA
Magnesitas de Rubián SA
Mine at Eugui, plant at Zubiri
Underground and Mine at Lugo,
Source: Geological and Mining Institute of Spain ( IGME)
3,750 (kg)
600
70
144
5. Business opportunities: Natural Resources
SPAIN: STRUCTURE OF THE MINERAL INDUSTRY 2012
Commodity
Major operating companies and major
equity owners
NICKEL, METAL, CONTENT Lundin Mining Corp,, 100%
Location of main facilities
Aguablanca Mine at Badajoz near Seville
Annual capacity
(Th. tons unless
otherwise specified)
8
POTASH, ORE
Iberpotash S,A, (ICL Fertilizers Europe) Mines and plants at Suria near Barcelona
ICL Israel
1,100
SEPIOLITE
Grupo Tolsa S,A,
Mine at Madrid and Toledo and plant at Madrid
1,000
Sepiolsa ( MINERSA )
MYTA (SA de Minería y Tecnología de
Arcillas, del grupo SAMCA
Mine and plant at near Madrid
200
Mine and plant in Zaragoza and Segovia
100
Crimidesa SA
Mine and plant at Cerezo de Rio, Burgos
600
Minera de Santa Marta SA ( SANCA )
Burgos ( underground) and Toledo (open pit)
400
SODIUM SULFATE
Sociedad Anónima Sulquiza ( MINERSA) Madrid
STEEL
Aceralia Corporación Siderúrgica (Arbed
Plants at Aviles, Gijon, Sagunto, and Sestao
SA 35%)
Compañia Española de Laminacion S,L,
Plant at Barcelona
(Celsa), 100%
Corporación Gerdau Sidenor S,A,
(Sidenor) (Gerdau Group,
Plant at Basauri
100
8,000
2,600
2,500
50%, and Santander Group, 50%)
STRONTIUM
Solvay Minerales SA
TUNGSTEN
Almonty Industries
Los Santos, Salamanca
Asturiana de Zinc SA (Azsa) (Xstrata plc,
Electrolytic zinc plant at Asturias
100%)
ZINC, METAL, CONTENT
Source: Geological and Mining Institute of Spain ( IGME)
Mines and plant at Escuzar, Granada
85
125
500
145
5. Business opportunities: Natural Resources
Success stories
Canada’s First Quantum Minerals Ltd interested in Cobre
Las Cruces copper mines.
This mine is the largest open pit operation and process plant located in
Southern Spain.).The plant is designed to produce approximately 72,000
tones of copper cathode per year, shipped as final product.
ICL (Israel Chemicals Ltd) announced
In
September
2009,
the first stage of an efficiency plan for
Orvana
Iberpotash, which includes increasing
Minerals Corp of Canada( OMC )
acquired “El Valle –Boinas/Carles”
( EVBC) cooper and gold mine in northern Spain,
through its acquisition of Kinbauri Gold Corp. The
EVBC was previously mined from 1997 to 2006 by
Rio Narcea Gold Mines. They produced nearly
1,000,000 ounces of gold and over 20,000 tones of
copper prior to the closure of the mine. Production
guidance for EVBC for 2013 is, 63,000 ounces of
gold, 6,000,000 pounds of copper and 200,000
ounces of silver.
potash granulating capacity to meet increased
demand
for
granulated
potash,
as
well
as
construction of a plant at Suria to produce 1.5 Mt of
vacuum salt for the food and chemical industries.
Execution of this plan was expected to be completed
in early 2014 at a cost of about 160 million euros.
The second project, which had not yet been
approved, would expand Suria’s potash production
capacity to produce 1.1 Mt of potash, of which
630,000 t would be granulated potash and 50,000 t
would be technical potash.
146
5. Business opportunities: Textile & Clothing
Investing in Textile & Clothing
147
5. Business opportunities: Textile & Clothing
Textile and Clothing sector in figures in Spain

Spain is one of the five biggest producers in T&C industry in the EU and
accounting for about three quarters of EU production of textile and clothing.

There are more than 8,500 companies, which are a major employment
generator and provided jobs for 129,000 people in 2014, with an estimated
turnover of € 9.3bn.
Source : Fact Sheets MINETUR 2013
148
5. Business opportunities: Textile & Clothing
Spain Exports of Textile and Clothing sector
Rest of the world
0%
Oceania 0%
Rest of Europe
6%
Africa 4%
Spain Imports of Textile and Clothing sector
Asia 12%
European Union
68%
America 10%
Rest of the
world 0%
Oceania 0%
Resto Europa
8%
Africa 2%
Asia 15%
America 9%
Source : Directorate General for Customs / Icex
European
Union 66%
149
5. Business opportunities: Textile & Clothing
Spanish companies in T&C sector
The main Spanish companies and brands national in the sector are:
150
5. Business opportunities: Textile & Clothing
Foreign companies in T&C sector
Foreign companies and brands with presence in Spain are:
151
5. Business opportunities: Textile & Clothing
Success stories
 Hennes & Mauritz was set up in Spain in 2000. H & M, open the first store in
Barcelona, Glories 6th of April, followed by two additional store openings in Zaragoza
in the shopping centers of Grancasa, April 7, and Augusta, April 13. The fourth
opening was in May month in Barcelona la Maquinista. In fall 2000 was open H&M in
the center of Madrid and in Spring 2001 in Valencia.
 H & M expands its commitment to the 'e-commerce' the presence Store 'online' in
Spain in autumn 2014.
«Estamos entusiasmados con la llegada
de H&M 'online' a España este otoño, algo
que nuestros clientes estaban esperando
ansiosos, ya que es el complemento
perfecto para nuestras 150 tiendas de
España y la oportunidad de ofrecer a
nuestros clientes la mejor experiencia de
compra las 24 horas del día», ha asegurado
Doris Klein, directora general de H&M para
España y Portugal.
Source: ABC.es
152
ICEX / Invest in Spain your partner in Spain
6. ICEX-Invest in Spain
Orense 58, 3rd floor
28020 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: [email protected]
www.investinspain.org
153
Who is…
INVEST IN SPAIN is the Directorate responsible for attracting direct foreign
investment in ICEX-Spain Trade & Investment. Our president is the
Secretary of State for Trade (Ministry of Economy and Competitiveness).
Objectives & activities
 To promote, attract and maintain foreign direct investment in Spain
 Attracting new projects of foreign investment by focusing on countries,
sectors and businesses that involve greater growth potential for Spain
 Promoting a business climate and facilitating doing business in Spain
 Transmitting an image of Spain as an internationalized country
associated with highly competitive human and technological resources
 To be the benchmark for foreign investors and the meeting point
between companies and institutions on State, Regional and Local levels
engaged in promoting and attracting investments
154
1. Information and Advice
 Personalized advisory service. Customized reports
 Information on European, National, Regional and Local grants and
subsidies applicable to investment projects
 Information on administrative procedures and advice on all stages of the
investment process
 Specialized consultancy on legal, technical and market areas through
partnership institutions
 Specialist publications: sector guides, tax, immigration and legal briefs….
2. Support and Management
Assistance with the establishment of foreign companies in Spain:
 Finding the best location for each project throughout Spain
 Organization and co-ordination agenda: meetings and visits to companies
and institutions across Spain, as well as with the corresponding regional and
local governments
 Identification of the strategic & technology partners for each project
155
3. Business Development
 Working in conjunction with regional and local agencies to provide clients
with the best possible service and location
 Help in seeking incentives, public and private finance for the
establishment, development and expansion of companies setting up in
Spain
 Introductions to other companies: to help with reinvestment projects,
suppliers, specialist consultancy…
 Partnership & management of joint investments by foreign companies and
Spanish investors
4. Business climate
Presents the collective needs and interests of foreign-owned companies to
the Spanish Administration
 Opinion surveys: individual interviews, focus-groups, analysis of the business
climate. Foreign chambers of commerce, associations, etc
 Legislative and administrative proposals
 Periodical publications on topics of interest to investors
156
6. Invest in Spain: Investor services
Services of special interest: Immigration Department
Provides advice on the most appropriate way (quickest and least
bureaucratic) to obtain the permits for highly qualified employees,
technical staff, scientists, families, ...
 Advice on how to open a branch, create or acquire a company ...
 Assessment for transactions that involve immigration issues for
foreigners without residence in Spain
 Act as the institutional contact for companies vis-à-vis all Spanish
bodies with powers, such as the Spanish Embassy and Consulates,
Ministry of Employment, Home Office and Regional Immigration
Offices
157
6. Invest in Spain: Investor services
Services of special interest: The Technology Fund Program
 The Technology Fund is a special budget of €2300 million from the
European Regional Development Fund (ERDF) created to promote
business R&D in Spain for 2007-2013
 Invest in Spain takes part in this European program with a €24 million
budget by promoting the capture of investments with a high degree of
R&D from foreign-owned capital companies
 Investment in facilities, equipment, human resources and technology
could be supported up to €200,000 per company in competitive
tenders.
 Since 2008, Invest in Spain has supported 127 projects in high valueadded sectors such as Biotechnology, IT, Renewable energies and
Environment
158
ICEX / Invest in Spain your partner in Spain
6. ICEX-Invest in Spain
Orense 58, 3rd floor
28020 Madrid SPAIN
T (+34) 91 503 58 00
E-mail: [email protected]
www.investinspain.org
159