September 2003
  The newsletter for buyers and suppliers of castings and forgings

Spanish Forge industry

2002 confirms the general growth trend in the Spanish forge sector since the restructuring that started in 1996. Mergers and modernisation brought considerable increase in productivity enabling the sector to maintain a strong competitive position despite a difficult market situation, especially in 2001

  Production is back on track after stagnation in the year 2001

The Spanish forge industry reached a historical production record of 230 000 tons in year 2002, with a growth of 2.4% from the previous year. . The sector had previously achieved an impressive average annual growth of 10% between 1996 - 2000 until unfavorable market conditions caused a stagnation in 2001.

Total value of production reached 340 millions euros which represents a 4.6% growth from the previous year.

Productivity stable after a remarkable growth in 2000

Average productivity was stable at 72 tons (employee / year) and average average revenues per employee were 105 000 euros. This is close to the productivity level reached in 2000 after a remarkable growth of 15% annually between 1992-2000.

The main reasons for this growth are investments made in automation of processes and modernisation of machine park. It is worth noting that in 2000, price of input resources such as steel and electricity increased 15% and 10% respectively, making further productivity gains difficult.

Recruitment increasing slightly

In 2002, the sector counted 3200 employees, confirming the continuous progression since 1996. Precarious after restructuring during the late 90'ies, then economic crises in 2001, the sector has a tendency towards interim and temporary employment contracts.

The companies in the forge sector

Following the restructuring of the sector, the number of companies dropped from 40 in 1993 to 27 in 2002 to reach 30 companies in 2002. Most of these companies are located in the Basque region that represents about 87% of the national production.

The Spanish forges have done a lot of efforts in later years to respect global quality standards. Most of the companies have ISO9000 certification and a large number is in the process of obtaining QS qualification for the automotive sector (primary customer sector).

Customer sectors

The automotive industry is by far the most important customer sector of the Spanish forge industry representing 72% of production and a total value of 244 million euros. Due to this dependence on the automotive industry, the Spanish forge industry remains vulnerable to global economic cycles.



Exportations have remained a steady 44% of production representing 100 000 tons in 2002. 66% of Spain's forge exports are destined to the European market thanks to strong demand from the automotive industry, equipment manufacturers and petrochemical industry. 24% of exports are destined to North America, a total of 23 000 tons, followed by South America (5%) and


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Subcontract Solutions
Michel Portal
Tel : +33-(0)3 25 82 84 84

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