Catalan industry: the Chinese to the rescue

A few days ago, the news announced that around 400 Catalan jobs will be saved due to an investment by a Chinese company in a bankrupt Catalan company put on sale by the liquidator. Jiaxipera, the compressor arm of Huanyi, a group controlled by the state-owned Sichuan Changhong company, will buy the Catalan compressor maker Cubigel at a price of 600.000 EUR and will be responsible for a credit of 2 M EUR received by the regional government's credit unit to take up production again. Jiaxipera has agreed to maintain 386 of the 551 jobs at Cubigel, with a 15% reduction in salaries though. The Chinese company will inject 3.5 M EUR immediately to revive Cubigel's cash-flow, and they plan to install a technical institute for compressors at the factory, that will do part of the group's I&D activities, and to convert their Catalan subsidiary into their logistics and commercial base for the European market.

[The information in this post comes from an original article published in La Vanguardia newspaper.]