Mannheim, Germany-based automotive supplier Röchling Automotive has opened its second factory in Spain, the company announced Sept. 4.
The 16 million euro ($19.1 million) plant, in Teruel has been built on an area of 40,000 square metres and will produce plastic parts and components for the automotive industry.
Wheel arch liners, deflectors and design covers are produced at the Teruel plant for the Ford Motor Co.'s factory in Valencia.
Cowl grilles will be added later this year, while active air shutter systems and SCR tanks are also planned for 2018.
"With our new plant, we can meet the increasing demand and at the same time reduce delivery times and logistics costs," explained Renzo Magnabosco, commercial director of Röchling Automotive Europe South.
The new location is strategically ideal, as it is in the middle of a triangle which takes in General Motors Co.'s assembly plant in Zaragoza and Seat-Volkswagen in Martorell. "Additionally, the plants of Nissan in Barcelona and PSA in Madrid can be easily reached," Magnabosco said.
The plant currently employs around 30 people, but the figure is expected to increase to 100 by 2019 when the plant will reach full capacity.
There are five more production machines planned for the site between 2018 and 2019, more than doubling production space 7,000 to 15,000 square meters.
"Through this investment, we continue our growth strategy in the Automotive Division at high speed," said CEO Ludger Bartels.
Also commenting on opening of the plant, Erwin Doll, responsible for the automotive division of Röchling, said the new site allowed the company to respond to customer needs in a “flexible manner.”
Röchling Automotive already has a business in Araia, Spain but the company says it is “no longer capable of handling the increasing customer orders from the Iberian Peninsula.”
"Furthermore, with its location in Teruel, Röchling continues following its strategy of promoting internationalisation and growth abroad," Doll said.
In the following years, said Röchling, the site is to be expanded further. The company has registered an interest in an additional 40,000 square meters of space.
"Experience shows that our newly built works will soon reach their capacity limits. We are ready for this," explains Luca Guella, technical director of Röchling Automotive Europe South.
Röchling expects to reach full production capacity in 2019 with a total investment of 21 million euros ($25.1 million) and expect to have a staff of nearly 100.