the word reindustrialization is one of the most repeated by Valencian politicians and business leaders speaking about the great challenges of the economy of the Valencian Community. However, the reality is that Over the last decade, the regional industrial fabric has reduced its production centersin addition to suffering from endemic diseases, such as be behind Spain in terms of productivity per job.
It is this decline which aims to fight against Reindustrialization strategy with which the Generalitat of Carlos Mazón has defined the guidelines and objectives of its industrial policy for the next four years. A plan which includes 22 strategic lines and 47 actions and to which the Autonomous Administration plans to devote 2 billion euros to it until 2028according to the presentation made by Mazón himself.
An industrial renaissance which will be impossible without private collaboration, as the President of the Generalitat himself recognized. The fundamental objective sought by the measures of this plan is therefore generate 10,000 million euros of induced investment by the expected companies.
X-ray
The initiative is based on an x-ray of the situation of Valencian industry. Among the conclusions, the document highlights that The number of industrial establishments decreased by 3.14% between 2012 and 2022. Although this trend has eased, “until 2016, we observed a gradual decline in the number of establishments, with a cumulative decline of 11.4%”.
In which sectors has this decline had the greatest impact? Manufacturing of furniture, non-metallic mineral products (ceramics industry), metal products and leather and footwear sector They were the ones most affected by this fall. This reduction can weaken the industrial structure and affect the economic diversity of the region.
Despite the overall decline, the report highlights the sectors that have gained production centers: the food industry, repair and installation of machinery and equipment, anda little less, the collection, treatment, elimination and recovery of waste.
The funds
The big unknown in this plan is where the funds will come from and how they will be distributed, since the document presented includes axes and lines of action but without detailing the economic budgets or the origin of the money.
Indeed, the first actions in progress include already existing elements, such as the aid program to promote strategic industrial projects for the reindustrialization of the Valencian Community. Recently, the Minister of Innovation, Nuria Montes, announced that the 11 projects out of the 26 presented which will receive 19 million euros from 2024 to 2026.
Although he did not reveal the elected officials, he specified that they planned in total an investment of 263 million euros and the creation of nearly 1,000 new jobs. Montes mentored selected companies in the sustainability and clean energy sources, aerospace and biosanitary, where he mentioned the case of Edwards Lifesciences, which is building a heart valve factory in Moncada (Valencia).
In addition, the Mazón executive added direct aid to companies like Ford to other large investors, like PowerCo, the battery subsidiary of Volkswagen which promotes the Sagunto gigafactory, and more recently the railway factory of Stadler in Valencia, for which 45 million grants were signed after guaranteeing the completion of a 4 billion euro contract in the region.
More industrial land
Another of the actions that will absorb regional funds is the creation of industrial land, another of the gaps recognized by the analysis, especially in traditionally industrial areas such as within the province of Alicante. The existence of large, affordable plots has also played a key role in bringing projects such as Volkswagen to Sagunto.
The plan includes the creation of the “Industrial Land Promotion Hub” with the aim of increase industrial land up to 10 million square meters over the next six years, as well as modernizing and improving existing areas.
In addition, another point that the Regional Executive insists on is the rationalization of bureaucracy, with the commitment to eliminate 20% of bureaucratic procedures for industrial projects.
