2002 Annual Report

Contents

Highlights 7

Message from the President 8

FINANCIAL GROUP 11 • Caja Laboral 13 • Lagun-Aro 15 • Seguros Lagun-Aro 16

INDUSTRIAL GROUP 17 • Automotive 20 • Components 21 • Construction 22 • Industrial Equipment 23 • Household Goods 24 • Engineering and Capital Goods 25 • Machine Tools 26

DISTRIBUTION GROUP 27 • Eroski Group 30 • Erkop 32

RESEARCH, TRAINING AND EDUCATION 31 • Research Centres 34 • Training and Education Centres 37

Financial Statements and Trading Account 41

Organisational Structure 46

Social and Management Bodies 47

List of MCC Companies 48

5 Certificates and Recognition

n 2002, in addition to the general application of ISO 9000 among the Corporation’s I companies, numerous co-operatives obtained ISO 14000 Environmental Certification. The use of the EFQM Management Model continued to be the basic reference for measuring the level of quality.

Three of our companies – Eroski PMG (General Goods Depot), Fagor Minidomesticos and Ulma Packaging – achieved the “Silver Q” after obtaining more than 400 points in an external assessment, based on the EFQM Model criteria. Thirteen obtained ISO 14000 Environmental Certification. Another three ISO-TS Certification, which has become the maximum unified standard in the automotive sector. Finally, four companies, mainly in the services sector, obtained ISO 9000.

At 31 December 2002, the list of Quality and Business Excellence Certificates and Prizes obtained by MCC companies was as follows:

1 European Prize for Business Excellence achieved by Irizar. 3 Gold Qs: Caja Laboral, Copreci and Fagor’s Cooking Business. 5 Silver Qs: Fagor Electrónica, Orkli, Eroski PMG, Fagor Minidomésticos, Ulma Packaging.

89 ISO 9000, 28 ISO 14000, 21 ISO-TS

ER-193/1/94

★★★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ ★ Highlights

In millions of euros 2000 2001 2002

Total Sales 7,065 8,106 9,232

International Sales 1,945 2,165 2,455

Assets under 7,040 7,891 8,474 Administration*

Equity 2,340 2,688 3,102

Investment 738 872 683

Results** 367 335 370

* Caja Laboral ** Not including Lagun Aro’s results

Personnel

53,377 2000 60,200 2001

66,558 2002

7 n a year in which the economic slowdown intensified and the I uncertainty increased all over the world, with the resulting negative effect on investment and spending, the activities of our Corporation performed reasonably well. Sales increased by 14% and results were 10% up on the previous year, with 6,358 new jobs created within the MCC.

The financial area recorded a 5.3% increase in the profitability of normal banking business, even though it was considerably affected by the falls in the stock market. On the other hand, our industrial companies recorded a significant 16.5% increase in sales. This was a result of the new companies set up and our dynamic performance abroad, with international sales accounting for 50.8% of total sales and a reinforcement of our presence abroad, especially in China.

In the distribution area, the growth in sales and results was above the average for the sector. A lot of investment was earmarked for the opening of new stores and the adoption of important business decisions. Among these the following stand out: the success of the “Subordinate Eroski Financial Contributions” on the capital market and the alliance signed with Les Mosquetaires-Intermarché, one of the leading European Groups in the retail sector.

On the international stage, I would also like to highlight the recognition that it meant for our Corporation to be one of the finalists in the second edition of the “Milestones” European Business Awards, in the large company segment in the Globalisation category. The award was organised by the Ministry of Economic Affairs of the German Land of North Rhine-Westphalia, and companies entered from 13 different European countries. We were also chosen by a well-known US magazine as one of the ten best European companies to work for, from an original list of 60.

As in previous years, quality continued to play a leading role. Three of our companies obtained the Silver Q: Eroski PMG, Fagor

8 Minidomésticos and Ulma Packaging, after achieving more than 400 points in accordance with the EFQM assessment model. Thirteen of our companies obtained ISO 14000 Environmental Certification and three achieved ISO-TS.

Innovation also continued to be one of the basic pillars of our development, mainly in the form of projects carried out as part of our Science and Technology Plan and the start up of a number of Company Research Centres, in line with the philosophy of the Garaia Innovation Park. During the year, the MIK, Aotek and Orona eic Centres all saw the light of day, and companies were set up for the subsequent launch of Koniker and Edertek.

I would also like to stress the dynamism of our education centres, in particular the University of Mondragón. The University continued to extend the number of degree courses on offer, set up in other areas of the Basque Country and collaborate closely with companies banking on innovation.

In institutional terms, the re-incorporation of Matrici into the MCC and the subsequent creation, together with Batz, of the new Forming and Assembly Grouping were important. This new Grouping will be the leader in Spain and at the forefront of the sector in Europe. I would also like to highlight, among the new projects, the setting up of the GSR Co- operative, for the integrated management of Homes for the Elderly.

To close this message of greeting, I would like to remember and express our gratitude to our four colleagues from Fagor Arrasate, who were tragically killed in an air crash in Iran, whilst they were meeting their

Jesús Catania professional obligations, in pursuit of an President of the General Council important order for their co-operative.

9

FinancialFinancial GroupGroup

11 Financial Group

here were a number of the company segment, more than In 2002, there was a 4.1% T important events in 2002 in 10,000 client-companies are now increase in the volume of the financial area. Namely, the using Caja Laboral Net. More commercial transactions abroad, euro taking over from the pesetas than 3 million transactions were taking the total amount to 2,004 as the legal currency, the big, carried out during the year via the million euros. 68% of this widespread fall in the stock Internet. Other client services business was with co-operative markets and the reductions in the worth highlighting are automatic enterprises and the remaining interest rates applied by the payment and collection by means 32% with other client companies. central banks on both sides of the of electronic files (9.2 million During the year, the network of Atlantic to boost the reactivation operations in 2002, which was a foreign correspondent banks was of the international economy. 20% increase) and the sending of reinforced. The total is now more client correspondence telematically. than one thousand, and the new As far as the MCC’s Financial banks are located in countries Group is concerned, its normal Profitability. In banking, in and areas that are very dynamic activities performed well last year. spite of the falls in interest rates, in economic terms, especially However, the disappointing the gross earnings margin Southeast Asia. performance of the stock markets increased by 3.7%, with an affected final profitability, which efficiency ratio of 44.4%. This Development. The turnover of was lower than that obtained in means that administration costs this Group continued to increase 2001. were well contained in relation to in 2002, with assets under the ordinary margin obtained. administration recording a 7.4% In 2002, the fulfilment of the Basic However, the negative perfor- increase and bank investment a Corporate Objectives by the mance of variable income 15.9% rise. In turn, the MCC’s Financial Group can be securities had an adverse effect capitalisation of the results summarised as follows: on the return on financial achieved helped to reinforce the operations, affecting the overall soundness of the net worth of the Customer Satisfaction. In the profitability for the year, with a institution, taking Caja Laboral’s area of quality, the improvement 7% drop in profit after tax. equity to 978 million euros, which actions decided on after the EFQM is a 7.1% increase, and Lagun- assessments were started, giving a Mention should also be made of Aro’s assets to 2,549 million boost to knowledge management how Lagun-Aro’s investment euros, which is a 5.1% increase. and a review of the process policy, portfolio was managed. The fall in and re-establishing the key shares was offset by the return on In 2002, 22 new branches were processes, which have priority. Our other assets, with an average opened, most of them in Castilla- economic-financial management return of 3.27%, which is in León and Zaragoza. This took the skills have also been endorsed by contrast to the losses recorded by total number of branches to 322. the assessments given by the IBCA pension plans as a whole in the This has enabled the client base to and Moody’s rating agencies. domestic market (-4.84%). be increased by 45,000 people, taking the total number of clients On the commercial side, the Internationalisation. Caja to 965,000. As far as Lagun-Aro channels for remote banking Laboral is the only company in is concerned, record figures were continued their consolidation, with this Group that operates on the reached in terms of the number of more than 100,000 Caja Laboral international stage, backed by an members (27,202), beneficiaries clients now using our telephone extensive network of foreign (51,672) and pensioners (6,167). and Internet banking services. In correspondent banks. Social Responsibility. In 2002, in

12 Grupo Financiero

terms of training, 388 courses earmarked for co-operative for possible future requirements in were given at Caja Laboral training and promotion, as well as terms of employment aid accounting for a total of 73,457 research, cultural and health-care continued to be strengthened, class hours, with the focus on activities. taking the total to 39.5 million training with a high technical euros.
content. Several promotion As far as caring for the courses were also held, which environment is concerned, it Juan María Otaegui were attended by 782 members. should be pointed out that UNE- MCC Vice-president Aid continued to be provided for EN ISO 14001-96 Environmental Chief Executive - Financial Group complementary courses. Overall, Management certification was 68% of the total workforce took maintained for the head offices. part in some kind of training activity or another. Among the aspects relating to Lagun-Aro, as part of the It should also be highlighted that Employment Benefit scheme last over the year, 9.8 million euros year a definitive solution was from Caja Laboral’s Education found for 15 surplus members. In and Promotion Fund were economic terms, the fund created

CAJA LABORAL Sdad. Coop. de Crédito

aja Laboral is a credit C institution set up by the industrial co-operatives. From the start it has been fundamental to the funding and development of the co- operative movement, playing a key role in the shaping and cohesion of what is today Mondragón Corporación Cooperativa.

2002 was a difficult year for the financial sector, in a climate of acute uncertainty, low interest Caja Laboral, Elorrio branch rates and strong competition. For Caja Laboral, the year was at the end of 2002, which is an trend of the previous year, characterised by considerable increase of 7% compared to the customer savings were mainly growth in the volume of business previous year. directed towards traditional and adequate cost control, in schemes. Term deposits performed spite of the difficulties in achieving Customer assets under best, with 12.8% growth. Off- the profitability targets set. administration totalled 8,474 balance sheet assets, mainly unit million euros at the end of the trusts and welfare funds, only Total assets on the balance sheet year, with an increase over the increased by 2.8%, although this accounted for 9,214 million euros year of 7.4%. Continuing the was affected by the fall in the

13 convertible value of those trusts took place mainly in monetary Finally, mention should be made with variable income securities in assets and public funds. of Aroleasing, a company their portfolio. For its part, investment in cash, specialising in financial leasing, banks and credit institutions, the which belongs 100% to Caja Equity continued to grow, boosted balance of which includes the cash Laboral. by the profitability obtained and and central bank figures, as well as the demanding policy of the net position with credit In 2002, there was a slowdown in capitalisation of profits. The final institutions accounted for a balance business investment, which figure was 978 million euros. In of 965 million euros at the end of affected Aroleasing. The value of accordance with Bank of Spain the year. This was a 26.6% drop new contracts signed fell by regulations, the institution’s capital compared to the previous year. 10.4% compared to the previous adequacy ratio was 15.4%, well year, to account for 121 million in excess of the minimum In terms of the profitability obtained euros. Of the total investment, requirement of 8%. in 2001, normal banking business 59% was channelled through the performed acceptably, with a branches of Caja Laboral. As far as lending business was 3.7% increase in the gross concerned, bank investment earnings margin. However, the However, loan investment at the increased by 15.9% over the negative impact of the results from end of the year totalled 294 year, taking the balance of this financial operations, as a result of million euros, with an increase of heading to 6,084 million euros. the poor performance of the stock 8.4% over the year, and the The most active type of loan markets, had a detrimental effect doubtful debt ratio at 1.21% and continues to be the mortgage on the overall profitability, taking bad debt cover at 201%.
loan, with a year-on-year increase the net results for the year to 100 of 851 million euros (23%). million euros, which was 7% lower Mortgage loans now account for than in 2001. 75% of all loans to the private sector. In this regard, it should be stressed that the net returns Gross investment of the securities achieved by Caja Laboral on its portfolio, consisting of fixed and average total assets was 1.12% in variable income securities, as well 2002. This is a “ratio” that as holdings in group companies, compares very favourably with rose to 1,468 million euros. This that obtained by other financial was an increase of 7.8%, which institutions.

Assets under Administration Net Bank Investment Equity In millions of euros In millions of euros In millions of euros

8,474 6,084 978

7,891 5,163 913 7,040 4,349 845

2000 2001 2002 2000 2001 2002 2000 2001 2002

14 LAGUN ARO Assets These benefits are guaranteed by Provident Society In millions of euros Lagun Aro’s funds, which at the end of 2002 totalled 2,549 million he members of the Lagun- 2,549 2,425 euros, once the returns on the Aro Provident Society are investment portfolio had been T 2,250 mainly members of co-operatives applied. In spite of the poor forming part of the Mondragón performance of the stock markets, Corporación Cooperativa. Lagun- with the resulting effect on the Aro provides social cover for these investment portfolio, in comparison people and their beneficiaries, with the close of 2001, the fund similar in scope to the State system. has increased by 123 million

2000 2001 2002 euros, which is 5.1% in relative At 31 December 2002, there terms.
were 27,202 members in 116 co- operatives, which is a net increase of 1,252 people. Half of these new members correspond to As in recent years, it is worth the new modes of contribution for highlighting employment aid, as Limited Duration and Special its net cost totalled one million Quota members. euros, with a surplus of 5.9 million euros generated. This amount, As far as pro rata benefits are added to the 33.6 million euros concerned, which cover short-term from 2001, means that there is benefits, these totalled 50.1 now a positive balance of 39.5 million euros in 2002, in the million euros. following areas: The benefits for Retirement, • Sick Leave, 25.7 million euros Widowhood and Invalidity, which (51% of the total) have to be guaranteed for long • Health care, 18.9 million euros periods of time and for a large (38% of the total). number of members, are financed by reserves to guarantee the relevant pensions. This enabled 48.4 million euros to be paid out in 2002. At the end of the year, there were 6,167 people receiving pensions.

15 SEGUROS LAGUN ARO The income obtained from As far as Customer Satisfaction is insurance premiums totalled 118 concerned, the results of the he slowdown in the million euros, which was an annual survey stand out. They put T economy in 2002 meant increase of 7.4%. In terms of Seguros Lagun Aro in a leading that in the insurance sector there companies, Seguros Lagun Aro position in relation to the was only moderate growth of 4% accounted for 84 million euros, a competition. in terms of new premiums 10% increase compared to the compared to the previous year, previous year and Seguros Lagun As regards People Development, without taking into account any Aro Vida accounted for 34 million training programmes continued to extraordinary operations at the euros, an increase of 1.5%. be run, with 7,560 hours of end of the year. There was a 3% training over the year. These drop in life insurance and 12% In 2002, six new offices were programmes help to improve growth in non-life insurance. opened (Amorebieta, Barakaldo- people’s qualifications and San Vicente, Bilbao-Sarriko, improve the organisation as a In this climate, total income for Elgoibar, Gazteiz-Lakua and whole. 28 new jobs were also Seguros Lagun Aro came to 166 Iruña-Rochapea), taking the created, which was an increase of million euros, which was an company’s total number of offices 10%. 9% of the workers also increase of 8.8% compared to the in the Basque Region to 59. received promotion.
previous year. This was clearly better than the growth recorded The risk selection policy was by the sector as a whole. maintained, putting the accident rate at a lower level than the average for the sector, and having significantly reduced the ratio in terms of income from premiums. This positive performance, together with the reduction in management costs, made it possible to neutralise the negative effect of the poor performance of the stock markets and exceed the profitability targets established in the Strategic Plan.

16 IndustrialIndustrial GroupGroup

17 Industrial Group

he industrial sector was the The Corporate Management Therefore, in spite of the T one most affected by the Model aims to help the slowdown in the economy, the worsening of the economic situation organisation advance down the Results of the Industrial Group, in 2002, due to the fact that it is path towards excellence, in order before discounting the interest more involved in international to achieve positions of leadership paid on Share Capital, increased trade. Therefore, last year industrial and promote co-operation. An by 23% compared to 2001, with production only experienced token attempt has been made to include profitability over sales at 4.5%. growth of 0.2% at the national level in the model the best practices and fell by 0.8% in the Basque that already form part of the Development. The turnover Country. culture of our Corporation, as a achieved in 2002 totalled 4,049 result of its business experience. million euros, which was 16.5% As far as MCC’s Industrial Group is higher than in 2001. However, this concerned, its performance In the quality area, work continued growth was due in part to the indicators started 2002 recording on pursuing improvement targets aforementioned incorporation of improvements, although later they in the EFQM assessments, given new co-operatives, which means returned to positions indicative of a that practically all the MCC co- that the year-on-year comparison is slowdown in demand. However, operatives now have ISO 9000 not homogeneous. The most the worsening of the economic certification. In 2002, the significant increase in turnover took climate did not prevent some industrial co-operatives Fagor place in the Construction division, important achievements from being Electrodomésticos (small domestic which doubled its sales thanks to recorded at the end of the year in appliances business unit) and the incorporation of the Ulma relation to sales, job creation and Ulma Packaging received Group. The Machine Tools and internationalisation. A significant recognition from the Basque Industrial Equipment Divisions also contribution was made in this Foundation for Quality (Euskalit) performed well, with increases in respect by the new co-operatives for the level of quality of their turnover of around 14%. that joined the MCC at the start of business management. Both last year: Ampo, Ecenarro and the companies were awarded the In line with the performance of Ulma Group. Silver Q prize, after having sales, industrial employment also scored more than 400 points in continued its upward trend. In There follows a series of comments the EFQM assessments carried out 2002, 4,116 workers joined the on the most important achievements by external auditors. Industrial Group, with 2,903 in terms of the Basic Corporate corresponding to the co-operatives Objectives. As far as business innovation is joining the Group and the concerned, steps were taken to remaining 1,213 to newly created Customer Satisfaction. In 2002 start up four new R&D centres. jobs. This took total workforce to progress continued to be made with Fagor Automation was awarded 31,166 people at the end of the this objective, with some of the a prize by a jury of Basque year, of which 6,391 jobs (20% of actions taken being the updating of businessmen as the Basque the total) were abroad. the Corporate Management company of the year in terms of Model, an improvement in quality Business Innovation. Another variable that shows how and the promotion of innovation as the Industrial Group is performing an essential element for Profitability. The slowdown in in business terms is the investment management as well as the offer of demand recorded in 2002 figure for last year, which totalled products and services. affected the production rate of the 378 million euros, a significant Industrial Group. However, the figure that was 34% higher than the effect was not excessive and the amount invested the previous year. Group managed to maintain its level of profitability.

18 Internationalisation. The Total Sales International Sales international sales achieved by In millions of euros In millions of euros the Industrial Group, which 4,049 2,058 include exports plus sales from 1,769 3,475 production plants abroad, totalled 3,170 1,568 2,058 million in 2002, with a considerable year-on-year increase of 16.3%, in spite of the considerable appreciation of the euro compared to the dollar recorded over the year. This new step forward towards the strategic 2000 2001 2002 2000 2001 2002 objective of internationalisation led to international sales accounting for 50.8% of total sales in 2002, which is very much Investment Workforce in line with the figure of 50.9% In millions of euros recorded in 2001. 378 31,166 294 282 27,050 In terms of new production plants 25,593 abroad, there were a number of highlights in 2002. Fagor Electrodomésticos took a holding in Brandt Electromenager (France), in alliance with the Elco Group. New plants were set up by Matz

Erreka in Mexico, Fagor Sistemas 2000 2001 2002 2000 2001 2002 and Danobat in Germany, and Fagor Electrodomésticos, Orkli and Irizar in China. For the latter co-operative, this was its second factory in China. process of developing these payment system to be used in programmes, in order to improve these cases and the steps to take Social Responsibility. In this the quality of life in the when the personnel return home. regard, work continued on environment we live in. This will help things to run promoting co-operative employment, smoothly in these situations and by encouraging employed Finally, the preparation of a increase the willingness of the co- workers working with contracts in Management Model for our operatives to participate in setting the co-operatives to become workforce abroad should be up plants abroad, as part of the members. 220 people did so in highlighted. This will serve as an internationalisation process.
2002. essential guide for an intensive internationalisation process like Work also continued on that being undertaken by the implementing Environmental Ma- MCC. The aim of the document nagement Systems. 27 co- was to establish a common operatives had been awarded operating policy for all the co- ISO 14001 certification by the operatives in the MCC’s Industrial end of 2002, although many Group when sending personnel to others were going through the work abroad, as well as the

19 AUTOMOTIVE

n 2002, this Division For Fit Automoción, 2002 was a Cikautxo increased its sales by I consolidated the spectacular record year, in terms of sales 12% and consolidated its increase in sales recorded in (48% growth) as well as production process. Its plants in 2001, with 3% growth, in spite of production, employment generated Paranoá in Brazil, the Czech the stagnation or fall in its and results, with the focus on Republic and Zaragoza recorded customers’ vehicle production. The preparation for the manufacture of significant advances. The decision Division now has 11 companies, new products. Ecenarro had a was taken to set up another new together with 7 subsidiaries and a successful first year in the plant for the manufacture of workforce of 6,300 people. Corporation, achieving a good rubber pipes in Borja.

In Mondragón Automoción Maier increased its turnover by CHP, Fagor Ederlan again close to 20%, as a result of its increased its sales and the expansion abroad. The company number of jobs by 8%. The focused its efforts on consolidating company consolidated its project the structure and strengthening the in Brazil, by taking a 100% companies it controls in Spain, holding in Fagor Fundiçao United Kingdom and Brazil. In Brasileira, started up a low FPK, where MCC now shares a pressure aluminium plant for the capital holding with Aksys, 1.36 manufacture of Daimler Chrysler million parts were produced in knuckles, as well as new facilities GLF, a new GMT plant was in the engine area with the start installed and the industrialisation of the manufacture of a housing process was carried out for the for PSA. Likewise, in agreement lower carrier for Volvo.
with MCC Inversiones ad Batz, the co-operative took a majority Maier José María Aldekoa MCC Vice-president holding in Automódulos, made Chief Executive - Automotive Division up of Automódulos Aragón and Fagor Ederlan Borja. In the field level of turnover and very of RDI, Edertek was set up as the significant improvements in Grouping’s Technology Centre. internal management. Auto- módulos became a 100% MCC Luzuriaga Tafalla continued to company, well situated in terms of record good results and carried the future, having won the out a significant change in its contracts for the manufacture and production mix, incorporating a assembly of the rear axle for new 10-million euro core-making Opel’s Meriva and the assembly line for the manufacture of engine of the axles for the future blocks for the PSA and Renault Fiat/Opel platform. groups. Luzuriaga Usurbil conso- lidated its European leadership in In Mondragón Automoción the manufacture of brake housings BCM, Batz increased its sales by in iron and developed new 11% and developed for the first manufacturing processes for time the complete pedal module In millions of euros aluminium housings, with techno- for the Meriva. In Brazil, a 2001 2002 logies that provide outstanding technological agreement was mechanical characteristics com- reached with a local manufacturer Sales 750 772 pared to the products currently on to tackle customer service and International sales 504 523 the market. meet the company’s commitments.

20 COMPONENTS

he most important aspects electronics business and a that is compatible with the envi- T of the year were the 8% significant advance in the plants in ronment. Internationally speaking, increase in the turnover of the Brazil and Italy. As far as new the company achieved QS-9000 Division as a whole and the products are concerned, Copreci approval for the automotive creation of 134 new jobs. launched an induction generator, sector for its plant in Thailand. with big improvements in terms of In the international sphere, Orkli features and Embega completed the As far as the company’s business started up a plant in China and development of a new condenser units are concerned, Semi- Divisional Offices were opened in for the European dryer market. conductors again only recorded Beijing with Chinese and Spanish moderate growth due to the staff. Copreci started production global crisis in the sector. The unit and sales in Brazil and Matz- boosted its image in Europe with Erreka did so in Mexico, where a the presentation at the Munich significant boost was given to the Electronics Fair of its extended washing and cooking component range of Thyristors and started to activities at the Copreci plant in supply semiconductors to a Guadalajara. multinational group in the Japanese market. In terms of innovation, the first part of the plan was completed Electronic Subcontracting conti- successfully and the hybrid gas nued to perform well, with a very sensor system project using significant increase in turnover.
CMOSS technology was concluded jointly with the University of José Luis Olasolo VMCC Vice-president Tübingen and the Swiss federal Chief Executive - Components Division Institute of Technology. The first Orkli experimental mock-ups were also obtained in the fuel cell project, using metal electrodes instead of ceramic ones, in order to achieve Home Comfort had a tough, greater competitiveness and difficult year. However, sales reliability. increased by 7%. They rose by as much as 16% in control systems In the Eureka programme, the for boilers and domestic and gas experimentation phase was water heaters, thanks especially to reached in the final product, for the foreign market. The Central the microsystem prototypes for the Heating activity also strengthened overall control of boilers. its position in the European Important advances were also markets. achieved in the development of microsensors for application in Electronics was affected by the domestic appliances, with the slowdown in the sector all over culmination of the functional tests the world. In spite of this, growth and their characterisation. was in excess of 10%. In the In millions of euros

environmental field, Fagor 2001 2002 In White Goods, where Electrónica achieved ISO 14001 moderate growth was recorded in certification, which demonstrates Sales 390 422 the sector, there was a rise of 17%, that the company carries out its International sales 255 266 with a strong increase in the production activities in a way

21 CONSTRUCTION

ith the incorporation of the works, several bridges in Uruguay totalling close to 350 million euros, W Ulma Group, the turnover and France. which was an increase of 11% and of the Division doubled in absolute meant a profit of 24 million euros. terms compared to the previous Ecotècnia focused hard on its This was a sign of the positive year, although in like terms, the technological development policy performance of the Group, whose increase was around 10%. and the manufacture of a new diversification strategy and focus on highly modular 1,670 kW wind- Total Quality continue to be its main In Systems and Services, the powered generator. Work also assets. The total workforce of the Orona Group ended the year with started on the refurbishment of the Group came to 2,474 people, of sales totalling 185 million euros, whom 425 are working abroad. which is 20% higher than in 2001 162 new jobs were created in and well above the forecasts. This 2002. strong expansion was based on both the domestic and international On the international stage, four new markets. The Group is present in subsidiaries were set up in Holland, 68 different countries. It is also Great Britain and Peru. The Group worth highlighting that the Group now has 20 facilities abroad and is maintained a high level of present in 55 countries. In terms of investment and created 200 new innovation, there were significant jobs. qualitative advances, mainly with the start-up of the Packaging An ambitious infrastructure plan was Technology Centre in Oñati and the also tackled, with the refurbishment ULMA Construction R&D centre in of practically all the Group’s Work Germany. Centres –44 in total- and the start of the extension work on the Hernani Orona The Group also continued to focus facilities and the construction of the on developing a Management Orona eic Research Centre. The strategy based on Total Quality most important projects over the year building that is going to house the principles (Customer Focus, were the Artium Museum in Vitoria, company’s new headquarters in Continuous Improvement and the Lawcourts in San Sebastian and Barcelona. A plant was also started Total Participation). This strategy the shuttle service terminal at up for the construction of wind- took the shape of a Management Barcelona airport. Agreements were powered generator towers in Model based on the EFQM also signed to supply equipment for Coreses (Zamora) and offices were model.
the Bilbao Exhibition Centre and opened in Toulouse to promote Jesús Maiztegui Forum 2004 in Barcelona. development in France. VMCC Vice-president Chief Executive - Construction Division Urssa carried out or was awarded a Biurrarena continued to promote its number of important projects. These environmental activities, with the included: in terms of industrial study of recycling plants for buildings, the pickling, dispatch and domestic appliances. Rochman continuous pouring facilities at the strengthened its presence in airports ACB steelworks in Sestao, as well as by means of an agreement with

two Combined Cycle power stations Fabricón. Lana recorded growth of In millions of euros in Santurce and Algeciras; in terms 21% and inaugurated its new 2001 2002 of urban buildings, the 22,500 facilities in Oñati. tonnes of the Bilbao Exhibition Sales 346 725

Centre and the Antas Stadium in In spite of the general crisis, the International sales 40 151 Oporto; and in terms of public ULMA Group recorded sales

22 INDUSTRIAL EQUIPMENT

earing in mind the general and its components companies, processes, increased their number B economic situation, charac- thereby consolidating its business of printing presses, and maintained terised by a slowdown and strong project. The supply of its latest PB a good level of profitability. lack of dynamism, especially in the model was extended to all markets, Alkargo consolidated its position most important markets, the and the company’s range and with medium-power and dry performance of the companies in market share were increased. encapsulated transformers. Coinalde the Division was excellent. They promoted international development increased their turnover by 23% Ederfil focused on optimising by consolidating its most strategic and achieved an average rate of processes and making them more products. profitability of more than 8% over sales, with a 46% improvement compared to 2001.

Leisure-Sport had a brilliant year, with international sales accounting for 68% of total turnover and a profitability of 12% over sales. Dikar-Wingroup conti- nued to consolidate its international project, by strengthening its positions in terms of strategic markets and customers, especially in the US. Eredu continued to develop its Enea range of design furniture, thereby consolidating its leadership in chairs and extending Irizar its presence abroad.

Orbea continued to develop flexible as well as preparing the Finally, Oiarso and Osatu also international markets and networks, company to tackle another phase of grew as a result of the international promoting its image as an growth. Ampo increased its turnover markets. As far as new products innovative brand in terms of by 9%, with its valve business unit are concerned, Osatu got products and technology, due to its performing well and an important approval for and prepared a new high technical level and investment plan undertaken. Hertell semi-automatic defibrillator for capabilities, and consolidating its and Urola continued to develop and production. This product will be the profitability on the basis of efficient become more profitable. basis for the company’s processes and excellent service. international expansion.
Industrial Services increased Components and Technical turnover, based on a 26% rise in Iñaki Otaño MCC Vice-president Equipment reinforced its size and international sales. Alecop Chief Executive - Industrial Equipment Division potential with the incorporation of strengthened its business units, by Ampo. In a year characterised by a boosting sales with a 50% increase stabilisation of the positions in international sales acting as the achieved and the preparation of driving force. In millions of euros new projects, there was a 29% 2001 2002 increase in turnover, with a volume Mondragón Graphics, with Elkar, of investment of 19% over sales. Danona and Rotok, continued to Sales 453 557

Irizar continued to promote its make advances in mastering International sales 290 367 companies, especially those abroad digitalisation technologies in their

23 HOUSEHOLD

n spite of the poor Other aspects worth highlighting to 35 million euros, together with I expectations and uncertainty were the start up of i-business with close collaboration in purchasing at the start of the year, with a suppliers and the two-year management. general fall in the demand for warranty implemented by Fagor, in consumer goods, this Division had anticipation of the new European Domusa, a co-operative engaged a satisfactory year that was not regulations. in the manufacture of individual free from complications. A 3% boilers also performed very well, increase in sales was recorded, In the international area; the with a 28.4% increase in sales with a significant improvement in Shanghai Minidomésticos Cookware and a 31% increase in exports. profitability. As far as quality is concerned, Fagor Minidomésticos In Furniture, it was an especially obtained the Silver Q award. tough year for Danona and Coinma, with a slight reduction in In Domestic Appliances, in a sales due to the general fall in the difficult climate that was not very market, both at home and conducive towards a reactivation abroad. However, abroad there in consumer spending, the sales were also very positive advances figures were repeated in the in the performance of the joint- domestic market and there was a venture in India, the collaboration 6.3% increase in the international agreement signed in Mexico and market, where sales accounted for opening of stores in London, in an 44% of total sales. The total attempt to promote a direct sales workforce of the Grouping at the presence in England. end of the year was 6,179 people, with the creation of 157 new jobs. In Commercial Equipment, Danona Fagor Industrial performed well, A series of measures avoided the with a solid market position, a effects of clearly adverse situation. 15% increase in turnover and the The rapid construction of the new joint venture was inaugurated in consolidation of its plants located warehouse in Vitoria had a direct China. It is equipped to in Cordoba, Catalonia and effect on improving distribution manufacture a million pressure France. Kide, in a tough year for costs. Investments were made in cookers a year. The new washing the sector, managed to increase Argentina to substantially reduce machine assembly line was exports by 8%. The company also the effects of the crisis. The inaugurated at the Wrozamet set up a business unit to reconversion in recent years of the plant for the assembly of 66,000 manufacture doors for cold stores refrigeration and electric water units a year. The company also and incorporated new ranges and heaters plants has made it achieved leadership in the Polish new materials in its catalogues.
possible to tackle the constant cooker market. In Morocco, increase in costs. Fagor performed well with a Fernando Gómez-Acedo VMCC Vice-president 35% market share in Chief Executive – Household Goods Division In Spain, Fagor Electrodomésticos refrigeration, 42% in water continued to be the indisputable heaters and 23% in washing leader in unit sales, with a 22.5% machines. It is also worth

market share, with three of its four stressing the collaboration with In millions of euros brands -Fagor, Edesa and Aspes-, Elco-Brandt, in the form of a 10% 2001 2002 among the top five in the sector. holding and an industrial The Fagor brand was partnership agreement that in Sales 1,049 1,080

consolidated as the leading brand 2002 led to the mutual exchange International sales 439 463 in terms of units sold and turnover. of 203,672 products worth close

24 ENGINEERING AND CAPITAL GOODS

n a negative year all over the The Grouping’s list of customers Grouping. LKS now groups I world for the sector, the continues to be long and of high together the Consultancy, Law and Division also saw a significant quality. In the automotive sector it Information and Communications brake put on its business growth, includes Ford/Volvo, Volkswagen/ Technologies (ICTs) business units, with a fall of more than 6% Seat, Renault, DaimlerChrysler, focused on management. LKS is compared to the previous year. PSA Group, Opel/GM, BMW, now point of reference comparable However, international sales Honda and Saipa (Iran), as well as to the multinationals in the sector. performed quite well with a 13% the megasuppliers Magna, Tower, MSI incorporated the Engineering increase and, although it was a Johnson Control, Benteler, Gestamp, Systems business units in difficult year, there was sufficient Automation, Control and Commu- profitability to complete the nications, and will offer services to investment process started in 2000. Mechanical, Iron and Steel and Transport Engineering companies. Automation and Control suffered the consequences of a The new sheet metal Forming domestic market clearly in and Assembly Grouping was recession, but managed to maintain set up at the end of the year. It is its positions on the international made up of Batz and Matrici, a stage, with significant growth in company that has rejoined the China and Southeast Asia. In terms MCC, and is set to be a market of technology, work continued on leader in the European automotive new product development and the sector. Both companies will “Aotek” Research Centre was set continue to operate as two up for medium- to long-term product separate co-operative enterprises, and technology development. as part of a joint project enabling Fagor Arrasate then to offer customers “the Forming Machinery, with a complete car” as far as formed strong presence in the automotive sheet metal and subsequent and domestic appliance sectors, Tenneco, GKN, Valeo and Oxford. seaming and assembly systems are was affected by the slowdown in In the domestic appliance sector the concerned.
the investment policy in these list includes General Electric/ sectors, falling back in the domestic Mabe, Whirlpool/Fadsa, Electrolux, José Ramón Goikoetxea MCC Vice-president market and with exports rising by Bosch-Siemens, Maytag and Fagor. Chief Executive - Engineering and Capital 17%. On the international stage, In the iron and steel industry it Goods Division the expansion of Mondragón includes Thyssen Krup, Aceralia/ Assembly stands out, with new Arcelor, British Steel, Eko Stahl, factories set up in Germany and Acerinox, Bamesa and Namasco. Mexico. The company’s new headquarters and facilities were Engineering and Consulting also inaugurated in Aretxabaleta. moderated its rates of growth with a 12% increase over the previous As far as new product development year. This was a good figure was concerned, a new approach compared to the sector as a whole was adopted and “Koniker” was in what was a difficult year. In millions of euros set up as a specialist research 2001 2002 centre. It is located in the Garaia In organisational terms, significant Innovation Park and will provide changes took place with a number Sales 313 292 services in the stamping, assembly of business units transferred International sales 138 156 and casting sectors. between the companies in the

25 MACHINE TOOLS

n a complicated year, with a Overbeck is located in Herborn between the two companies, I significant fall in activity in close to Frankfurt and is engaged which have totally complementary the machine tool sector, the overall in the manufacture of cylindrical product lines. turnover of the Division increased grinders, specialising in interior by 15%, with a considerable 27% grinding. The company offers Woodwork Machinery, increase in international sales. products complementary to those Tooling and Fixtures had a of Danobat. The takeover will help difficult year. The turnover Machine Tools recorded an 18% to promote the brand image of the recorded was slightly up on the increase in turnover, in contrast to Group in a key market like the previous year, profitability was an average fall of 8% in the sector modest and there was a 6% fall in in Spain. However, the orders, so the prospects for 2003 performance of orders was clearly are not too favourable either. negative, with a 23% drop for the year as a whole and the order Among the more positive aspects, books standing at just above 50 Egurko, Ortza and Doiki worked million euros at the end of the year. together to increase their global This was 30 million less than in purchasing via Rumania. Doiki 2001 and confirmed the downturn performed well in the sale of initiated in September of that year. systems to control the quality of parts. Latz did well in terms of their In addition to the order books being hard metal sales and Zubiola at a low level, a climate of posted acceptable results taking uncertainty also prevailed, with little the problems of the sector into or no investment, especially in the account.
automotive sector. This, together with an increasing fall in margins Danobat due to the effect of inflation and the Antonio Echeverría MCC Vice-president gradual revaluation of the euro Chief Executive - Machine Tools Division against the dollar and the yen, German one, by providing meant the loss of competitiveness greater access to the German compared to the leading European decision-making centres and their manufacturers in Germany and area of influence in Eastern France, as well as Japanese Europe. Internally, it will provide manufacturers. synergies in purchasing, customer service, R&D and the commercial In terms of orders won, in 2002 range. the main markets for the Danobat Group were: Italy (22%) which The agreement between Goiti and led the ranking for the first time, Prima Industrie covers the joint followed by Germany (14%), development of a combined laser France (12%), China (9%) and and punching machine, which will United States (7%). Internationally, be sold all over the world through there were two events that stood the Danobat Goiti network with

out for their strategic importance: the support of Prima Industrie’s In millions of euros the takeover of the German marketing organisation. The 2001 2002 company Overbeck by Danobat Italian firm is a leader in high and the technology agreement technology laser systems for Sales 164 189

signed by Goiti with the Italian industrial applications. The aim is International sales 103 131 firm Prima Industrie. to achieve long-term collaboration

26 DistributionDistribution GroupGroup

27 Distribution Group

002 did not see the recovery 2 forecast in the economic cycle. In fact from the spring onwards there was a slowdown that affected consumer spending, although the positive performance of employment prevented a sharper fall.

As regards regulations, restrictions on the opening of new stores in most of the Autonomous Communities continued to be applied.

In the distribution sector, an unstoppable amount of concen- tration has taken place in recent years all over the world, but Eroski especially in Europe. Companies have therefore continued to focus their efforts on establishing of the hypermarkets last year, with awareness campaign entitled agreements and alliances of all new features incorporated together “Recycle your Habits”. types, to be more competitive in with new product ranges. the market and in relation to Profitability. In order to suppliers. Mention should be made of the improve in organisational terms ISO 9001:2000 certification and increase profitability, in In this context, the following were awarded to Viajes Eroski by 2002 a lot of effort was focused the most important milestones in the AENOR, both for holidays and on homogenising and integrating Distribution Group’s compliance business trips. The Eroski Group’s the functional systems, bearing in with the Basic Corporate General Goods Depot was mind the complexity of the Objectives: awarded the Silver Q prize, after Group. A number of cost having achieved more than 400 reductions were achieved, which Customer Satisfaction. Among points in an assessment based on will certainly be increased in the the new sales initiatives the EFQM management model. future. undertaken by this Group in 2002 mention should be made of Consumer information has The incursion made into new the sale at the larger stores of always been an objective of the business segments like the sale of cars of many different makes activities of the Eroski Group. In cars, the offer of financial together with products associated 2002, the Consumer magazine products and the sale of glasses with the purchase of a vehicle continued to be published on a and contact lenses as well as the (valuation, financing, insurance, monthly basis, with a circulation opening of new petrol stations, etc.). Other products were also of 370,000 free copies. The shops specialising in sport and developed like Ociofacil, to buy magazine is also available in leisure, and perfume stores, has holidays automatically on a self- four languages on the Internet. led to diversification and the service basis, Shopper 24 hours, Two specialist guides were also achievement of higher sales the extension of the range of published. One on food safety margins than those normally financial services, tele-shopping and the other dealing with pets. obtained with food products. and the customer service phone line. Consumer education schools However, advances also were also set up at the sales continued to be made in the Work also continued on the process outlets. The school dealing with Group’s traditional business, with of refurbishing supermarkets and information about the educational significant investment in new self-service outlets, whilst the search characteristics of toys stands out outlets and an 11% increase in for new solutions was the main task together with the environmental total annual profits.

28 Internationalisation. Although Earth. The Eroski Group has also Total sales it mainly operates in Spain, the signed the United Nations Global In millions of euros Distribution Group also operates Compact to promote fundamental 3 hypermarkets and a chain of 19 values in the fields of human 5,182 4,631 supermarkets in France through its rights, labour regulations and the subsidiary Sofides. environment. 3,895

In 2002, the most important Among the supportive actions aspect in international terms was promoted by the Foundation, the II the alliance agreement signed Fairtrade Fortnight stands out. with the French group Les Funding was also provided for a Mosquetaires (Intermarché). This number of international co- will provide an opportunity to operation projects, with economic improve purchasing capacity and support for projects in developing 2000 2001 2002 opens up the possibility of countries. Among the 100 NGOs extending collaboration on an applying for funds, the Eroski international scale in the long- Group Foundation provided term. funding for the projects presented by the Vicente Ferrer Foundation, Development. In line with its the Inter Red Foundation and strategy for expansion, the Eroski Setem Catalonia. Investment Group also continued to invest in In millions of euros 2002, with a total net investment A collaboration agreement was of 274 million euros, with gross also signed with the Spanish investment accounting for double federation of Municipalities for 563 this amount before discounting the collaboration in the promotion of 416 274 disinvestment. The investment was public health in the municipal earmarked for the expansion of environment, within the framework the store chain, in all its formats, of the Spanish Network of Healthy with 193 new stores, of which 7 Cities, in line with the content and were new hypermarkets. This principles of the WHO’s Healthy increase in the number of stores Cities project.
led to the creation of 1,878 new 2000 2001 2002 jobs. Constan Dacosta MCC Vice-president To finance this investment process Chief Executive - Distribution Group in which the Group is immersed, in 2002 an issue of Subordinate Financial Contributions was launched, which were very Workforce successful with investors. A number of non-strategic assets were also disposed off, freeing 32,036 financial resources for use in the 30,158 expansion process. 25,008

Social Responsibility. In 2002, the Eroski Group Foundation signed or renewed collaboration agreements with the following NGOs and social bodies: Intermon-Oxfam, Red Cross, Unicef, Doctors Beyond 2000 2001 2002 Frontiers, Acnur and Friends of the

29 EROSKI GROUP

002 was a year of important 2 business decisions for the Eroski Group. Among these the following stand out for their unquestionable importance in the future: the success on the capital markets of the “Eroski Subordinate Financial Contributions” and the alliance (ALIDIS) set up with the French group Les Mosquetaires- Intermarché, the second most important retail group in France.

The applications for the “Eroski Contributions” were double the 60 million euros issued initially. It was therefore necessary to use the pro rata system to finally establish the amounts contracted by investors. Eroski The final figure for the first issue was 90 million euros. These contributions are an instrument product ranges, the start up of a which 13,079 are worker-owners. offering access to the open joint import structure outside the As far as new business is investment market and an European Union, the joint use of concerned, the Eroski Group audacious innovation for a group logistics platforms, the exchange opened the first outlet for the sale like ours, which is essentially of experiences, and Intermarché of cars at its Bilbondo Shopping collective and private in terms of taking advantage of the Eroski Centre facilities under the its equity structure. In short, they Group’s Purchasing Centre in MultiAuto name. This outlet will have increased the economic Spain. The project is open to other sell cars of many different makes resources available for the operators with similar values and together with associated products expansion strategy we are objectives, characterised by their like financing, vehicle valuation, committed to, provided us with autonomy in terms of companies insurance, etc. The Group’s more soundness and a greater with stock market capital and the Financial Product Outlets in autonomous capacity for growth. involvement of people in company Madrid, Bilbao, Abadiño and management. Pamplona extended their offer to The alliance with Les Mosquetaires include savings products, both led to the set up of a company on The total sales of the two groups current accounts and term a 50-50 basis, with a unique were in excess of 41,500 million deposits, to complete the offer that structure for the joint purchasing euros in 2002, placing them in previously had focused on of basis products in Spain and in third place in the European retail personal and mortgage loans. the international markets. The ranking. Les Mosquetaires consists company, presided over by the of 2,700 independent managers Special mention should be made Eroski Group, has its headquarters and 112,00 workers, and of the consolidation of the in Geneva. operates in eight European perfume store project, with the countries. The Eroski Group takeover of the Nivel 10 chain The agreement also covers the operates in Spain and the south of from Alicante, which is well joint development of own-brand France, has 29,013 workers, of established in south-east Spain

30 and the takeover of the Dyper As in previous years, social con- In the environmental field, the first chain from Aragon in early 2003. cerns continued to have a specific Environmental Report was drawn The project now has 131 perfume weight in the Group’s activities: up, in accordance with the stores and a team of 800 people For the second consecutive year, Group’s extensive experience in and is the leading group in the more than fifty Spanish NGOs rat- making consumers more environ- sector with one hundred percent ed the Eroski Group as the most mentally aware. An information Spanish capital. supportive company thanks to its campaign was run to promote this programmes in favour of the inte- awareness under the title “Recycle As far as quality is concerned, the gration of the underprivileged. your habits” together with an Silver Q for Management Also for the second consecutive information campaign on organic Excellence was awarded to the year, the Group was recognised products.
Group’s General Goods Depot in as the best perceived Spanish Elorrio. The depot scored more company for its social actions, than 400 points in an EFQM according to a ranking prepared assessment carried out by experts by the Fundación Empresa y from different companies and co- Sociedad. ordinated by Euskalit, the Basque Foundation for the Promotion of These social actions were organ- Quality Management. The award ised by the Eroski Group Founda- recognises the participation and tion, which has more than teamwork of the Centre’s 400 516,000 members all over Spain, worker-owners, continuous improve- and had 528,000 people partici- ment in processes, collaboration pating in the activities organised. with suppliers and respect for the Among these the following stand environment. out: the selection of and financial support for three international co- operation projects for develop- ment; the signing of the United Nations Global Compact; the organisation of the II Fairtrade Fortnight at Eroski hypermarkets all over Spain; the XII National Food Collection Campaign for needy families organised in col- laboration with the Spanish Food Bank; the campaign run with Unicef to promote schooling in Bolivia; the participation, together with the NGO Entreculturas, in the world education information cam- paign; the collaboration agree- ment signed with Doctors beyond Frontiers to support initiatives based on solidarity and, finally, the scientific research grants offered to higher university gradu- ates.

31 ERKOP

Residential Homes for the Elderly. Its aim is to offer all the social and health care services required by the elderly, with the maximum level of professionalism and quality.

Internally, Basic Units for Health at Work were set up and the level of satisfaction of all the people working in the cluster’s co- operatives was assessed. There were significant advances in both areas.

Auzo Lagun

his Agricultural-Food cluster up of Multifood S. Coop, for the T recorded a 23% increase in production of ready-prepared turnover in 2002, confirming its food. positive performance over the last few years. In terms of new activities, mention should be made of the creation of The most important events during GSR (Gestión de Servicios the year were the inauguration of Residenciales S. Coop.), a Miba’s new production plant for business project promoted by the animal feeds in Etxebarria in the MCC and Auzo Lagun, aimed at province of Bizkaia and the start the integrated management of

32 Research, Training and Education

33 Research

IKERLAN

his Technology Centre, T specialising in integrated product development, obtained income totalling 13.7 million euros in 2002, of which 8.3 million euros came from R&D projects contracted with companies and 4.4 million from generic and strategic research projects. The average workforce over the year was 181 researchers and engineers, in addition to 41 scholarship holders, grouped into the following operational areas: Product Development, Design and Production Processes and Energy. Ikerlan

The extension and remodelling work on the Mondragón facilities was completed on schedule at a As part of the Science and far as technologies for the cost of 5.2 million euros. The Technology Plan organised by Information Society are concerned, work included the building of a the MCC, Ikerlan is participating in terms of wireless technology, clean room for the microsystems in seven projects, among which activity. Funding included aid those dealing with wireless Ikerlan also participated in the from the European regional technologies, microsystems and creation of CIDAE, Active Development Fund (ERDF) and fuel cells stand out. At the Distribution and Electrotechnology the MCC Foundation, in which European level, a lot of effort Research Centre, as a University Caja Laboral is the main was put into establishing the Research Institute, together with the collaborating body. centre’s concerning the European University of Mondragón, the Union’s VI Framework Programme Labein Foundation, the MCC on technological research and Engineering and Consulting and development. Systems and Services Clusters, Cegasa and the Ormazabal In this regard, mention should be Group.
made of the European Commission’s Aware Project, in which Ikerlan is participating together with the MCC and other bodies from the Basque Country, North Rhine-Westphalia in Germany, Tempere in Finland and Norway. Its aim is to design a joint R&D plan for wireless technologies, in application of article 169 of the European Regions, covering the strengthening the European Research Area as

34 IDEKO High Performance Manufacturing, research into new technologies which co-ordinates the work of the applicable to its area of work. In deko, a Technology Centre Basque Science and Technology 2002, MTC ended the year with specialising in Machine Network in this field. In Spain, the income totalling 6 million euros I Spanish Network of Excellence on and a workforce of 103 people, Tools, continued to promote innovation in the sector, by High Performance Machining and mainly senior engineers and carrying out joint projects and in Europe, the establishment of the technicians. The centre also had consolidating multi-disciplinary European Network of Excellence 19 scholarship holders.
teams. Internationally, the centre in Machining for the VI Framework collaborated with recognised Programme. centres of excellence like WZL in MIK Aachen or CRF in Turin, in In 2002, Ideko posted an income of 4.7 million euros, of which technologies with a high impact 002 was the first year of 64% corresponded to contracted on the environment, with the operation for this Business research projects and the 2 integrated control of machining and Organisational Management remainder to strategic and pre- processes and systems and Research Centre. The centre competitive research projects. ecological machining processes ended the year with a staff of nine These targets were met thanks to standing out. On the academic people and an income of the work and effort of 92 side, four new doctoral theses 544,000 euros. The plans are to researchers and 20 scholarship were launched together with double both these figures in holders.
several projects with the 2003. University of Mondragón, the Bilbao Engineering School and The most important events during the University of Navarra. the year were as follows: the MAIER TECHNOLOGY awarding by the Basque The most representative projects with Government of the Conex CENTRE (MTC) companies were: “Development and Programme, for strategic research implementation of an advanced in the business management field; monitoring system on a Soraluce SV aier Technology Centre and, at the European level, 6000 milling machine”, for the M (MTC), part of the Basque activities resulting in road maps demanding German market; Technology Network, specialises like Companion and Coconet, in “Development of a Danobat in the research and development “integrated projects” and grinding machine for broaches” of thermoplastic parts and units “networks of excellence”.
including software with direct for the automotive, domestic calculation, which is already being appliance, telephony and sold on the market; and consumer electronics sectors. It MODUTEK “Development of a system for works on the basis of concurrent measuring and automatically engineering, in close collabora- offsetting the bending angle” for a tion with its clients, consolidating odutek is engaged in the Goiti press brake, which is in the its position as a development M development of modules marketing phase. supplier, in line with the and systems, using modern CAD demanding requirements of the equipment. Its work combines the The centre also led four important sector. know-how of the MCC’s initiatives. Within the MCC, the Technology Centres, the resources “High Performance Transformation Its activities include research; of the University of Mondragón and “Design of Robust and design, simulation and styling and the industrial experience of Reliable Products” projects. In the processes; development and the MCC’s Automotive Division. Basque Autonomous Community, manufacture of injection moulds; Batz, Cikautxo, Maier and the the Aefar project dealing with industrialisation of parts and MCC Foundation are all partners

35 in the project, which had a staff of AOTEK GARAIA 30 people at the end of 2002. INNOVATION PARK With the start up of a number of romoted by Fagor projects related to different areas Automation, this Technology he aim of this ambitious in the automotive sector, the P Centre specialising in Automation project is to create an area centre is consolidating its T and Optics, aims to satisfy the of excellence for innovation and activities with clients and shaping demands for increases in technology, combining the efforts its future strategy, in line with that productivity required of modern of the University, the company of the Automotive Division.
manufacturing processes –faster, technology centres set up and more precise and more flexible companies themselves. At the end machines-, using automation and of 2002, nearly all the land had ORONA eic control technologies and applying been purchased (430,000 m2). optical technology to very high The plans are for the building ithin the framework of its precision and resolution measuring work to start in the middle of W new business project, elements. 2003. and in line with the strategic importance given to innovation, The main aim of Aotek is to Meanwhile, in the new Garaia Orona decided to include a achieve a higher technological campus area, MIK, the Corporate Technological Inno- level, by means of researchers Management Research Centre, vation Area in its new specialising in pre-competitive started its activities in 2002 and organisation. The aim was to development and the search for another two company centres ensure competitive products and technology. At the end of 2002, were set up: Edertek, the technologies for the Group in a the centre had 25 highly qualified Advanced Materials Centre, led highly concentrated market, researchers, with plans to double by Fagor Ederlan, and Koniker, dominated by the multinationals. this figure in two years.
the Forming Centre led by Fagor In 2002, a new short-term R&D Arrasate. A number of university unit was set up together with a research laboratories, belonging new advanced unit, Orona eic to the University of Mondragón, (Elevator Innovation Centre), for also carried out their activities. In technological research and total, by the end of the year, 70 product development in the people were working at the Elevator sector. Garaia Innovation Park.

Set up as a Service Co-operative, Orona eic has Ikerlan and the University of Mondragón as its partners, with whom a multi- annual agreement has been signed. It has also joined the Basque Network of Science and Technology, and aims to employ 45 engineers and technicians by the end of 2003.

36 Training and Education

UNIVERSITY OF MONDRAGON

n 2002, the University of I Mondragón continued to make advances in its consolidation and development strategy characterised mainly by its new educational model, local development and a new university campus concept.

Its educational model, in the shape of the Mendeberri Project, has meant a re-engineering of the teaching-learning process. In addition to technical skills, it aims to University of Mondragón develop competencies and values for the integrated training and education of the individual. It is also a multi-lingual model, focusing on Technical Engineering course Centres such as Ideko, Ikerlan and the new information and specialising in Polymers in Inasmet. Joint activities are carried communications technologies. The Markina and a Degree in Business out in Machine Tools, Casting first three pilot experiences were Administration and Management Processes, Electronic Control and started with three degree courses in in Elgoibar. Power Electronics, Information academic year 2002/2003. Systems, Design and Mechanical The model has also developed a Engineering, and key processes are Local development consists of a new university campus concept that innovated in companies for the system of relations which, taking is open and interrelated with design and industrialisation of the educational system as the companies and integrated in products and production processes. focal point, aims to involve local society. This has led to the University companies and institutions, of Mondragón’s direct involvement There was also collaboration with ensuring access for all social in the creation of the Garaia companies that are strongly levels, the combination of study Innovation Park, by contributing to committed to innovation: with and work, the development of the “generation of knowledge” by Fagor Arrasate to set up the Research and In-service Training, getting the University, companies Koniker Forming Centre; with and have an effect on promotion and Research Centres to work Orona to consolidate its EIC and development in the area. together. In this regard, mention Centre; with Ulma Packaging for should be made of the setting up of collaboration in the development On the basis of this focus, the new the Cidae Research Institute in of its R&D Centre and with the Higher Polytechnic School which Ikerlan and Labein are taking CHP Grouping to channel campus in Ordizia was set up, as part as technological partners, innovation requirements through a result of an agreement signed together with a number of Edertek. with the Goierri Goi Maila Eskola. companies from the electrical sector Agreements were also signed with and the MCC. All this, together with the increase Lea Artibai Ikastetxea and Gestio in the number of degree courses Eskola to start in academic year Collaboration is now well offered, with two new ones started 2002/2003 a Mechanical established with Technology in academic year 2001/02 in

37 Telecommunications Engineering OTHER EDUCATION Foundation and regulated –Telematics and Telecommunication AND TRAINING CENTRES everything related to R&D Systems-, and the Management activities, Company Projects and Secretary course initiated in Technical Services. It also uring the academic year September 2002, meant that the approved its new organisational 2001-2002, the Politek- number of students increased again. D model, which will serve as the nika Ikastegia Txorierri had The total number went from 3,375 framework for the development of 380 students within the state in academic year 2001/02 to teaching activities over the next system. 34 vocational and in- 3,563 in 2002/03, not including few years. service training courses were the postgraduate students. The total increase was 6%. CIM (Centro de Idiomas Mondragón) met the demand for There was also an increase in the language learning for 3,368 number of postgraduate courses students: 1,263 as part of the offered. New masters and activities of its Academic Division, university expert courses were set 955 through its Business Division, up in science-technology, mana- 600 at the Bai&By Centre in gement, industrial management, Vitoria and 550 at Bai&By in San humanities applied to business Sebastian. and education. 23 courses were offered during academic year In 2002 Arizmendi culminated 2002/03. the merger process involving its four co-operatives, which will be Finally, as far as research and endorsed at the start of 2003. In internationalisation projects are the new technology area, the concerned, with more and more number of classrooms on line was students taking part in academic increased and training plans exchange programmes, these were established to master the continue to be two of the basic ICTs. At the European level, elements in the development of given, attended by 413 people. Arinsup was set up. This is an the University.
In the area of the new Economic Interest Grouping set technologies two training courses up with the Insup Institute from via the Internet were designed Aquitaine, to carry out an Interreg and a number of Extranet services III joint collaboration project for were established to improve the configuration of an access to job offers and training educational server and the courses for companies. In the training of personnel and international area, fourteen companies in the methodology students went to work in involved in its use.
companies in England, France and Northern Ireland, as part of the European Leonardo Programme.

Lea Artibai Ikastetxea signed an agreement with the University of Mondragón to start first level Mechanical Engineering courses specialising in Polymers. The school also legalised the Azaro

38 MANAGEMENT In the field of Co-operative MONE, the Mondragón Business TRAINING Training, two “Ikas” postgraduate School, engaged in management courses were given for 32 training and development, was postgraduates who had recently set up in 2002 by the University or the first time in 2002, joined the co-operatives. Work of Mondragón, LKS and the Otalora, the Co-operative F continued on the application of the MCC. It offers the following: and Business Training Centre ran a “Ordezkari XXI” Social Body Masters and advanced courses, Conversational Skills Development Development System for Governing Company Training and Programme in its Management Councils, used by 99 council Management Development, on Development Unit. 15 co-operative members and 10 seminars were the basis of courses and seminars. managers took part over the 9 given for Social Council members. months or 2,400 hours that the As for the “Bazkide XXI“ model for Among the activities carried out programme lasted. A High new co-operative members, it was during its first year, the following Performance Team Development applied in 36 Co-operatives and stand out: the organisation of an Programme was also organised for had 1,383 participants. Advanced Leadership Course for Fagor Ederlan, with the the Confederation of Farming Co- participation of 70 people. The In terms of Internal operatives, held in Madrid and duration was 5,600 hours. Communication, the T.U. Lankide organised by LKS; the start up of magazine continued to be its star MBA-Executive programme, As in previous years, the 16th published on a monthly basis. In given at the school’s facilities in edition of the Masters in Co- the area of Sociological Studies, Oñati; the expert course in operative Enterprise Management the People Satisfaction survey project Management given by the was held with 19 participants and continued to be applied in the Co- University of Mondragón’s Higher the academic backing of the operatives. As far as Co-operative Polytechnic School and a special Business Science Faculty of the dissemination is concerned, course on Banking and the Stock University of Mondragón. The information continued to be given Exchange given by the University duration of the course was 510 about the Co-operative Experience, of Mondragón’s Business Science hours. An Advanced Distribution with 1,050 people from all over Faculty.
Company Management course the world visiting Otalora to find was also held for 16 people, with out about the Mondragón Co- a duration of 200 hours. operative Movement in situ.

39

FinancialFinancial StatementsStatements andand TradingTrading AccountAccount OrganisationalOrganisational StructureStructure CompanyCompany andand ManagementManagement BodiesBodies

41 MCC Financial Statements and Trading Account as at 31-12-02

his part of the Annual Report offers an overall view To obtain these integrated statements, balances reflecting T of the Mondragón Corporación Cooperativa, by operations between the Financial, Industrial and presenting the Corporation’s financial statements and Distribution Groups have been offset, and internal trading account for the end of 2002. Likewise, a economic movements have been removed, in order to comparison of these figures with those for the previous delimit the actual situation of MCC as far as its outward year shows year-on-year developments. appearance is concerned.

The information given refers to the integrated Balance Sheets for companies that make up the Corporation, as well as the composition of Value Added generated by them over the last two years.

BALANCE SHEET

MCC's Balance Sheet at 31.12.02 showed a total volume 8.5% in percentage terms. The incorporation of Ampo, of assets under administration of 15,337 million euros, an Ecenarro and the Ulma Group last year contributed to the increase of 1,200 million euros over the year, which is increase.

Balance Sheet of Mondragón Corporación Cooperativa (After Distribution of Net Surplus) (millions of euros)

31.12.01 31.12.02 Annual Variation HEADING Amount % distr. Amount % distr. Amount %

Assets Fixed 3,466 24.5 3,772 24.6 306 8.8 Current 10,671 75.5 11,565 75.4 894 8.4 Total Assets 14,137 100.0 15,337 100.0 1,200 8.5

Liabilities Equity 2,688 19.0 3,102 20.2 414 15.4 External Partners 159 1.1 128 0.8 -31 -19.5 Long term creditors 1,728 12.3 2,182 14.3 454 26.3 Short term creditors 9,562 67.6 9,925 64.7 363 3.8 Total Liabilities 14,137 100.0 15,337 100.0 1,200 8.5

The Group that contributed most to this growth was the clients by the financial institution. Financial Group, whose balance, after the adjustments made The most outstanding features of each heading of the balance to consolidate the asset and liability balances of the co- sheet of the Mondragón Corporación Cooperativa as at operatives in Caja Laboral, increased by 641 million euros, 31.12.02 are detailed below: due to the increase in savings attracted and loans granted to

42 Fixed Assets The most significant contribution to the aforementioned increase came from the Industrial Group, which At the end of 2002, the MCC's fixed assets totalled 3,772 increased its consolidated equity by 269 million euros, million euros, after having increased by 306 million euros 65% of the MCC total. This was due to the profits made (8.8%) during the year. over the year and the incorporation of new co-operative Total net investment made during the year accounted for members. 683 million euros, which was 22% lower than the previous year, due to the disinvestment that has taken place in the External Partners Distribution Group. Depreciations applied in 2002 rose to In the last few years the MCC has combined internal 377 million euros, which is 23% more than the figure growth with the development of new companies in recorded in 2001. collaboration with external partners, both on the domestic

Current Assets market and on the international market. This has led to a gradual increase in the participation of external partners The current assets heading is the largest element of the in joint ventures. net worth of the Corporation and the one that grew the most last year in absolute terms (894 million euros), which The capital holdings of these external partners are was 8.4% in relative terms. mainly to be found in companies included in the consolidated statements of the industrial co-operatives 71% of this increase came from the Financial Group, and and the distribution sector. The total for external partners was mainly due to Caja Laboral’s bank investment, with accounted for 128 million euros at 31.12.02, a fall of 19% the loans granted to clients heading having increased the over the year. most, with a rise of 829 million euros, mainly in the mortgage loan area. Long-term liabilities

In terms of growth, this Group was followed by the The balance of MCC funding from third parties with a Industrial Group, which recorded an annual increase of period of maturity of more than one year underwent 335 million euros, due to an increase in turnover and the growth of 454 million euros (26%) in 2002, to total 2,182 incorporation of the co-operatives mentioned above. million euros at the end of the year.

On the other hand, the Distribution Group saw its current The leading role in this increase was played by the assets fall by 76 million euros, as a result of the greater Financial Group, which was responsible for 75% of the acceleration achieved in stock management and debtor increase. This was due to the considerable increase in accounts. Caja Laboral’s term deposits, in a context of falling interest rates and an increase in the aversion to risk on Equity the part of savers, as a result of the persistently poor The MCC's Equity totalled 3,102 million euros at the end of performance of variable income securities. the year, with Share Capital accounting for1,553 million euros and Reserves for the remaining 1,549 million euros. Short-term liabilities

During the year Equity was considerably strengthened, This balance sheet heading increased moderately by 363 with an increase of 414 million euros (15.4%). This increase million euros (3.8%) during 2002. In the Financial Group, was due to the profitability for the year, together with the the preference of savers for long-term deposits limited demanding policy for capitalisation of surplus, which is the increase in sight accounts and short-term deposits. In mainly reinvested to self-finance development, and the the Industrial Group, there was a 17% increase in short- issue of the subordinate financial contributions by the term liabilities, in line with the expansion in turnover, Eroski Group, which accounted for 90 million euros. bearing in mind the incorporation of the new companies.

43 In the Distribution Group, short-term liabilities fell by came to 2,136 million euros at the end of 2002, which is 4.3%, as resources were obtained through other 2.8% higher than in 2001. channels, mainly through disinvestment and the issue of the subordinate financial contributions. VALUE ADDED

It should also be mentioned that, in addition to traditional To complete this commentary on the MCC's Balance savings, Caja Laboral registered an increase in the Sheet, the following table is offered in which a amount of savings from third parties channelled through comparison is made of the financial statements for the off-balance sheet savings schemes, mainly unit trusts and last two years, after being structured on the basis of the pension and welfare plans. The balance of these schemes composition of Value Added.

Value added generated by Mondragón Corporación Cooperativa (millions of euros)

2001 2002 Annual Variation HEADING Amount % distr. Amount % distr. Amount %.

Value Added 2,089 100.0 2,421 100.0 332 15.9 Personnel costs (1,222) (58.5) (1,413) (58.4) 191 15.6 Internal Yield 867 41.5 1,008 41.6 141 16.3 Financial Costs (256) (12.2) (251) (10.3) (5) (2.0) Cash flow 611 29.3 757 31.3 146 23.9 Depreciations (307) (14.7) (377) (15.6) 70 22.8 Operating Profit 304 14.6 380 15.7 76 25.0 Transfers and other income 31 1.5 (10) (0.4) (41) (132.3)

Surplus on year 335 16.1 370 15.3 35 10.4

The overall Value Added generated by the MCC in 2002 Financial Costs accounted for 251 million euros, which increased by 15.9% to total 2,421 million euros. was slightly lower than in 2001, as a result of the

The biggest part of this Value Added was generated by improvement in the financial structure of the Industrial the Industrial Group, which with 1,236 million euros and Distribution Groups and the downward trend in accounted for 51% of the total. It was followed by the interest rates. Distribution Group with 32%, with the remaining 17% The depreciations applied by the MCC in 2002 totalled corresponding to the Financial Group. 377 million euros, with year-on-year growth of 23%, as a Personnel Costs rose by 15.6%, due to the considerable result of the high level of investment. The Industrial Group amount of job creation in the MCC. Wages accounted for accounts for the most depreciations (190 million euros, 58.4% of the Value Added generated, which was a tenth 50% of the total), followed very closely by the of a point lower than the previous year. Distribution Group (169 million euros, 45% of the total).

44 After all the expenses have been deducted, a Trading Therefore, the Final Surplus on the year totalled 370 Profit of 380 million euros was achieved, which was 25% million euros, which is an increase of 10.4% compared to higher than in 2001. the figure recorded in 2001.

Non-trading income consists mainly of transfers to The following table briefly summarises how this Surplus provisions, profits attributable to external partners and has been distributed, compared with 2001. extraordinary results. The figure for 2002 came to -10 million euros, compared to 31 million euros in 2001.

Distribution of Mondragón Corporación Cooperativa Surplus (in millions of euros)

31.12.01 31.12.02 HEADING Amount % distr. Amount % distr.

Company Tax 28 8.4 20 5.4 Education and Coop. Prom. Fund 27 8.0 38 10.3 Interest on Cap. Contr. and Monet. Divds. 75 22.4 101 27.3 Capitalised Profit 205 61.2 211 57.0 Total Surplus on Year 335 100.0 370 100.0

The first three headings in the table refer to external payments. The last one covers the significant capitalisation of the remaining Surplus, in the form of co-operative dividends or reserve funds.

45 Organisational CONGRESS Structure Presidency General Council

INDUSTRIAL GROUP FINANCIAL DISTRIBUTION Automotive GROUP GROUP Components

Construction

Industrial Equipment

Household Goods

Engineering and Capital Goods

Machine Tools

Research, Training and Education Centres

Social and Management Bodies

STANDING COMMITTEE OF THE CONGRESS GENERAL COUNCIL

President: Otaegui, Juan Mª President: Catania, Jesús

Vice-president: Salegui, Francisco Vice-president: Aldekoa, José Mª Dacosta, Constan Members: Alústiza, José Antonio Echeverría, Antonio Alvarez, Santiago Goikoetxea, J.Ramón Andrés, José Luis Gómez-Acedo, Fernando Ansoategui, Juan José Maiztegui, Jesús Arrieta, Juan José Olasolo, José Luis Esnal, Jokin Otaegui, Juan Mª Gantxegi, Javier Otaño, Iñaki García, Javier Garnica, Agustín Officers: Gárate, José Ignacio Gaztañaga, J. Domingo Gisasola, José Mª Herrera, Miguel Herrasti, Jesús Mª Larramendi, José Mª Madinagoitia, José Luis Laspiur, Miguel Angel Markaide, Agustín Uzkudun, Juan Mª Trancho Alberto Villaescusa,Emilio General Secretary: Celaya, Adrián

General Secretary: Celaya, Adrián

46 General Council

José Mª Aldekoa Fernando Gómez-Acedo Constan Dacosta

Jesús Maiztegui José Luis OlasoloAntonio Echeverría Iñaki Otaño

J.Ramón Goikoetxea José Mª Gisasola Jesús Mª Herrasti Miguel Angel Laspiur

Adrián Celaya José Ignacio Gárate Juan Mª Uzkudun

Juan Mª Otaegui Jesús Catania President President of the Congress of the General Council

47 List of MCC Companies

FAGOR EDERLAN AUTOMODULOS DO BRASIL Parque Tecnológico, Rodovia Fernao Dias, Ed. 103 Km. 887 48170 Zamudio Bairro Ponte Alta (Bizkaia) CEP 37640-000 Tel.: 34 944 209 370 EXTREMA-MG-BRASIL Fax: 34 944 209 369 Tel.: 55 35 34355909 Batz Systems and Fagor Fagor Ederlan and MCC Ederlan have a holding Inversiones have a 100% Activities: holding Financial Group Industrial Group Complete axles for cars. Activities: Machining of automotive AUTOMODULOS Banking SEGUROS PARANOA parts. ARAGON ARO LEASING LAGUN ARO Ind. BORRACHA- Polígono Barbablanca Capuchinos de Basurto 6-2º CIKAUTXO FAGOR FUNDIÇAO 50540 Borja C/ Gran Vía 35-6º 48013 Bilbao Av. Casa Grande, 1.731 BRASILEIRA (Zaragoza) 48009 Bilbao (Bizkaia) Piraporinha CEP 09961- Rodavia Fernao Dias Tel.: 976 866 077 (Bizkaia) AUTOMOTIVE Tel.: 34 944 798 300 902 Diadema-SP-(Brasil) Km. 887 Cx. postal 15 Fax: 976 866 078 Tel.: 34 944 244 350 Fax: 34 944 798 383 Tel. 55 11 40666533 Bairro Ponte Alta E-mail: Fax: 34 944 236 669 www.seguroslagunaro.com BATZ SISTEMAS Fax 55 11 40666182 CEP 37640-000 [email protected] Activities: Bº Torrea 32-34 E-mail: EXTREMA-MG-BRASIL Activities: Activities: Financial leasing of capital 48140 Igorre (Bizkaia) [email protected] Tel.: 55 35 34358200 General Insurance. Assembly of automotive equipment. Fax: 55 35 34358248 Tel.: 34 946 305 000 Cikautxo has a 14% components. Fax: 34 946 305 020 holding, MCC Inversiones Fagor Ederlan and MCC CAJA LABORAL E-mail: [email protected] a 7% holding and Inversiones have a Social Welfare FIT AUTOMOCION Promoauto a 14% holding Pº José Mª Activities: Barrio San Juan, s/n LAGUN ARO holding. Arizmendiarrieta s/n Assemblies. Activities: Apdo. 80 20500 Mondragón Pº José Mª Bodywork assembly. Activities: Casting of automotive parts 20570 Bergara (Gipuzkoa) Arizmendiarrieta s/n Hand brake levers. Rubber processing. and components. (Gipuzkoa) Tel.: 34 943 719 500 20500 Mondragón Jacks. Pedal units. Tel.: 34 943 769 044 Fax: 34 943 719 778 (Gipuzkoa) Rear axles. ECENARRO FAGOR EDERLAN Fax: 34 943 769 156 Servicio.de.Atencion.al. Tel.: 34 943 790 100 Amilaga Kalea, 15 BORJA MCC Inversiones and [email protected] Fax: 34 943 793 531 CIKAUTXO 20570 Bergara Pol. Barbalanca, s/n Fagor Ederlan have a www.cajalaboral.es E-mail: Bº Magdalena 2, B (Gipuzkoa) 50540 Borja 66% holding [email protected] (Zaragoza) Activities: 48710 Berriatua Tel. 34 943 769 235 Actividad: Tel.: 34 976 869620 Banking. Activities: (Bizkaia) Fax 34 943 765 637 Manufacture of brake calipers. Tel.: 34 946 137 000 Fax: 34 976 869642 Social welfare cover Activities: for co-operators. Fax: 34 946 137 040 E-mail: Screws, studs, ball joints FPK Insurance E-mail: a.lazaro@borja. and special parts. LAGUNARO- [email protected] fagorederlan.es Bº San Antolín, 16 LAGUN ARO MONDRAGON Fagor Ederlan has a 48170 Zamudio VIDA Activities: FAGOR EDERLAN (Bizkaia) Pº José Mª 100% holding Capuchinos de Basurto 6-2º Injection moulded and Gaztanadui, 42 Tel.: 34 944 523 605 Arizmendiarrieta s/n 48013 Bilbao overmoulded parts. 20540 Eskoriatza Activities: Fax: 34 944 522 156 20500 Mondragón (Bizkaia) Rubber mixes. (Gipuzkoa) Automotive assemblies. E-mail: [email protected] (Gipuzkoa) Tel.: 34 944 798 300 Tel.: 34 943 719 000 MCC Inversiones has a Tel.: 34 943 790 100 Fax: 34 944 798 383 CIKAUTXO CZ. Fax: 34 943 719 001 GALDAN 50% holding Fax: 34 943 793 531 www.seguroslagunaro.com Letni,3867 E-mail: [email protected] Pol. Ibarra, s/n Activities: Activities: PSC 46801 Alsasua, Navarra Activities: Activities: Plastic assembly supports. Joint workplace risk Jablone Nad Nisou Tel.: 34 948 563 675 Life insurance. Suspension arms. Knuckles. Engine covers. prevention service. República Checa Fagor Ederlan has a 50% Mechanism casings. Clutch Noise shields. Tel. 00 42 042 8302224 holding housings. Fax 00 42 042 8302239 Gearbox covers. Activities: E-mail: [email protected] Discs. Drums. Calipers. Aluminium die casting. Activities: Cylinder head covers Rubber parts. Differential gearboxes. Gearboxes.

48 LUZURIAGA MAIER NAVARRA MAPSA COPRECI MEXICO EIKA TAFALLA Polígono Ind. Elordi, s/n Ctra. Echauri, 11 C/Uno, nº 736 Z.I. Etxebarria Tafalla (Navarra) 31979 Iraizotz-Ultzama 31160 Orcoyen Guadalajara Apdo. 20 Tel.: 34 948 700 250 (Navarra) (Navarra) Jalisco-México 44940 E-48270 Markina Fax: 34 948 702 054 Tel.: 34 948 309 210 Apdo. 1002 Tel.: +52 33 3 145 1963 (Bizkaia) E-mail: Fax: 34 948 309 333 31080 Pamplona COMPONENTS Fax: +52 33 3 145 1056 Tel.: 34 946 167 732 [email protected] E-mail: Tel.: 34 948 325 011 E-mail: Fax: 34 946 167 746 [email protected] Fax: 34 948 325 323 [email protected] E-mail: [email protected] Activities: CONSONNI E-mail: www.eika.es Cylinder blocks and heads Activities: Bº Trobika, s/n Activities: [email protected] for engines. Plastic injection moulding. 48100 Munguía Valves for gas barbecues Activities: Activities: (Bizkaia) Apdo. 35 and cooking taps. Shielded heating elements. LUZURIAGA MAIER UK Manufacture of aluminium Tel.: 34 946 156 331 Electric hotplates. Heaters USURBIL Chaserwater Heaths wheel rims. Fax: 34 946 156 281 COPRECI and touch controls for glass C/ Txiki-Erdi Industrial Area Manufacture of water pump E-mail: consonni@ SYSTEMS, s.r.l. ceramic hobs. 20170 Usurbil Attwood Road housings. consonni-scoop.es Vía G. Galilei 12 (Gipuzkoa) Burntwood Low pressure and gravity Activities: 31010 Mareno di Piave CZEIKA Tel.: 34 943 370 200 West Midlands WS7 8GJ cast aluminium parts. Heating elements for (TV) Italia Prúmyslová, 3143/5 Fax: 34 943 365 564 (Reino Unido) washing appliances, water Tel.: +39 043 8492531 Prostejov (Rep. Checa) Tel.: 00 44 1543 277460 Fax: +39 043 8492559 Tel.: +420 508 360440 Activities: heaters, central heating Fax: 00 44 1543 278752 equipment, small domestic E-mail: Fax: +420 508 360400 Brake housings and E-mail: appliances and industrial [email protected] Eika has a 100% holding suspension arms. [email protected] use. Actividad: Activities: Maier has a 60% holding MAIER Gas rails and tubings. Hot plates for cookers. and MCC Inversiones a COPRECI Pol. Ind. Arabieta, s/n 40% holding Apdo. 103 Avda. de Alava, 3 COPRECI FOUNDEIK 48300 Gernika Activities: E-20550 Aretxabaleta VALENCIANA, S.A. Nádrazní, 50 Hlubocky- (Bizkaia) Plastic injection moulding (Gipuzkoa) Lepanto 6 Mariánské Üdolí 783 66 Tel.: 34 946 259 200 and finishing. Tel.: 34 943 71 94 99 E-46930 Quart de Poblet (Rep. Checa) Fax: 34 946 259 219 Fax: 34 943 79 23 49 (Valencia) Tel.: 00 420 685067560 E-mail: CHROMECO E-mail: Tel.: +34 96 1536165 Fax: 00 420 685067800 [email protected] Lichfield Road [email protected] Fax: +34 96 1536166 E-mail: Brownhills www.copreci.com E-mail: [email protected] Activities: West Midlands WS8 6LH [email protected] Eika has a 60% holding Plastic injection moulding. Activities: (Reino Unido) and MCC Inversiones has Die making. Taps and thermostats for gas Activities: Tel.: 00 44 1543 453333 a 40% holding Finishes: chrome-plating, cookers, ovens and hobs. Gas burners for cookers Fax: 00 44 1543 575402 screen-printing, heat Electrically operated pumps, and hobs. Activities: Maier has a 60% holding engraving, painting, laser, timers, pressure switches, Casting. and MCC Inversiones a etc. thermostats and electronic COPRECI CZ 40% holding controls for washing machines Komenského 274 EMBEGA and dishwashers. MAIER DO BRASIL Activities: 793 68 Dvorce u Pol. Industrial, s/n Transformers for microwave Estrada particular Plastic injection moulding Bruntálu Apdo. 63 ovens. Components for gas Eiji Kikuti, 300 and finishing. Czech Republic E-31200 Estella heaters. Thermostats for Bairro Cooperativa Tel.: 420 646 74 54 92 (Navarra) washing machines, convectors CEP 0985-2040 FERROPLAST Fax: 420 646 74 54 95 Tel.: 34 948 54 87 00 and electric ovens. Sao Bernardo do Campo- Polígono “A Granxa” E-mail: [email protected] Fax: 34 948 54 87 01 SP-Brasil Parcela 2, Rua 1 Actividad: E-mail: Tel.: 55 11 43556700 36400 Porriño COPRECI DO BRASIL Manufacture of taps and [email protected] Fax: 55 11 43556706 (Pontevedra) Avda. Eurico Ambrogi safety systems for domestic www.embega.com E-mail: Apdo. 6015 Santos 1900 A gas applications. [email protected] 36210 Vigo Distrito Industrial de Activities: Pressure switches and electric Maier has a 60% holding Tel.: 34 986 342 020 Piracangaguá Decorative metal trims. thermostats for washing and MCC Inversiones a Fax: 34 986 342 999 CEP: 12010-970 Printed gaskets. appliances. 40% holding E-mail: [email protected] Taubaté-SP-Brasil Membrane switches. Maier has a 51% holding Tel.: 55 12 2861573 Activities: Fax: 55 12 2861553 Plastic components. Activities: Thermoplastic injection Activities: moulding. Taps for gas cooking.

49 List of MCC Companies

FAGOR MANCHALAN ORKLI ECOTÈCNIA VENDAVAL ELECTRONICA Avda. Castilla la Ctra. Zaldibia Amistat, 23-1º PROMOCIONES Bº San Andres, s/n Mancha, 11 E-20240 Ordizia 08005 Barcelona EOLICAS Apdo. 33 E-19171 Cabanillas del (Gipuzkoa) Tel.: 34 932 257 600 Amistad, 23 20500 Mondragón Campo Tel.: 34 943 80 50 30 Fax: 34 932 210 939 08005 Barcelona (Gipuzkoa) (Guadalajara) Fax: 34 943 80 51 85 CONSTRUCTION E-mail: (Barcelona) Tel.: 34 943 71 25 26 Tel.: 34 949 337 525 E-mail: [email protected] [email protected] Tel.: 93 225 76 00 Fax: 34 943 71 28 93 Fax: 34 943 337 526 www.orkli.com Lifts and Fax: 93 221 09 39 E-mail: E-mail: elevators Actividad: E-mail: Activities: [email protected] [email protected] Design, manufacture and [email protected] Safety components, ORONA [email protected] maintenance of wind- www.ecotecnia.com Activities: Regulation and Control for www.fagorelectronica.com Pol. Ind. Lastaola powered generators and Ecotècnia has a 40% Assembly of units and sub- central heating systems, 20120 Hernani wind farms. holding and MCC Activities: units for the domestic domestic hot water and (Gipuzkoa) Inversiones has a 20 % Discrete semiconductors for appliance and automotive fluids. Thermoelectric safety Tel.: 34 943 551 400 ECOTÈCNIA holding axial and SMD surface sectors. Plastic injection systems for gas: domestic Fax: 34 943 550 047 NAVARRA mounting. HYPERECTIFIER moulding. appliances: electromagnetic E-mail: Activities: Pol. Ind. de Buñuel, technology. Systems for units and thermocouples. [email protected] Promotion of wind farms. Parcela G.1 analog and digital TV MATZ-ERREKA Activities: 31540 Buñuel reception: Receivers, Bº de Ibarreta, s/n TAJO ROCHMAN Manufacture and (Navarra) Modular, Amplifiers, satellite E-20577 Antzuola Polígono Ind. 48210 Ochandiano installation of lifts and Tel.: 94 883 20 12 dishes... (Gipuzkoa) Aranguren, 9 (Bizkaia) escalators. Maintenance Fax: 94 883 20 59 Distribution components. Tel.: 34 943 78 60 09 Bº Arragua Tel.: 34 945 450 075 and repair of lifts and E-mail: Home systems. Electronic Fax: 34 943 76 63 75 E-20180 Oiartzun Fax: 34 945 450 257 escalators. Installation and [email protected] subcontracting: regulation E-mail: (Gipuzkoa) E-mail: maintenance of pedestrian www.ecotecnia.com and control circuits for the matzerreka@matzerreka. Tel.: 34 943 26 00 00 [email protected] doors. Ecotècnia has a 25% domestic appliance and mcc.es Fax: 34 943 49 13 63 holding Activities: automotive sectors. www.matz-erreka.com E-mail: Rollways. Handling [email protected] Activities: Activities: Structures installations. FAGOR Assembly of wind-powered Plastic injection. and Handling Packaging and wrapping ELECTRONICS Activities: generators. (THAILAND) LTD. Fixing elements. Automation Plastic injection. Mould machines. equipment for doors and BIURRARENA Wellgrow Industrial construction for plastic CALDERERIA shutters. Pol. Bidebitarte URSSA Estate injection. TORRES ALTAMIRA Donostia Ibilbidea, 28 Campo de los Palacios 82 Moo 5 Bangna- Trad Pol. Ind. El Pinar, s/n MATZ-ERREKA Apdo. 887 Apdo. 284 Highway Km. 36 49530 Coreses MEX* 20014 Astigarraga 01006 Vitoria (Alava) Bangsamk-Bangpakong (Zamora) Misión de Bucareli, 8 (Gipuzkoa) Tel.: 34 945 135 744 Chachoengsao Tel.: 34 980 500 610 Parque Industrial Bernar- Tel.: 34 943 554 350 Fax: 34 945 135 792 24180(Thailand) Fax: 34 980 500 476 do Quintana Fax: 34 943 555 360 E-mail: [email protected] Tel.: 00 66 38 570089 (90) E-mail: Municipio El Marques E-mail: www.jet.es/urssa Fax: 00 66 38 570091 [email protected] CP 76249 Queretaro [email protected] E-mail: www.ecotecnia.com Activities: México Activities: [email protected] Ecotècnia , MCC Engineering, manufacture Tel.: +52 442 2216078 Machinery: Sale and After Fagor Electronica has a Inversiones and Urssa of metal structures. Fax: +52 442 2216080 100% holding Sales Service for public have a holding www.matz-erreka.com works machinery Activities: Activities: Activities: Environment: Design and Manufacture of electronic construction of sorting and Manufacture of towers for Plastic processing. components. recovery plants (light packa- wind-powered generators. ging, RCDs, domestic appliances and other tech- nologies) Underground containers.

50 Construction ULMA FORJA EREDU HERTELL IRIZAR MAGHREB Work and Bº Zubillaga, Apdo. 14 Ola Auzoa, 4 Poligono Industrial, 2 Oulja, Km 0.300 Materials 20560 Oñati 20250 Legorreta 20267 Ikastegieta Sal-e - Morocco (Guipúzcoa) (Gipuzkoa) (Gipuzkoa) Tel.: 212 7 81 01 15 ETORKI Tel.: 34 943 780 552 Tel.: 34 943 806 100 Tel.: 34 943 653 240 Tel.: 212 7 81 01 13 Pol. Ind. Murga, 16 Fax: 34 943 781 808 INDUSTRIAL Fax: 34 943 806 374 Fax: 34 943 653 332 EQUIPMENT Activities: 01479 Murga-Aiala www.ulma.es E-mail: [email protected] E-mail: [email protected] Coach manufacture. (Alava) www.hertell.net Activities: Activities: Tel.: 34 945 399 072 Leisure and sport Flanges and fittings. Metal furniture for Activities: Fax: 34 945 399 223 IRIZAR MÉXICO E-mail: DIKAR countryside, beach and Manufacture of vacuum Parque Ind. Bernardo ULMA garden. pumps, valves and [email protected] Urarte Kalea, 26 Quintana HORMIGON Modern furniture for indoor accessories for cisterns. Apdo. 193 Parcelas 7 al 12- Activities: POLIMERO use. (Pol. Ind. San Lorenzo) Manzana14 Pine boards and planks. IRIZAR Bº Zubillaga, 89 20570 Bergara Municipio El Marqués ORBEA Apdo. 20 (Gipuzkoa) San Andrés, 6 Queretaro-México LANA 20560 Oñati Tel.: 34 943 765 548 Pol. Ind. Goitondo 20216 Ormaiztegi Tel. 00 52 42 382500 C/ Santxolopetegui (Guipúzcoa) Fax: 34 943 760 814 48269 Mallabia (Gipuzkoa) Fax 00 52 42 215395 Auzoa, 24 Tel.: 34 943 780 600 E-mail: [email protected] (Bizkaia) Tel.: 34 943 809 100 E-mail: 20560 Oñati Fax: 34 943 716 469 Tel.: 34 943 171 950 Fax: 34 943 889 101 [email protected] (Gipuzkoa) www.ulma.es Activities: Fax: 34 943 174 397 E-mail: [email protected] Activities: Tel.: 34 943 780 111 Muzzle-loading weapons. E-mail: www.irizar.com Activities: Fax: 34 943 783 222 orbea@sarenet Coach manufacture. Prefabricated elements for Activities: E-mail: SHANGHAI www.orbea.mcc.es construction. Luxury long- and medium- [email protected] WINGROUP LEISURE TIANJIN IRIZAR Activities: distance coach bodywork. www.lana-scoop.es AND SPORTS COACH ULMA Bicycles. EQUIPMENT 218 Hong Qi Activities: MANUTENCION IRIZAR DO BRASIL Mengjing, Village, Nankai District Formwork boards. Boards for Pº Otadui, 8 Apdo. 32 Rodobia Mal. Rondon, Huangdu Town Tianjin (China) furniture. Three-ply boards. 20560 Oñati Technical Km. 252,5 Jinding District, Shanghai Tel.: 86 022 761 3041 Boards for structural use. (Guipúzcoa) Components CEP 18603-970 P.R. China Fax: 86 022 761 3345 Tel.: 34 943 782 492 and Equipment Botucatu-SP-Brasil Tel.: 8621 59594169 Irizar has a 36% holding Fax: 34 943 782 910 Tel.: 55 14 68028000 Fax: 8621 59594769 Ulma Group www.ulma.es AMPO Fax: 55 14 68028001 Activities: Activities: Bº Katea, s/n. E-mail: Coach manufacture. ULMA C y E Activities: Exercise equipment. Idiazabal (Guipúzcoa) [email protected] Automatic warehouses Pº Otadui, 3 Apdo. 13 Tel.: 34 943 188 000 Forklift trucks. Activities: 20560 Oñati WINGROUP Fax: 34 943 188 130 (Guipúzcoa) Coach manufacture. Apartado 168 Tel.: 34 943 034 900 Activities: Urarte, 14 Fax: 34 943 034 920 Steel casting and spun tube IRIZAR TVS 20570 Bergara www.ulma.es for industrial valves. AMPO Trichy Road, Viralimalai (Gipuzkoa) Industrial valves for petro- 621316 Tamil Nadu Activities: Tel.: 34 943 769 056 chemical industry, natural (India) Greenhouses. Fax: 34 943 769 178 gas, power and aluminium. Tel.: 00 91 4339 20393 Construction systems. E-mail: POYAM. Fax: 00 91 4339 20236 Packaging systems. [email protected] E-mail: Activities: EDERFIL [email protected] Camping and exercise Pol. Industrial, s/n Activities: equipment. 20250 Legorreta Coach bodywork. (Gipuzkoa) Tel.: 34 943 806 050 Fax: 34 943 806 349 E-mail: [email protected] Activities: Electric conductors.

51 List of MCC Companies

UROLA PRODESO COINALDE ROTOK INDUSTRIA ELCO-BRANDT Urola-Kalea, s/n Uribe Auzoa, 10 Concejo, 10 GRÁFICA 7 rue Henri Becquerel Apdo. 3 202500 Mondragón 01013 Vitoria Pol. Industrial Txirrita- 92500 Ruel Malmaison 20230 Legazpia (Gipuzkoa) (Alava) Maleo. Pabellón 11 (Francia) (Gipuzkoa) Tel.: 34 943 712 630 Tel.: 34 945 264 288 Pol. Ugaldetxo, s/n Tel.: 00 33 1 47 166886 Tel.: 34 943 737 003 Fax: 34 943 711 717 Fax: 34 945 253 997 20100 Renteria HOUSEHOLD GOODS Fax 00 33 1 47 166898 Fax: 34 943 730 926 E-mail: [email protected] (Gipuzkoa) Fagor Electrodomesticos has Activities: E-mail: Tel.: 34 943 344 614 Domestic a 10% holding Activities: Nails. Wire. Metal mesh. [email protected] Fax: 34 943 524 767 appliances Education and training Activities: [email protected] E-mail: rotok@ systems. Consultancy and ELKAR DOMUSA Manufacture of domestic www.urola.com mondragongraphics.com technical assistance in appliances. Larrondo Beheko www. Bº San Esteban, s/n Activities: education. Teaching Etorbidea, Edif. 4 mondragongraphics.com 20737 Régil Construction of blowing material. Technological EXTRA 48180 Loiu MCC Inversiones has a Aptdo. 95 - 20730 machines for the research centres. Company ELECTROMENAGER (Bizkaia) 37% holding and Keslan, Azpeitia manufacture of hollow creation and innovation Tel.: 34 944 535 205 Danona and Elkar a 38% Tel.: 34 943 813 899 Avenue Hassan II thermoplastic bottles. centres. General Fax: 34 944 535 776 holding Fax: 34 943 815 666 BP 179 Mohammedia Manufacture of blowing consultancy. E-mail: elkar@ (Marruecos) Activities: moulds. Plastic extrusion. mondragongraphics.com Activities: Tel.: 212 2 3327412 ALKARGO Individual boilers. Plastic injection moulding. www. Printing. Fax 212 2 3327425 Plastic blowing. Plastic Bº Belako, s/n mondragongraphics.com Fagor Electrodomésticos has injection moulding-blowing. Apdo 102 OIARSO EDESA a 100% holding. 48100 Mungia (Bizkaia) Activities: Bº Zikuñaga, 57-F Cervantes, 45 Tel.: 34 946 740 004 Industrial catalogues. Activities: Polígono Ibarluze 48970 Basauri Fax: 34 946 744 417 Books. Advertising leaflets. Manufacture of domestic Industrial 20128 Hernani (Bizkaia) E-mail: Annual Reports. Magazines. appliances. Services (Gipuzkoa) Tel.: 34 944 491 200 [email protected] Graphic products in general. Tel.: 34 943 335 020 Fax: 34 944 495 096 GEYSER GASTECH ALECOP Activities: Fax: 34 943 335 210 www.edesa.mcc.es LITOGRAFIA Bº San Juan s/n Loramendi, s/n Distribution transformers. E-mail: Activities: DANONA Apdo. 151 20500 Mondragón Medium-power transformers. [email protected] White goods. (Gipuzkoa) Autotransformers. Dry Pol. Ugaldetxo, s/n 20570 Bergara Tel.: 34 943 712 405 encapsulated transformers. 20180 Oiartzun Activities: (Gipuzkoa) (Gipuzkoa) For the health sector: FAGOR Tel.: 34 943 769 004 Fax: 34 943 799 212 ELECTRODOMESTICOS E-mail: Tel.: 34 943 491 250 Infusion equipment. Fax: 34 943 767 136 [email protected] Fax: 34 943 491 660 Transfusion equipment. Bº San Andrés, s/n Fagor Electrodomesticos www.alecop.mcc.es E-mail: danona@ Catheters. Epicraneals. Apdo. 49 has a 50% holding mondragongraphics.com Enteral nutrition. Parentaral 20500 Mondragón Activities: www. nutrition. Accessories and (Gipuzkoa) Activities: Technical educational mondragongraphics.com connectology. Probes. Tel.: 34 943 719 100 Gas water heaters. equipment. Prefabricated Anaesthesia equipment. Anti Fax: 34 943 796 881 Activities: electrical installations. AIDS kit. E-mail: MC LEAN Catalogues. Magazines. fagorelectrodomesticos@ Valentín Gomez, 151 Books. Posters. Leaflets. OSATU mcc.es 1706 Haedo Annual Reports. Travesía de Padure, s/n www.fagorelectrodomesticos Prov.Buenos Aires 48240 Berriz .mcc.es (Argentina) (Bizkaia) Tel.: 54 114 44898905 Activities: Fax: 54 114 49890942 Tel.: 34 946 225 399 Cookers. Ovens. Extractor Fax: 34 946 225 391 E-mail: fans. Microwave ovens. Air [email protected] E-mail:[email protected] conditioning. Fridges and www.osatu.com Fagor Electrodomesticos freezers. Washing machines. and MCC Inversiones Activities: Dryers. Dishwashers. Water have a 50% holding Electro-medical equipment: heaters. Boilers. Storage Basic defibrillators, with heaters. Kitchen units and Activities: monitor and recording, with kitchenware. Manufacture of domestic pacemakers and appliances.. pulsioximetry, semiautomatic.

52 WROZAMET Commercial MONDRAGON LKS CINYMA LKS INTELCOM Zmigrodzka 143 St. Equipment CONET Plaza Europa, 5º- 1º B Polígono Basabe Wroclaw (Polonia) FAGOR Iturroz, 21 bajo 15707 Santiago de FO, 2ª p. Tel. 00 4822 6398985 INDUSTRIAL 20500 Mondragón Compostela (A Coruña) 20550 Aretxabaleta Fax 00 4822 6398985 (Gipuzkoa) Tel.: 981 566 299 (Gipuzkoa) Santxolopetegui, 22 E-mail: INGENIERÍA Y BIENES Tel.: 943 712 727 Fax: 981 558 435 Tel.: 34 943 712 451 Aptdo. 17 DE EQUIPO [email protected] Fax: 943 711 750 E-mail: Fax: 34 943 712 351 20560 Oñati MCC Inversiones and E-mail: [email protected] E-mail: intelcom@ (Gipuzkoa) Fagor Electrodomesticos Automation [email protected] AIC, LKS and LKS lksingenieria.es Tel.: 34 943 718 030 have a 75.96% holding and Control www.conetion.com Ingeniería have a 90% LKS Ingenieria, MSI and Fax: 34 943 718 181 www.krisol.com holding AIC have a 100% holding E-mail: Activities: FAGOR AIC has a 62% holding Manufacture of domestic [email protected] AUTOMATION and MCC Desarrollo a Activities: Activities: appliances. www.fagorindustrial.com Civil Engineering. Engineering, Bº San Andrés s/n 38% holding Construction Engineering Telecommunications. Activities: Apdo. 144 Activities: Consultancy. Furniture 300 to 3,000 dishes/hour 20500 Mondragón EDE dishwashers. (Gipuzkoa) COINMA Connection services. Glass washers. 7-10-14-25- Tel.: 34 943 719 200 LKS IAMM Parque empresarial Inbisa Vitoriabidea 4-Z.I. 50 kg. washing machines. Fax: 34 943 791 712 Almda. Doctor Areilza, Edificio C. Ali - Gobeo LKS CDEE Ranges. Brat pans. E-mail: info@ 56 -1º Centro Polígono Aurrera M8 01010 Vitoria (Alava) General Arrando, 40-3º Convection and combi faborautomation.es 48010 Bilbao 48510 Trapagarán Tel.: 34 945 241 616 28010 Madrid steamers (gas and electric). www.fagorautomation.com Tel.: 944 702 080 (Vizcaya) Fax: 34 945 240 637 Tel.: 34 913 191 299 Fryers. Fry-tops. Fax: 944 701 107 Lks Ingeniería has a 70% E-mail: Activities: Fax: 34 913 198 102 Commercial refrigeration. E-mail: holding [email protected] Numerical controls. Digital E-mail: [email protected] www.sidi.es/coinma readouts. Linear and rotary [email protected] Activities: FAGOFRI LKS has a 60% holding transducers. Feed and AIC, LKS, S.Coop have a Consultancy and energy Activities: Ctra. Córdoba-Málaga headstock regulators. Feed 73% holding Activities: supplies, Cogeneration, Office furniture. km. 8 and headstock motors. Market research Installation and process 14900 Lucena Activities: engineering. COINMA INDIA (Córdoba) Engineering and LKS INGENIERIA consultancy. 41, Sector 18, Udyog Tel.: 34 956 516 179 Engineering Pº José Mª MACLA Vihar, Gurgaon Fax: 34 957 515 621 and Arizmendiarrieta, 5 Plaza de 122001 Haryana (India) Fagor Industrial has a Consultancy LKS CONSULTORES 20500 Mondragón Escabazábal, 8-6º Tel.: 91 124 6348245 51% holding Pº José Mª (Gipuzkoa) 31600 Burlada Fax: 91 124 6346870 Arizmendiarrieta, 5 (Navarra) Activities: e-LKS Tel.: 34 943 712 488 E-mail: 20500 Mondragón Tel.: 34 948 363 456 Domestic appliances. Avda. La Cerrada, 37 Fax: 34 943 793 878 [email protected] 39600 Maliaño (Gipuzkoa) E-mail: Fax: 34 948 136 694 www.interiorsespania.com KIDE (Cantabria) Tel.: 34 943 770 335 [email protected] LKS Ingeniería has a Fax: 34 943 771 012 www.lksingieneria.mcc.es 46% holding Activities: Pol. Gardotza, s/n Tel.: 34 942 261 096 Furniture for the home Fax: 34 942 260 506 E-mail: 48710 Berriatua Activities: Activities: and office. E-mail: [email protected] [email protected] (Bizkaia) Engineering consultancy. Civil engineering. www.enyca.es Tel.: 34 946 833 510 Activities: Industrial design. Civil Construction engineering DANONA AIC, MSI and MCC Fax: 34 946 833 133 Consultoría: Consultancy. engineering. Building. Town planning advice Anardi Area, 2 E-mail: have a 66.6% holding Management Advice. Environmental advice. Apdo. 42 [email protected] Activities: Specific solutions. Training 20730 Azpeitia (Gipuzkoa) in Strategy, Quality and Tel.: 34 943 815 900 Activities: Telecommunications engineering. Continuous Improvement, Insulated panels and doors Fax: 34 943 151 481 Marketing, Organisation for coldrooms, cold stores E-mail: and Human Resources, and miniboxes. [email protected] Industrial Engineering and www.danona.mcc.es Logistics, Economic- Activities: Financial matters. Account Veneered and melamine auditing. lounge furniture. Veneered and melamine dining room furniture. Veneered and melamine bedroom furniture Veneered and melamine chil- dren’s bedroom furniture Upholstered sofas. 53 List of MCC Companies

LKS TASACIONES MSI ONDOAN Forming Forming MONDRAGON Pol. Basabe, Edificio F MONDRAGON Parque Tecnológico and Assembly machinery ASSEMBLY 20550 Aretxabaleta SISTEMAS DE Edif. 101 módulo C BATZ AURRENAK Parc d‘activités le (Gipuzkoa) INFORMACION 48170 Zamudio Pradines TROQUELERIA Vitorialanda 15 Tel.: 943 712 100 Ama kandida, 21 (Bizkaia) 84100 Orange Bº Torrea 32 - 34 Ali - Gobeo Fax: 943 797 735 (Denac) Tel.: 944 522 313 France 48140 Igorre 01010 Vitoria E-mail: tasaciones@ 20140 Andoain Fax: 944 521 047 Tel.: 33 49 0111 660 (Bizkaia) Tel.: 34 945 244 850 lksingenieria.es (Gipuzkoa) E-mail: [email protected] Fax: 33 49 0511 887 Tel.: 34 94 6315 707 Fax: 34 945 246 912 www.lks.es Tel.: 34 943 594 400 E-mail: Delegación en Gipuzkoa: Fax: 34 94 6315 566 E-mail: LKS Ingenieria has a Fax: 34 943 590 536 Polígono Basabe, F05 [email protected] E-mail: [email protected] 90% holding E-mail: 20550 Aretxabaleta [email protected] Fagor Sistemas has a [email protected] (Gipuzkoa) Activities: 99% holding Activities: [email protected] Tel.: 943 771 587 Activities: Tooling for different iron Property valuation. Property Activities: Fax: 943 771 684 Die manufacture. and aluminium casting advice. Property Activities: Automatic assembly E-mail: aretxabaleta technologies in the management. Computer systems and systems. @ondoan.com MATRICI automotive sector. services. Polígono Ugaldeburu II Robotics. LKS STUDIO Activities: 48170 Zamudio Design and development of: FAGOR Almagro, 15 - 5ª planta SEI (Bizkaia) DIMAQ TORELLO Engineering projects and site ARRASATE 28010 Madrid (Madrid) Le Forum Tel.: 34 946 002 020 Mas les Vinyes, 18 management, carrying out Bº San Andrés, 20 Tel.: 917 022 474 64116 Bayonne CEDEX Fax: 34 944 522 225 08570 Torello and maintenance of general Apdo. 18 Fax: 917 022 475 (Francia) (Barcelona) installations, emergency and Activities: 20500 Mondragón E-mail: [email protected] Tel.: 33 559 580 000 Tel.: 34 948 504 262 self-protection plans and Die manufacture. (Gipuzkoa) LKS Ingenieria and AIC Fax: 33 559 580 199 Fax: 34 938 594 062 turnkey systems. Tel.: 34 943 719 999 have a 60% holding E-mail: sei@eureka. E-mail: [email protected] Environmental Consultancy Fax: 34 943 799 677 archimedia.fr Fagor Sistemas has a Activities: and Advice Service. E-mail:fagorarrasate@ MSI and AIC have a 50% holding Building project Workplace Risk Prevention fagorarrasate.com 100% holding management. Consultancy and Advice www.fagorarrasate.mcc.es Activities: Activities: Service. Maintenance and Automatic assembly Activities: INDISER Computing and software Repair of general systems. installations in industrial Presses and stamping Plaza Alférez development. buildings and services. systems. Provisional, 3 entreplanta Strip processing systems. ONA-PRES I3S 26001 Logroño ONDOAN Welded tube and section Pol. Industrial Plaza del Museo,1-3º (La Rioja) SERVICIOS manufacturing systems. Ugaldeguren II Tel.: 941 221 318 48009 Bilbao Parque Tecnológico Transfer, progressive and Bº San Antolín, s/n Tel.: 34 944 241 993 Fax: 941 226 558 Edif. 101 módulo C conventional dies. 48170 Zamudio Fax: 34 944 238 348 E-mail: 48170 Zamudio Engineering and consulting. (Bizkaia) MSI, MCC Inversiones [email protected] (Bizkaia) Tel.: 34 944 523 808 and AIC have a 51% LKS Ingenieria has a Tel.: 944 522 270 FAGOR SISTEMAS Fax: 34 944 523 980 100% holding holding E-mail: Fax: 944 521 047 Polígono Industrial [email protected] Activities: Activities: Ondoan, S. Coop. has a Basabe, pab. E. Winery project Consultancy and sale of 100% holding. Apdo. 198 Activities: computer services. engineering. Activities: 20550 Aretxabaleta Hydraulic presses. Installation maintenance (Gipuzkoa) management. Tel.: 34 943 712 080 Fax: 34 943 712 210 E-mail: [email protected] Activities: Automatic assembly systems. Robotics.

54 ESTARTA SORALUCE LATZ RECTIFICADORA Bº Osintxu Avda. de los Gudaris, C/ Autonomía, 1 B-20570 Bergara s/n Apdo. 147 (Gipuzkoa) Apdo. 56 E-20870 Elgoibar Tel.: 34 943 748 050 20140 Andoain MÁQUINAS (Gipuzkoa) Fax: 34 943 765 128 (Gipuzkoa) HERRAMIENTA Tel.: 34 943 743 705 E-mail: Tel.: 34 943 592 512 Fax: 34 943 741 758 [email protected] Fax: 34 943 591 391 Machine Tools E-mail: www.soraluce.es E-mail: (Cutting) [email protected] [email protected] Activities: DANOBAT Activities: Moving column milling Activities: Distribution Group Arriaga kalea, 21 Construction of centreless centres. Fixed bed CNC Standard HSS, HSSCo and Apdo. 28 grinding machines. milling machines. Machining solid carbide drills. Special E-20870 Elgoibar centres. Radial drilling HSS, HSSCo and solid Distribution EROSKI (Gipuzkoa) GOITI machines. carbide tools. Bº San Agustín, s/n Tel.: 34 943 740 250 Arriaga Kalea 1 CONSUM 48230 Elorrio (Bizkaia) Fax: 34 943 743 138 Apdo. 80 ORTZA Avda. de Espioca, s/n Tel.: 34 946 211 211 E-mail: E-20870 Elgoibar Machinery for Pol. Areta, s/n 46400 Silla (Valencia) Fax: 34 946 211 222 [email protected] (Gipuzkoa) Wood, Tooling 31620 Huarte-Pamplona Tel.: 34 961 974 050 E-mail: www.danobat.com Tel.: 34 943 748 323 and Fixtures (Navarra) Fax: 34 961 974 092 [email protected] Fax: 34 943 748 144 Tel.: 34 948 330 438 www.eroski.es Activities: DOIKI E-mail: E-mail: Fax: 34 948 330 002 [email protected] Grinding machines: CNC, Pol. Ind. Goitondo 5 Activities: [email protected] E-mail: cylindrical, exteriors and 48269 Mallabia Retailing in small and large www.goiti.com [email protected] Activities: interiors, flat surfaces, bridge (Bizkaia) Retailing of consumer stores: Fruit and vegetables, and special for the Activities: Tel.: 34 943 171 600 Activities: products in small and large meat and cold meats, fish, aeronautical sector. CNC sheet metal punching Fax: 34 943 174 273 Machinery for wood. stores: Fruit and vegetables, dairy products, groceries, Lathes: CNC, lathe centres, machines. E-mail: Equalising and sectioning meat and cold meats, fish, drinks, frozen food, sundries vertical. Automatic handling. CNC punching machines [email protected] saws. Machining centres. dairy products, groceries, and cleaning materials, with shears included. Activities: drinks, frozen food, cleaning textiles, domestic appliances, DANOMAR Laser cutting machines. ZUBIOLA leisure articles, do-it-yourself, Dimensional verification materials and household 3400 CLUJ Napoca - Automatic press brakes and Bº Landeta, s/n sound and vision, tooling. High precision goods, textiles, domestic ROMANIA B-dul flexible bending and 20730 Azpeitia kitchenware, travel and mechanics. Electronic, appliances, leisure articles, MunciiNr 14 punching systems. (Gipuzkoa) petrol. pneumatic and mechanical do-it-yourself, sound and PO.Box1404 Punching tools. Tel.: 34 943 157 056 gauges. Machining fixtures. vision, kitchenware. Tel.:0040-64-415006 Fax: 34 943 150 026 ERAMA Fax.:0040-64-415047 LEALDE EGURKO E-mail: EREIN COMERCIAL RESTAURACIÓN Barrio Cortazar, s/n [email protected] Activities: Basusta Bidea, 9 Pol. Ibur Erreka, s/n Centro Comercial Apdo. 11 Machine tools. Apdo. 25 Activities: Apdo. 242 Garbera, local 68 I-48288 Ispaster (Bizkaia) 20015 Donostia 20750 Zumaia Tools for wood: HSS drills. 20600 Eibar (Gipuzkoa) Tel.: 34 946 844 004 (Gipuzkoa) D+S SISTEMAS (Gipuzkoa) MD drills. HSS milling Tel.: 34 943 208 544 Fax: 34 946 844 130 Tel.: 34 943 394899 Arriaga Kalea, 1 Tel.: 34 943 860 100 cutters. MD milling cutters. Fax: 34 943 208 634 E-mail: Fax: 34 943 401388 Apdo. 80 Fax: 34 943 143 107 Discs. Cutter heads. [email protected] [email protected] E-mail: erama.ss@ E-20870 Elgoibar E-mail: Window units. Cutters. Activities: (Gipuzkoa) www.lealde.com bezeroak.euskaltel.es [email protected] Marketing of food products Tel.: 34 943 748 050 Eroski has a 50% holding Activities: to the catering trade and Fax: 34 943 743 767 Activities: and Auzo-Lagun has a Horizontal CNC lathes. collectives. Machinery for wood. Edge 50% holding E-mail: Vertical CNC lathes. veneering machines. [email protected] Activities: www.ds-sistemas.com Profiling machines. Catering. Combined veneering + Activities: profiling machines. Sanding Special machinery. Special machines. and transfer machines. Flexible machining lines.

55 List of MCC Companies

FORUM SPORT JANGARRIA MIBA MODUTEK, S. COOP. Education and Bº Kortederra, s/n Katuarri, 20 Ctra. Etxebarria, s/n Edificio, 105 Training Centres 48340 Amorebieta Ansoain- Navarra 48270 Markina RESEARCH, EDUCATION Parque Tecnológico (Bizkaia) Tel.: 34 948 140 192 (Vizcaya) AND TRAINING CENTRES 48170 Zamudio ARIZMENDI Tel.: 34 946 300 094 Fax: 34 948 131 892 Tel.: 34 946 167 884 (Bizkaia) Larrin Plaza, 1 Fax: 34 946 300 760 Auzo-Lagun has a 100% Fax: 34 946 167 886 Tel.: 946 420 9601 20550 Aretxabaleta E-mail: holding Olaeta-Aramaiona Fax: 946 420 9602 (Gipuzkoa) [email protected] (Alava) Research Activities: E-mail: Tel.: 943 793 132 The Eroski Group has a Granja: Centres Catering for groups. [email protected] Fax: 943 797 922 52% holding 34 945 450 259 Complete service for health Cikautxo has 6.6% E-mail: IDEKO Activities: care sector. Activities: holding, Maier a 26.7% [email protected] Arriaga kalea, 2 Shopping and Sports Compound feeds. Small holding, Batz a 16.7% Activities: Centres. BARRENETXE agricultural machinery. Apdo. 80 holding and Fundación Education. Okerra, 7 Fertilisers and seeds. 20870 Elgoibar MCC a 50% holding. EROSMER 48270 Markina (Bizkaia) Phytosanitary products. (Gipuzkoa) Activities: CIM (AHIZKE) Bº San Agustín, s/n Tel.: 34 946 168 143 Veterinary service. Tel.: 34 943 748 000 Automobile module Avenida de Alava, 4 48230 Elorrio (Bizkaia) Fax: 34 943 743 804 Explot. Berriatua: engineering and 20500 Mondragón Tel.: 34 946 211 211 Tel.: 34 946 139 157 MULTIFOOD E-mail: Bº Uribarri, 13 A [email protected] development centre. (Gipuzkoa) Fax: 34 946 211 222 Explot. Etxeberria: 20500 Mondragón www.ideko.es Tel.: 34 943 712 055 Participada al 78,07% Tel.: 34 946 166 173 (Guipúzcoa) MIK Fax: 34 943 712 181 E-mail: Activities: Activities: Tel.: 34 943 711 960 Uribarri Etorbidea, 3 E-mail: [email protected] [email protected] Development of and Retailing of consumer Fax: 34 943 711 961 Apartado 79 www.cim-idiomas.com products in large stores. innovation in machine tools Activities: 20500 Mondragón Activities: and systems. Product Activities: Horticulture in greenhouses (Gipuzkoa) Ready-prepared food. development. Improvement Language training. and the open air. Tel.: 34 943 719 191 Agricultural-food of production processes. Translation and interpreting Fax: 34 943 793 999 UNEKEL Technical support. service. BEHI-ALDE E-mail: AUZO-LAGUN Barriada de Berrio, s/n Technology monitoring. Olaeta-Aramaiona [email protected] Uribarri Auzoa, 13 48230 Elorrio (Bizkaia) ETEO (Alava) www.mik.es 20500 Mondragón Apdo. 44 (Mondragón) Tel.: 34 946 167 884 IKERLAN ESCUELA UNIVERSITARIA (Gipuzkoa) Tel.: 34 945 450 100 Fax: 34 946 167 886 José María Activities: ESTUDIOS EMPRESARIALES Tel.: 34 943 794 611 Granja: 34 945 450 100 Activities: Arizmendiarrieta, 2 Management Larraña, 33 Fax: 34 943 794 366 Apdo. 146 research centre. 20560 Oñate Activities: Breeding of rabbits. E-mail: 20500 Mondragón (Gipuzkoa) Milk. Livestock for breeding [email protected] (Gipuzkoa) MTC Tel.: 34 943 781 311 and meat. Activities: Tel.: 34 943 771 200 MAIER TECHNOLOGY E-mail: Catering. Cooked dishes. GSR Fax: 34 943 796 944 CENTRE [email protected] Cleaning of buildings and E-mail: Uribe Auzoa, 13 Pol. Ind. Arabieta Activities: premises. 20500 Mondragón [email protected] 48300 Gernika Training in business Complete service for the (Guipúzcoa) www.ikerlan.es (Bizkaia) administration. health care sector. Tel.: 34 946 259 265 Tel.: 34 943 770 400 Activities: Fax: 34 946 259 258 Fax: 34 943 794 366 Contracted R&D projects for GOIERRI COMISLAGUN E-mail: E-mail: the development of new Granja Auzoa, s/n. Padre León, 9 [email protected] [email protected] Alaquas- Valencia products or for the 20240 Ordizia Tel.: 34 961 988 016 Activities: improvement of production Activities: (Gipuzkoa) Fax: 34 961 515 907 esidential service processes. Research and development Tel.: 943 880 062 E-mail: management. Mechatronics: electronics in automotive assemblies Fax: 943 880 176 [email protected] and technical design and and components made with E-mail: Auzo-Lagun has a 73.4% production systems. thermoplastics. Development [email protected] holding Energy: rational use of of new technologies. Activities: energy, renewable energy. Activities: Education. Catering for groups. Complete service for health care sector.

56 HUMANITIES OTALORA MCC INNOVACION International MCC MOSCU-CEI AND EDUCATION Palacio Otalora Pº José María Services Leninsky Prospekt, 113/1 SUPPORT BODIES AND SCIENCE FACULTY Barrio Aozaraza s/n Arizmendiarrieta, 5 MCC INDIA Park Place, Office E-1001 20540 Eskoriatza 20550 Aretxabaleta INTERNATIONAL SERVICES 20500 Mondragón Moscow, Russia 117918 1110, Eleventh Floor, (Gipuzkoa) (Gipuzkoa) (Gipuzkoa) Tel.: +70 95 156 5307 International Trade Tel.: 34 943 714 157 Tel.: 34 943 712 406 Tel.: 34 943 779 300 Fax: +70 95 156 5307 Tower Fax: 34 943 714 032 Fax: 34 943 712 338 Fax: 34 943 796 632 E-mail: mcc_internacional Nehru Place, E-mail: E-mail: Support Bodies www.mondragon.mcc.es @wanadoo.es New Delhi [email protected] [email protected] Activities: 110019 - India Activities: www.huhezi.edu ATEGI Activities: Iturriotz, 27 - 2º Funding of technological Tel.: +9111 622 1964 Corporate office. Activities: Co-operative and business 20500 Mondragón projects. Fax: +9111 623 1612 University Teacher Training training. (Gipuzkoa) E-mail: MCC USA College. Tel.: 34 943 711 930 MCC NAVARRA [email protected] 1775 Pensylvania Avda. Carlos III, 36-1º TXORIERRI Fax: 34 943 773 101 Activities: Avenue, N.W.10th Floor, Pamplona Washington, D.C. 20006 LEA-ARTIBAI POLITEKNIKA IKASTEGIA E-mail: [email protected] Corporate office. Avda. Jemein, 19 Untzaga Ibaia kalea, 1 www.ategi.com (Navarra) USA 48270 Markina 48016 Derio (Bizkaia) Tel.: 34 943 421 942 Tel.: +1 202 463 7887 Activities: MCC (Bizkaia) Tel.: 34 944 544 000 Fax: 34 943 421 943 Fax: +1 202 861 4784 Purchasing portal. INTERNACIONAL Tel.: 34 946 167 552 MCC has a 25% holding E-mail: Fax: 34 944 544 003 Arizmendiarrieta, 5 Fax: 34 946 166 674 [email protected] E-mail: FUNDACION MCC Activities: 20500 Mondragón www.leartik.com [email protected] Company promotion. Arizmendiarrieta, 5 (Gipuzkoa) Activities: www.educanet.net/txorierri Activities: 20500 Mondragón Tel.: 34 943 779 300 Corporate office. MCC SUSTRAI Technical education. Activities: (Gipuzkoa) Fax: 34 943 796 632 Technical education. Tel.: 34 943 779 300 Arizmendiarrieta, 5 E-mail: [email protected] MONDRAGON MONDRAGON 20500 Mondragón BEIJING Fax: 34 943 796 632 Activities: ESKOLA (Gipuzkoa) Room 926, Golden E-mail: fundació[email protected] International business POLITEKNIKOA Tel.: 34 943 77 93 00 Land Building Activities: promotion. C/Loramendi, 4 Fax: 34 943 79 66 32 32 Liang Ma Qiao Promotion of the social 20500 Mondragón Road, Chaoyang economyl. Activities: MCC MEXICO (Gipuzkoa) District,100016, Property management. Horacio 1213, Tel.: 34 943 794 700 Beijing, P.R.China MCC Colonia Polanco, Fax: 34 943 791 536 Tel.: +8610 6464 3681 INVERSIONES C.P. 11550 México D.F. E-mail: [email protected] Fax: +8610 6464 3680 México Arizmendiarrieta, 5 E-mail: Activities: Tel.: +52 55 5545 3930 20500 Mondragón [email protected] Technical education. (Gipuzkoa) Fax: +52 55 5531 5172 Tel.: 34 943 779 300 E-mail: Activities: UNIVERSIRY OF Fax: 34 943 796 632 [email protected] Corporate office. MONDRAGON Activities: Activities: C/Loramendi, 4 MONDRAGON Company promotion. Corporate office. 20500 Mondragón ZAGROS (Gipuzkoa) MCC DESARROLLO MCC Arizmendiarrieta, 5 Tel.: 34 943 794 700 20500 Mondragón Pº José María MONDRAGON- Fax: 34 943 791 536 (Gipuzkoa) Arizmendiarrieta, 5 BRASIL E-mail: [email protected] Tel.: 34 943 779 354 20500 Mondragón Alameda Santos 2.335, Fax: 34 943 796 632 Activities: (Gipuzkoa) 7º andar, Cj.71 E-mail: [email protected] University education. Tel.: 34 943 779 300 CEP 01419-002 Fax: 34 943 796 632 Sao Paulo-SP-Brasil Activities: www.mondragon.mcc.es Tel.: 55 11 3082 3336 Commercial and Industrial MCC Inversiones and E-mail: services. Caja Laboral have a [email protected] 23.75% holding Activities: Activities: Corporate office. Company promotion.

57 Mondragón, 20 May 2003