MCC/Memoria 98/Inglâ€Łs

MCC/Memoria 98/inglés 17/6/99 12:51 Página 1

Annual Report 1998

MONDRAGON CORPORACION COOPERATIVA

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ondragón Corporación Cooperativa (MCC) is the fruit of the co-operative movement initiated in 1956, the year in which the first industrial co- operative was set up in Mondragón, Gipuzkoa, M Spain. Its business philosophy can be found in its Corporate Values:

• Co-operation • Participation • Social Commitment •Includes Innovation banking, social welfare, insurance and

MCC’s mission combines the basic objectives of a business organisation competing on international markets with the use of demo- cratic methods in its company organisation, job creation, advan- cement of its workers in human and professional terms and commitment to social development.

In organisational terms, Mondragón Corporación Cooperativa is divided into three groups: Financial, Industrial and Distribution, together with the Research, Training and Education areas.

Financial Group: leasing Industrial Group: Consists of seven divisions engaged in industrial production. Distribution Group: Combines retailing with agricultural-food activities.

CENTRO CORPORATIVO de MCC Pº José Mª Arizmendiarrieta, nº 5 20500 MONDRAGON - Guipúzcoa MCC/Memoria 98/inglés 17/6/99 12:51 Página 1

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Sumary

Highlights 4

Message from the President 5

Financial Group 9 •Caja Laboral 11 •Lagun-Aro 13

Industrial Group 15 •Automotive 18 •Components 19 •Construction 20 •Industrial Equipment 21 •Household Goods 22 •Engineering and Capital Goods 23 •Machine Tools 24

Distribution 25 •Eroski 27 •Erkop 29

Research, Training and Education 31 •Research Centres 32 •Training and Education Centres 34

Financial Statements and Trading Account 37

Organisational Structure 42

Social and Management Bodies 42

List of MCC Companies 45

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Highlights

• In millions of euros 1996 1997 1998

Total Sales 3,786 4,368 5,348

International Sales 1,080 1,255 1,434

Assets Under Administration* 4,402 5,024 5,708

Equity 2,000 2,369 2,843

Investment 271 378 425

Results 216 314 414

* Caja Laboral

Workforce

31,963 1996 34,397 1997 42,129 1998

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he general economic situation, characterised by a significant rate of growth, a reactivation in consumer spending, a high investment Tlevel, contained inflation and falling interest rates, provided the right framework for the achievements made by Mon- dragón Corporación Cooperativa which, in general, exceeded the targets set for the year.

A favourable economic climate certainly helps, but it has to be managed. In this regard, an organisation based on people enables significant improvements to be made in terms of knowledge, which is the basis for business development in the world in which we live. Our results are the fruit of the commitment of all the people who form part of the Corpo- ration, whose efforts must be acknowledged as the reason behind the achievements made.

The MCC Management Model, based on the co-operative principles behind this project, continues to be implemented and developed, with significant achievements made during the year.

• Significant improvement in the number of applications of the model, with 67 companies applying the EFQM self-evaluation, as well as in the scores achieved, with two co-operatives having formally joined the 400 club.

• General measurement of the satisfaction of the workforce, essential for finding out what members think and be able to establish plans for improvement.

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• Widespread use of instruments to measure customer satisfaction, in the awareness that our future is inevitably linked to them.

• Advances in the development of internal communication, with increasingly more widespread specific plans.

Qualitative developments have made possible significant increases in the activities of the three groups: Financial, Industrial and Distribution, with improvements that have enabled an increase in market share.

Activity on the international stage, an aim pursued with deter- mination in the different plans, has enabled further advances to be made towards the 50% target established for the year 2000. More production plants have been set up abroad and bit by bit our culture is beginning to accept that to operate in many markets it is necessary to have productions plants in situ.

As a result of the excellent performance of other variables, there has been a significant increase in profitability, thereby establishing the bases for future development and enabling a firm commitment to be made to investment, as the best indicator of our undertaking to reinvest profits in order to gener- ate wealth. Results for the year totalled 414 million euros, which is 32% higher than those obtained in 1997.

The most outstanding achievement of the year has been without doubt the creation of 7,732 new jobs. This has

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helped to ease one of the biggest problems our society suf- fers from. For us, employment is a basic objective and we are naturally bound to strive to create more jobs.

1998 has therefore been a positive year, in which we have tried to offer an open image, of collaboration with others. This has resulted in the signing of new agreements, based on the conviction that our commitment to the values that inspire us will better reach fruition through solidarity.

Antonio Cancelo President of the General Council

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Financial Group

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FINANCIAL GROUP

n the financial area was offset by the increased vol- Worker Participation. In 1998 was charac- ume of business recorded in 1998 this Group’s workforce I terised by the conver- 1998 due to the improvement in increased by 45 people, mainly gence of interest rates, both the economy. In turn, the excel- cooperative members, to account long- and short-term, in the coun- lent performance of the financial for a total of 1,858 people at tries that have adopted the euro markets helped boost results, 31.12.98. as the single currency. This con- which for this Group, in overall The training courses offered dur- vergence has taken place at terms, increased by 26% com- ing the year were aimed at lower levels than expected, pared to 1997. improving the technical abilities which has led to revaluations of Internationalisation. of the workforce (tax matters, the the fixed and variable income Caja Laboral is the only company in euro, sales methods, etc.). Pro- portfolios, and also a tightening motion courses were also of the financial intermediation this Group that operates on the international stage, with an offered as was aid for comple- margins. mentary courses. extensive network of foreign cor- In this context, the compliance of respondent banks. It should also be highlighted that MCC’s Financial Group with the over the year, 7 million euros The most outstanding aspects in Basic Corporate Objectives has from Caja Laboral’s Education 1997 were the 19% increase in been as follows: and Promotion Fund were ear- the volume of commercial opera- Customer Satisfaction. Dur- marked for co-operative training tions abroad, the signing of a ing the year work was intensi- and promotion, and research as collaboration agreement with fied on the direct measurement well as cultural and health mat- CESCE to market a commercial of customer satisfaction, by ters. risk cover policy for exporters, means of self-evaluations, certifi- as well as the successful adapta- Among the aspects relating to cations and improvement pro- tion to the euro, with services Lagun Aro, the positive perfor- grammes. Caja Laboral’s Elec- now being offered in the new mance of the Employment Aid tronic Banking service and currency. benefit should be highlighted, Seguros Lagun-Aro’s car Insur- with its cost being half that ance business obtained ISO Development. All the indica- recorded in 1997. The efforts 9000 certification from AENOR. tors of the levels of activity of this made to clear up problems with In order to improve customer ser- Group recorded increases in early retirement and collaborate vice, 13 new bank branches 1998. Total customer assets in the management of health and 5 new insurance offices under administration and bank care for the Spanish Social Secu- were opened, the number of investment recorded two-digit rity system also stand out. A branches open all day was increases, while the high level of Community Service for the Pre- increased and there was promo- profitability obtained has rein- vention of Occupational haz- ■ tion of the alternative Telephone forced the soundness of the net ards was also set up. and Electronic Banking services. worth of the group, taking Caja The Electronic Banking service Laboral’s equity to 669 million Juan María Otaegui was given a further boost with euros and Lagun-Aro’s funds to MCC Vice-president Chief Executive - Financial Group the start-up of Caja Laboral Net, 1,721 million euros. an interactive banking service The opening of new bank via the Internet. branches continued, mainly in Profitability. The tightening of areas with greater expectations intermediation margins as a for business development like La result of the fall in interest rates Rioja and Castilla-León.

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FINANCIAL GROUP

Caja laboral Sdad. Coop. de Crédito

Caja Laboral, Head Offices, Mondragón

aja Laboral is a credit is an increase of 20.3% com- tal adequacy ratio was 21.3%, institution which, set up pared to 1997. well in excess of the minimum by the industrial co-oper- requirement of 8%, as well as C Deposits totalled 4,191 million atives in 1959, has played a the average for the sector. euros at the end of the year, with key role in the financing of these a notable increase over the year As far as lending business was companies, in making them part of 15.9%, due mainly to the new concerned, net bank investment of a joint project and the pro- savings schemes launched in increased by 17.1% over the moting of new business activi- 1998. Resources administered year, taking the balance of this ties, establishing the bases of off the balance sheet, with the heading to 3,084 million euros. what is today Mondragón Cor- performance of pension funds The most active type of loan is poración Cooperativa. and unit trusts standing out, also still the mortgage loan, with an 1998 was an excellent year for recorded a 16% increase, tak- increase of 363 million euros. Caja Laboral, in spite of the ing the overall figure of customer Mortgage loans now account for uncertainty which has dominat- assets under administration at 71% of all loans to the private ed the activities of the financial the end of the year to 5,708 mil- sector. markets and the successive cuts lion euros. Net investment of the securities in interest rates that finally took Equity continued to grow, boost- portfolio, consisting of fixed and the official rate to 3%, with the ed by the high level of prof- variable income securities, as resulting pressure on the bank- itability obtained and the well as holdings in group com- ing sector intermediation mar- demanding policy of capitalisa- panies, rose to 1,011 million gin. tion of profits, taking the final euros, a relative increase of Total assets on the balance sheet figure to 669 million euros. In 29.7%, with the biggest accounted for 5,476 million accordance with Bank of Spain increase in the public funds port- euros at the end of 1998, which regulations, the institution’s capi- folio.

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FINANCIAL GROUP

For its part, investment in cash, guaranteed term-savings sche- banks and credit institutions, the Deposits mes and the extension of the balance of which includes the In millions of euros Ahorro Bienestar scheme stand cash and central bank figures as 4,191 out. well as the net position with 3,651 3,615 As for commercial activity aimed credit institutions, remained at a at the business sector, the boost similar level to the previous year, to the Electronic Banking service with a balance of 638 million with the start-up of Caja Laboral euros at the end of the year. Net, interactive banking via the In terms of the profitability Internet, enabling customers to obtained in 1998, the most out- operate in both pesetas and standing aspects were the 2.3% 1996 1997 1998 euros should be highlighted. increase in the intermediation Finally, a mention should be margin, in spite of the inherent given to Aroleasing, a company difficulties in the fall in interest Net bank Investment specialising in financial leasing, rates, the 22% increase in com- In millions of euros which has belonged 100% to mission on services, with those Caja Laboral since 1996. for the management of unit trusts 3,084 standing out, and the results 2,635 In 1998, Aroleasing signed from financial operations. Profits 2,147 1,834 new contracts, to the before tax came to 111 million value of 80 million euros, which euros, which was 13.3% higher represents an increase of 28% than in 1997. over the 1997 figure. Of all the From the qualitative point of investment made, 66% was view, this was the second year channelled through the branches covered by the Strategic Plan 1996 1997 1998 of Caja Laboral. 1997-2000, which established Loan investment at the end of the basic objective of maintain- the year totalled 154 million ing leadership in terms of prof- euros, with an increase of 19% Equity itability, solvency and efficiency. over the year and the doubtful In millions of euros Following the guidelines ema- debt ratio at 2.72%, an 669 improvement of 9.5% compared nating from this plan, in terms of 590 commercial activity aimed at the to the percentage recorded in 514 ■ private sector the launch of new 1997.

1996 1997 1998

12 FINANCIAL GROUP

Lagun Aro Voluntary Social Welfare Institution

he members of the co- operatives forming T part of Mondragón Corporación Cooperativa re- ceive their social welfare benefits through Lagun-Aro, an institution whose task it is to provide them with social security cover, to complement or replace the Lagun-Aro, Head Offices, Mondragón eurosPublic System. in At 31 December 1998, Lagun- This enabled 32 million euros in Lagun-Aro's activities also Aro EPSV had 20,591 mem- pensions to be paid out in include a Company Medicine bers, in 115 co-operatives. This 1998. At the end of the year, Service for the co-operatives and figure was an increase of 1,249 there were 4,343 people receiv- their members. The aim of this service is to improve health and people since 1997. ing pensions. working conditions through its As far as pro rata benefits are These benefits are guaranteed Medical, Laboratory, and Safety concerned, which are short-term by Lagun-Aro's funds, which at and Hygiene Departments. In benefits funded by the quotas the end of 1998 came to 1,721 1998, this service carried out paid by the co-operatives, these million euros, once the returns on 2,244 medical examinations on totalled 35 million the investment portfolio had possible new members, 23,784 1998. Under this heading, Sick been applied. In comparison analyses, as well as 4,836 com- Leave benefits stand out in terms plementary tests (Radiology, with the close of 1997, the fund of volume with 15 million euros Spirometry, Blood pressure, has increased by 286 million (42.3% of the total), followed by etc.). Health Care, with 13 million euros, which is 19.9% in relative Finally, it should be mentioned euros (36.1%). Employment Aid terms. that following the guidelines should also be highlighted as it established by the Law covering has fallen to 1.1 million euros, the Prevention of Occupational with a surplus of 15 million Equity Fund Hazards and the Prevention Ser- euros generated due to the In millions of euros vice Regulations, with the collab- excellent performance of 1,721 oration of a number of co-opera- employment in the co-opera- 1,436 tives associated with Lagun-Aro, tives. 1,204 a joint Occupational Hazard The benefits for Retirement, Wid- Prevention Service was set up in owhood and Invalidity, which 1998. This service is a true pilot have to be guaranteed for long experience to better avoid haz- periods of time and for a large ards in the co-operatives and to number of members, are be able to respond more effi-

financed by reserves to guaran- 1996 1997 1998 ciently in the field of occupation- tee the corresponding pensions. al hazard prevention. ■

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FINANCIAL GROUP

Seguros Lagun-Aro Seguros Lagun-Aro Vida

998 was a satisfactory year In Life Insurance, which covers the Cruces (Baracaldo) and Ondár- for Seguros Lagun-Aro and market for life insurance and roa. This now takes our chain of Lagun-Aro Vida, both from combined retirement and savings outlets of our own to a total of 1the point of view of new policies products, turnover totalled 37 47, in addition to the 256 and profitability, and in the area million euros, affected by the fall branches of Caja Laboral, on of Total Quality management. in interest rates and uncertainties the basis of the Banking-Insur- Income obtained from insurance regarding taxation, finally ance agreement. 16 new mem- premiums and financial income cleared up by the new income tax bers of staff were also taken on, totalled 127 million euros, for system which will come into force taking the total workforce to 215 both companies. in 1999. In Traditional Life Insur- people at 31.12.98. ance, mainly regular premiums, In General Insurance, there was a •The company was awarded turnover accounted for 14 million 4.4% increase in premiums, tak- ISO-9002 certification by euros, which was an increase of ing turnover to 41 million euros. AENOR, for its car insurance 25% over 1997. There was an increase of 9.1% in activity. Seguros Lagun Aro is the number of policies, with a Other events worthy of mention, the first insurance company in total of 166,000 policies now included in the current Strategic Spain to be awarded this certi- issued. Plan, were as follows: fication. ■ •The opening of five new outlets in Ermua, Deusto, Usánsolo,

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Industrial Group

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INDUSTRIAL GROUP

he favourable economic situation in 1998 Total Sales International Sales T led to a substantial In millions of euros In millions of euros boost in industrial activity, with 2,353 1,104 2,067 increases in production in the 938 1,754 order of 5.5% in Spain as a 777 whole and 7.6% in the Basque Country. MCC’s Industrial Group maintained its order books and use of production capacity at high lev- 1996 1997 1998 1996 1997 1998 els during almost all of the year, with a certain amount of decel- eration in demand being felt towards the end of the year. This Investment Workforce was a reflection of less econom- In millions of euros ic growth at the world level and 19,585 18,797 the weakening of the dollar 189 17,356 155 compared to the first half of the

year. 106 The main achievements as far as the Basic Corporate Objectives are concerned were as follows: Customer Satisfaction. In 1998 work continued on the 1996 1997 1998 1996 1997 1998 progressive implementation of the Corporation’s Management model. The aim of this model is 1998 saw the total of compa- its, with profitability over sales in to procure customer satisfaction nies with ISO 9000 certification the order of 6%. together with the satisfaction of reach 68, with 24 more in the the workforce and good eco- The divisions that performed process of achieving it. nomic performance, based on best in this regard were the self-evaluations using the EFQM It should also be highlighted Automotive division, due to the methodology, which has already that, in order to optimise cus- strong increase in car sales of been applied in 67 of this tomer service, some co-opera- 17% in Spain and 7% in Europe Group’s businesses. tives in the automotive sector are as a whole, and Industrial Equip- ment, where the coach body- Six co-operatives have also been setting up manufacturing plants work business performed espe- subjected to external evalua- close to where their customers cially well. The household tions, with two of them joining are located, specifically in Goods division also had a very the 400 Club, which under the Saragossa and Brazil. sponsorship of the Basque Qual- good year, with substantial ity Foundation consists of those Profitability. The high level of improvements in profitability in companies scoring more than production activity maintained spite of having undertaken a 400 points in the EFQM evalua- by this Group in 1998 led to a costly internal reorganisation tion. significant 25% increase in prof- process.

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INDUSTRIAL GROUP

Internationalisation. The of business investment and the tives. A lot of attention was also problems existing in different construction of homes. paid to environmental manage- areas of the world like Asia, Rus- ment, by means of diagnoses The investments tackled by this sia and Latin America did not and the implementation of man- Group in 1998 also stand out. prevent this Group from achiev- agement systems. Four co-opera- These accounted for 189 million tives achieved environmental ing international sales, the sum euros, which is a 22% more management certification to total of exports and sales gener- than the investment figures for ISO-14.001. ■ ated from production plants 1997. The strength of demand, abroad, of 1,104 million euros for both capital and consumer in 1998. This figure is an goods, integration in the EMU increase of 18% on that record- and low interest rates were the ed in 1997 and accounts for determining factors in this 47% of total sales, an increase increase in investment. of two points compared to 1997. At the same time, employment also rose, with the workforce of At the end of last year, the Indus- the Industrial Group increasing trial Group had 17 manufactur- by 788 people. This is 4.2% ing plants abroad, with impor- higher than the figure at the start tant plans for new plants to be of the year and takes total jobs located mainly in the Mercosur in the Group to 19,585. area. Worker Participation. In The internationalisation process 1998 a lot of work was done to is being complemented locally improve internal communication, with four important joint ventures as it is considered a key element with international partners and for social cohesion in a joint cor- corporate support from three del- porate project. Forums on com- egations in China, Brazil and munication-information were India, together with trading com- therefore held with the participa- panies in Iran, Colombia and tion of 30 co-operatives, month- Indonesia. ly MCC information sheets start- Development. The developed to be distributed and the ment of the Industrial Group has corporate Intranet MCCnet been significant over the last few received a considerable boost. years, with turnover and equity Likewise, needs were diagnosed having doubled in five years. and training plans established Turnover in 1998 accounted for for all the Divisions, with a Man- 2,353 million euros, with an agement Development System increase of 13.8% compared to drawn up on the basis of areas 1997. The most dynamic divi- of competence. sions were Industrial Equipment, With regard to the prevention of with a considerable increase of occupational hazards, the haz- 37%, followed by Machine ards were evaluated at 22 work Tools (28%) and Construction centres and prevention system (23%), in line with the strength implemented a in 5 co-opera-

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Automotive INDUSTRIAL GROUP

he turnover investment of 8 million of the Divi- euros is going to be sion increased with another Tincreased by 12% 9 million euros over the and its international period 1999-2000. sales by 18%, in a In June, Maier inaugu- year characterised by rated the new Ferro- a good level of prof- plast plant, in which it itability, job creation is the majority partner, and a strengthening in the Galician town of of the strategy for col- Porriño, with an invest- laboration with other ment of 8 million groups to develop euros. Its main cus- joint projects, espe- tomer is Citroën in cially in the interna- Fagor Ederlan Vigo, as well as tional sphere. Batz do Brasil, which will produce Renault, Nissan and Seat. The In this context, the Automódulos jacks, pedal units and brake company provides employment company was set up to manufac- levers starting in April 1999. for 200 people and produces ture complete axles. It began Other projects linked to the activi- plastic injection moulded parts: activities with a project in the ties of Fagor Ederlan, Maier and demisters and fluid ducts. town of Borja, in the province of Cikautxo in Brazil are also being In September, Cikautxo inaugurat- Saragossa, with Opel as its main studied. These will probably mate- ed an injection moulding plant in customer. The following firms rialise over the next two years. Saragossa and was awarded the have a holding in this company: This boost to the internationalisa- prize for "Best Pipework Supplier" Gestamp Automoción, 40%; tion process has been accompa- by the Volkswagen Group. MCC, 40% (Mondragón Automo- nied by a significant investment ción, Fagor Ederlan, Batz and Finally, Mapsa decided to invest effort on the part of the compa- MCC Inversiones); and Gamesa 19 million euros over the three- nies in the Division. Fagor Ederlan Automoción, 20%. year period 1998-2000. The has initiated important projects company plans to double sales The strategic alliance with Game- accounting for investments of 34 and exports and achieve produc- sa for the development of industri- million euros, among which the tion of close to two million wheel al automotive activities in Merco- following stand out: a 50% rims in the year 2000. ■ sur was of singular importance. increase in the capacity of the alu-

This led to the subsequent creation minium die-casting plant and serv- Juan María Uzkudun of the Promoauto company, with ing as the global supplier for the MCC Vice-president its headquarters in the province of Corsa 2000, both in Europe and Chief Executive - Automotive Alava and in which Gamesa and America. MCC Inversiones each have a The latter has already led to the 50% holding. setting up of a company in Borja Promoauto was set up with an from where the front suspension In millions of Euros equity of close to 72 million euros. column will be supplied to the 1997 1998 This figure includes the companies Opel plant in Figueruelas from the Sales 436 487 in which Gamesa Participaçoes last quarter of 1999. has a holding. Promoauto has FIT Automoción, in which the Internat. Sales 245 289 taken an 80% holding in this firm, German company Continental and the Brazilian investment fund has a 34% holding, MCC Inver- Centrus a 20% holding. siones a 33% holding and Fagor COMPANIES: The projects initially contemplated Ederlan a 33% holding, satisfac- Automódulos, Batz do Brasil, Batz Sistemas, Cikautxo, Fagor Ederlan, Ferroplast, by Promoauto are going to torily completed its first year man- Fit Automoción, FPK, Galdan, require investment in excess of 60 ufacturing brake systems for Volk- Luzuriaga Tafalla, Luzuriaga Usurbil, Maier, million euros. The first of these is swagen in Germany. The initial Maier Navarra, Mapsa and Promoauto.

18 Components INDUSTRIAL GROUP

he turnover In Electronics, Fagor thatof this Divi- Electrónica decided T sion incre- to invest more than ased by 3% and its 12 million euros over international sales by the three-year period 4%; with the latter 1999-2001. compa-accounting for 63% of investment is aimed total turnover. In the at developing a field of quality man- range of high value- agement, the fact added products in the Czech sub digital technology Zerco obtained ISO for receiving televi- 9000 certification is sion signals and set- worth highlighting. ting up new produc- This means that all the both for white goods and for tion cells. nies in the Division now have domestic water heating appli- This ambitious investment plan this international quality certifi- ances. comes on top of the one already cate. As part of the European FUSE carried out over the last three- In 1998 the investments of the programme, an electronic tem- year period to the value of 9 mil- Division accounted for 34 mil- perature control was developed lion euros, which enabled the production capacity of the clean lion euros, as part of the overall for application in electric cook- room for the manufacture of figure planned for the three-year ing appliances. An electronic chips to be extended by 1,250 period 1997-99 totalling 98 mil- energy controller system was m2 and the production of SMD lion euros. This investment is ear- also developed based on touch- marked for the development of semiconductor miniature formats control technology. new products, the adaptation of to be started up. products to new markets and the The White Goods activity was Fagor Electrónica, whose sales need to tackle the demands for characterised by a significant increased by 11% over the year, business development on the advance in the supply of elec- received special recognition in threshold of the new millennium. tronic components, in addition the field of quality when it was to electromechanical ones, both awarded the Silver Q based on At the organisational and busi- for washing and cooking appli- the EFQM European Quality ness level, the incorporation of ances. This provides a wide Management Model. ■ the Consonni co-operative into range of products that can easi- the Division stands out. This will José Mª Aldekoa ly be adapted to customer help to strengthen the Division’s MCC Vice-president presence in the tubular heating requirements. Chief Executive - Components element business. In the area of Household In the R&D area, within the Comfort, a new regulation and framework of the Science and control component was Technology Plan and as part of launchedThis for domestic heating in the Intek Programme, technolo- the European and North Ameri- gies and products were devel- can markets. During the year, oped in the field of digital TV. Orkli set up a new subsidiary in New sensors and microsystems Italy and a sales network of its COMPANIES: Consonni, Copreci, Copreci México, Eika, were also developed for appli- own in France for the Distribu- Embega, Fagor Electrónica, Matz-Erreka, cation in domestic appliances, tion business. Orkli, Tajo and Zerco.

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Construcction INDUSTRIAL GROUP

n a year in tional level, sales which the accounted for 52% of construction the total, with the fol- Isector in Spain was lowing projects stand- very dynamic, with ing out: the Tavira strong demand for market and the Engi- new homes, the neering building in refurbishment of old Oporto, both in Portu- ones and significant gal; the roof of a growth in civil engi- sports centre in neering, the sales of Cyprus and two roofs this Division incre- for the Aviano base ased by 23%. The in Italy. 28% increase in In the Handling sec- international sales Orona, lifts and escalators tor, Rochman built its also played a signif- new plant and boost- icant part. projects designed by architects of international fame. ed its exports in Europe and The incorporation into the Divi- Latin America. Biurrarena sion of the Catalan co-operative Among its most important pro- increased its sales by 36% and Ecotècnia, engaged in the jects the following stand out: the launched a new activity for the design, manufacture and main- Antel complex in Montevideo engineering and manufacture of tenance of wind-powered gener- with a building more than 160 industrial and urban waste con- ators and the promotion and metres high; the roof of the tainers and for the design and exploitation of wind farms Amiens football stadium and the construction of recycling plants. should be highlighted. extension to the Sollac steel plant in Fos-sur-Mer, both in In Construction Work and In Lifts and Elevators, Orona France; the roof of the Vista Ale- Materials mention should be continued its rise in the domestic gre Bullring in Madrid and the made of Lana’s investment plan market with its range of lifts, Santiago de Calatrava viaducts to the value of 13 million euros escalators and automatic doors. in the City of the Arts in Valen- for the two-year period 1999- The company’s most important cia. 2000, aimed at increasing pro- projects were carried out at the duction capacity and develop- Universidad Pública de Navar- Other important projects con- ing rustic furniture, with the ■ ra, the Cargo Terminal at Bara- tracted were: The Fume Purifica- creation of 50 new jobs. jas Airport (Madrid), the Audito- tion building for C.T. Avedore in Jesús Maiztegui rium in Oviedo and the south Copenhagen; the roof of the rail bypass in Bilbao. Feira Nova shopping centre in MCC Vice-president Sintra, Portugal; the Euskaltel Chief Executive – Construction On the international stage, the building in Zamudio; the Gal- markets of the European Union vanisation Tower for Aceralia in In millions of Euros performed really well, especially Avilés; the new galvanising France and Portugal. There was plant for Solmed in Puerto de 1997 1998 also penetration into new coun- Sagunto as well as for Arregui in Sales 163 201 tries in the Middle East like Vitoria-Gasteiz; the rebuilding of Lebanon and Jordan. However, the As Pías bridge in Ferrol and Internat. Sales 31 40 the crisis in Asia and Latin Amer- the building of the fourth bridge ica resulted in a slowdown in over the River Urumea in San these markets. Sebastián. COMPANIES: • Lifting systems: In Structures and Handling, Orona’s Spatial Structures busi- Orona. Urssa grew by 25% and its inter- ness built the roof for the Avilés • Structures and Handling: national sales accounted for Stadium, the Music Conservato- Biurrarena, KBE-Urssa, Orona, Rochman 38% of the total. The company ry in Santander and a large and Urssa. continued its policy of market dome in the Oceanographic • Construction Work and Materials: Covimar, Etorki, Lana and Vicon. segmentation and working on Park in Valencia. At the interna-

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Industrial Equipment INDUSTRIAL GROUP

n an excellent lent export perfor- year, in which mance, the figure I advantage doubling compared was taken of the to 1997. favourable economic In qualitative terms, situation in Europe the PRODESO com- and America for business development and pany was set up. Its consolidation, the aim is to promote the turnover of this Divi- internationalisation of sion rose by 37%. the training and International sales social development played a very impor- activities of MCC His magesty the king of Spain together with other personalities tant part as they at the inauguration of the “Century of Creation” exhibition. and especially Ale- increased by 77%. coop. This company The significant amount of invest- In the international sphere, it is has led to the development of ment of previous years was con- worth highlighting the start of the SENA project in Colombia. tinued (11% over sales) and a the production of coaches in Alkargo consolidated its busi- high level of profitability Brazil, the successful penetration ness project, by attracting obtained. into the difficult United States emblematic orders in the Span- In Leisure and Sport the rate market and the supply of 52 ish market and boosting its of change imposed on the busi- coaches to transport the teams exports, just the same as Osatu, during the World Cup finals held nesses was intensified, based Coinalde and the printing com- in France. above all on international expan- panies Elkar and Danona, which sion. Dikar maintained its 1998 was a landmark in the his- significantly strengthened their favourable position on the US tory of Irízar with the inaugura- technical and production capac- ■ market and Eredu had an excel- tion of the company’s new instal- ity. lent year with growth of 34%. lations in Omaiztegui. These Iñaki Otaño The company boosted its modern accounted for an investment of MCC Vice-president furniture activity, by strengthen- 18 million euros, and will Chief Executive - Industrial Equipment ing its presence in 26 countries. increase production capacity by 50% to enable 1,350 coaches a In millions of Euros Orbea confirmed its strategy of year to be produced. In the envi- 1997 1998 aiming at the medium and high ronmental management area, segments of the market, with a Sales 210 288 Irizar became the first European significant, stable presence in all company in its sector to be European markets, especially Internat. Sales 76 135 awarded the ISO 14.001 Cer- France and Germany. tificate. Components and Technical COMPANIES: In the same subgroup, the 25% • Leisure and Sport: Equipment exceeded all increase in Ederfil’s international Dikar, Eredu, Orbea, Shanghai Dikar expectations, with a 45% and Wingroup. sales and the 28% increase in increase in turnover, due mainly • Technical Components Urola’s turnover, mainly in pro- and Equipment: to the brilliant performance of Ederfil, Hertell, Irizar, Irizar Brasil, cessing, should be highlighted. Irizar Maghreb, Tianjin Irizar Coach and Irizar. This company increased Urola. its sales by 52% and doubled its Industrial Services also had • Industrial Services: Alecop, Alkargo, Coinalde, exports, which accounted for a good year, with a 33% Danona Litografía, Elkar, Oiarso, Osatu 58% of total turnover. increase in sales and an excel- and Prodeso.

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Household Goods INDUSTRIAL GROUP

n a year in total of the capacities which there of Vaillant and Fagor, was strong making the Bergara Igrowth in consumer plant the biggest in spending, this Divi- its sector in Europe. sion increased its In Furniture, sales of turnover by 19%, with the Office collection its international sales launched by Coinma accounting for 38% of continued successful- the total, and signifi- ly, and Danona con- cantly improved its firmed its leadership profitability. in exports among The integration of Spanish furniture man- Fagor Electrodomesticos Domusa, a company ufacturers, with 58% engaged in the production of achieving an average market of its production going abroad. boilers for individual homes, into share of 23%. In the internation- In Commercial Equipment, the Domestic Appliance sub- al area, in addition to strength- the sales of the subgroup grew group, is worth highlighting. This ening its presence in the markets by 32%, with exports playing a company has a consolidated of the European Union, especial- strong role with a 38% increase. position on the Spanish market ly in France, Germany, Portugal The take-off of Kide in the indus- and a growing presence abroad. and Great Britain, the company trial refrigeration market should increased its penetration in East- In Domestic Appliances, be highlighted. Fagor Industrial’s ern Europe, with a consolidation Fagor had a very dynamic year plant in Lucena, which manufac- in which the company achieved of its positions in the Czech tures commercial refrigeration a turnover in excess of 620 mil- Republic and Hungary and the appliances, amply exceeded the lion euros and grew significantly opening of a delegation in the expectations for its first year of both in the domestic market Ukraine. operation. This has led to an (16.5%) and the international In Argentina, an agreement was increase in its manufacturing market (23%). It also carried out reached with Mabe, for this Mex- capacity. ■ an internal reorganisation of its ican company to take a share- Jesús Catania plants, concentrating all the man- holding in McLean. The strategic MCC Vice-president ufacture of refrigerators in Mon- aim of the operation is to boost Chief Executive - Household Goods dragón and transferring the pro- the leadership of McLean in the duction of boilers and air Argentine market as a global conditioning equipment to manufacturer of domestic appli- In millions of Euros Basauri. ances and increase Fagor’s pres- 1997 1998 This dynamism was reflected in ence in the Latin American mar- Sales 638 724 the volume of investment, which ket.

exceeded 34 million euros, of In Morocco, the range of prod- Internat. Sales 223 277 which 10 million were ear- ucts manufactured was extend- marked for the extension to the ed, adding the production of washing machine plant, 15 mil- water heaters and washing COMPANIES: lion for innovation and the devel- machines to that of refrigerators, • Domestic Appliances: Cadore, Edesa, Extra Electromenager opment of new products and 5 thereby making Fagor the joint Fagofri, Fagor Electrodomésticos, Geyser million for the strengthening of market leader with a 20% share. Gastech and Mc Lean. foreign subsidiaries. • Furniture: Geyser-Gastech ended the year Coinma and Danona. In the domestic market, Fagor with an installed capacity of • Commercial Equipment: Fagor Industrial and Kide. consolidated its leadership by 800,000 water heaters, the sum

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Engineering and Capital Goods INDUSTRIAL GROUP

his Division grow significantly, recorded a with orders won from turnover Lear Corporation, Tsimilar to that of the Ford U.K. and Thera. previous year, with a In Die Making, the high level of prof- Group’s presence itability and a 14% was strengthened in increase in employ- the United States and ment. A lot of orders Germany with top were won in all the level customers. Aur- areas, with order renak supplied books totalling 200 moulds for the manu- million euros at the facturing of engine end of the year. Fagor Arrasate blocks to Chrysler, In Automation and Honda and Caterpil- Control, the decision was taken ing, is engaged in the design lar and won orders from new to merge Berriola with Fagor and implementation of structural customers like Kolbenschmidt, Automation, as the culmination wiring networks, local area net- Renault and Teksid. Batz contin- of co-operation which had been works and telephone systems for ued to have Volvo and Ford Ger- going on for many years. In R&D industrial and service compa- many as its main customers. the MC family of the Fagor 8050 nies. Finally, Fagor Sistemas recorded Interactive Numerical Control, In Forming Machinery robust growth of 53%, consoli- the new series of the 8055 CNC turnover was slightly lower than dated its activities in France that incorporates the LCD flat the record figures of 1997, with through the subsidiary Cima and monitor and the 8070 PC-based profitability at a good level and won orders from important com- CNC were developed. order books at excellent levels, panies like Eaton Ros, Rockwell, The international area continued with orders mainly from abroad. SNR and Valeo. ■ to play an important role, with Of the equipment supplied by José Luis Olasolo 65% of Fagor Automation’s sales Fagor Arrasate, the following going abroad –40% America, MCC Vice-president stands out: in the automotive sec- Chief Executive 38% Europe and 21% Asia- and tor, presses for Gestamp, Rover Engineering and Capital Goods the opening of two new sales and VW-Seat; in the domestic offices in New Delhi and Guan- appliance sector, several lines dong, thereby completing the 22 for the production of parts for sales offices in 16 different coun- General Electric, Mayc and the tries, in which 30% of the total Mexican company Vitro; in the In millions of Euros workforce work. iron and steel sector, cutting lines 1997 1998 Engineering and Consul- for Ugine, Tailor Steel, Eko Stahl Sales 226 216 tancy underwent growth of and Krupp-Hoesch. 27%, with a significant increase Fagor Arrasate also won impor- Internat. Sales 134 103 in profitability and a 13% tant new orders from Citroën, increase in highly skilled employ- Tower, Renault and Essa Palau in ment. As part of its expansion COMPANIES: the automotive sector; from Gen- plan, subsidiaries of LKS have • Automation and Control: eral Electric, Grupo Vitro and Berriola and Fagor Automation. been set up in Madrid, Galicia Mabe in the domestic appliance • Engineering and Consultancy: and Navarra and at the start of Diara, Enyca, LKS Consultoría, sector and from Acerinox, 1999, the new company LKS LKS Ingeniería, MSI, Ondoan and SEI Thyssen, Krupp and Contrasteel, Fagor. Intelcom S.L. will be set up. the biggest steel producer in • Forming Machinery: Aurrenak, Batz Troquelería, LKS Intelcom, in which LKS Inge- Egypt, in the iron and steel sec- Fagor Arrasate, P.I. Proin, niería and Enyca have a hold- tor. Ona Pres saw its business Fagor Sistemas, Cima and Ona-Pres.

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Machine Tools INDUSTRIAL GROUP

he year was taking the total to highly posi- more than 23 million T tive, with a euros. All the compa- 28% increase in nies in the Subgroup turnover and a 42% achieved a good increase in exports, level of profitability of and a high level of 6% over sales and profitability in all the increased employ- co-operatives of the ment by 7%, in a Division and the cre- clear process of con- ation of 7% new jobs. solidation of their New orders were won activities. in line with the fore- Danobat A small shadow was casts made, although cast over this highly in the last quarter of the year the ment and keeping a watch on positive picture by the crisis in trend started to change, with technology regarding two strate- Brazil, which clearly affected the expectations for 1999 being gic parts: the crankshaft and the expectations created in this enor- somewhat less favourable. camshaft, making it possible of offer complete solutions for the mous market, as a result of the In Cutting Machine Tools, manufacture of these key engine collaboration agreement signed 1998 was the best year in the his- parts. by Egurko/Ortza with the Italian tory of Grupo Danobat, with subsidiary of Giben. record turnover, a 50% increase Aeronautics is another sector that In terms of investment, that made in exports and a high level of is rising steadily within the activi- by Latz and Zubiola to increase investment, with extensions to ties of Grupo Danobat. In 1998 their production capacity, stands Goiti and work starting on impor- a turnover of 5 million euros was out. ■ tant extensions to the Soraluce achieved in advanced technolo- plant. gy grinding machines, for grind- Antonio Echeverría ing turbine blades and undercar- It was also a good year for new MCC Vice-president riages. Cheif Executive - Machine Tools orders, although they slowed down towards the end of the The order for the first machine for year, which concluded with the aeronautical sector in Japan order books totalling 77 million stands out for its importance. This euros. This guarantees just over order was for IHI-Ishikawajima 50% of the turnover forecast for and was worth 1.6 million euros. 1999. Germany once again Danobat grinding machines In millions of Euros headed the list of export orders incorporate the latest advances 1997 1998 with 25%, followed by France in grinding technology and pro- Sales 117 150 (12%), Brazil (10%), United duction control, and have won

States (8%) and Italy (7%). the trust of companies as impor- Internat. Sales 60 85 tant as: General Electric, Ameri- To strengthen the Group’s pres- can Airlines, British Airways, ence in the important automotive BWB, Delta Airlines, Swissair, COMPANIES: sector, a specific Management Sabena, IHI-Ishikawajima, Iberia • Cutting Machine Tools unit was set up for the whole Danobat, D+S Sistemas, or Casa. Estarta Rectificadora, Goiti, Lealde and Group. Its aim is to globally co- Soraluce. ordinate the sales networks Woodwork Machinery, • Woodwork Machinery, Tooling linked to this activity and take and Fixtures: Tooling and Fixtures Doiki, Egurko, Latz, Ortza and Zubiola. responsibility for sales manage- increased its turnover by 16%,

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Distribution Group

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DISTRIBUTION GROUP

998 was a very positive solidation and extension of busi- year for the Distribution Total Sales ness alliances, with a new agree- Group, as it improved its In millions of euros ment with the Vegonsa company, position in the markets in which it similar to that reached with Unide 1 2,995 operates and made advances in and Mercat at the end of 1997, compliance with the Basic Cor- 2,300 in order to create joint ventures to porate Objectives. 2,031 run supermarket chains. Likewise, the supermarkets of Grupo Distac Customer Satisfaction. In this in Catalonia were taken over, area a lot of work has been done thereby completing the Group’s on quality assurance, in the presence all over Spain. search for continuous improvement by drawing up quality man- In addition to this, in 1998 5 uals and implementing process 1996 1997 1998 new Eroski hypermarkets, 55 re-engineering in the whole of Cosnum supermarkets and 8 the supply chain. This has led to travel agency branches were a reduction in delivery times and also opened. guarantees the freshness of food Inverstment In millions of euros The promotion of new activities products. concentrated on commercial The store network was also mod- 217 catering and sports and leisure 199 ernised, with the refurbishment of stores, as well as the new co- four Maxi hypermarkets, the new 156 operative Unekel, in the Erkop store model implemented in subgroup, engaged in the pro- seven Eroski hypermarkets. duction and sale of rabbits. The launch of the new Consumer A considerable amount of growth brand should be highlighted. was recorded, with total sales of This name, strongly identified 2,995 million euros and material with the Group, is the one now 1996 1997 1998 and financial investment to the given to all own-brand products, value of 217 million euros. the consumer magazine and Worker Participation. The charge card. business alliances and opening Workforce Profitability. In 1998 there of new stores meant that the total was reactivation of consumer 20,182 workforce of the Group increased spending and the Distribution by 6.891 people, taking the total Group achieved an excellent to 20,182 by the end of the year.

30% increase in sales. More- 13,291 over, the biggest increases were 12,377 An important aspect during the obtained in the non-food activi- year was the start-up of Gespa, a ties (leisure and sport, books and general partnership that enables music, textiles, etc.) which offer the workers of Erosmer Ibérica to higher margins. This led to a participate in the capital, the 42% increase in total profits. management and the profits. The Distribution Group operates 1996 1997 1998 Training was also intensive, both mainly in Spain. However, it is as far as new workers are con- also present in France, through cerned, and concerning the ing group, located in Denmark preparation of the workforce for its subsidiary Sofides, which has ■ 3 hypermarkets and a chain of and which has offices in Hong- adaptation to the euro. 19 supermarkets. Kong. Constan Dacosta The Group is also a member of Development. In 1998 advan- MCC Vice-president the Intergroup non-food purchas- ces continued to made in the con- Chief Executive – Distribution Group

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DISTRIBUTION GROUP

Eroski Eroski Bilbondo

rupo Eroski is made up ment to Savings and Quality, by workers in the capital, profits of the Eroski and Con- means of a general, constant low and management of Erosmer. G sum co-operatives, price policy and a commitment Nine out of every ten workers which operate via Cecosa as to quality as far as fresh produce have joined the scheme, and the partners in Erosmer S.A., in is concerned, from when it is various representative bodies for which the following are part- chosen and during its processing the close to 1,300 workers were ners: ONCE, Argentaria, Lagun- through the logistics chain. set up during the year. Aro, BBK and the Italian co- The Purchasing Centre now pur- This involvement of the workers, operatives GDE. chases a total of 3,600 million in addition to putting into prac- The agreements reached with euros of goods, placing the Group tice the principles of integration Mercat and Unide and the sub- at the top of the list of the compa- and participation, characteristic sequent alliance with the Gali- nies operating in Spain, especially of co-operatives, is a business cian company Vegalsa have con- regarding fresh produce. Among value that has a direct effect on solidated Grupo Eroski’s the aims of purchasing manage- the level of quality and customer leadership in the world of Span- ment is the promotion and com- satisfaction. ish food retailing. Its Consum mercialisation of local and region- Customer service also includes, supermarket chain is now the al products, making Grupo Eroski for example, the continuous car- largest in Spain and covers prac- the leading sales network for rying out of audits, home deliver- tically the whole country. Spanish products. ies, the incorporation of new The new CONSUM supermarket Gespa was set up in order to products like home-made cakes concept is based on a Commit- promote the participation of the or vacuum packed cold meats or

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DISTRIBUTION GROUP

point of reference for Consumer organisations in Spain. In the consumer education field, 220,000 people participated in different events, in a year characterised by the growing spe- cialisation of these modules. As far as its commitment to the environment is concerned, Grupo Eroski practised an active policy in favour of the envi- Eroski laboratories ronment and col- laborated in the use of advanced technolo- With the incorporation of new numerous activities in support of gies like videoconferencing for companies into the Group, the the handicapped or those in the sale of computer products. Consumer brand will be on sale need, as well as in cultural or in more than 1,000 stores and local sporting events. ■ Mention should also be made of available to six million con- the implementation of the Criti- sumers. cal Point Risk and Control Analy- sis to ensure the quality of fresh Likewise, the new Consumer produce, the drawing up of Card maintains all the features quality manuals for the dispatch of its Eroski predecessor, consol- depots, the continued success of idating it as the leading charge programmes like "the natural card in the food sector. Its fea- taste" for beef, recognised as a tures are complemented by those mark of quality by the Ministry offered by the Travel Club card, of Agriculture or the more than of which the Group is a founder 200 tasting panels used to eval- together with other companies of uate the quality of Consumer recognised prestige. own-brand products. In 1998 44,000 people became The historic commitment of Eros- consumer members, taking the ki own-brand brands to the con- total to 385,223. A lot of work sumer has been strengthened in consumer education and infor- with the new Consumer prod- mation is aimed at these mem- ucts, with a more extensive bers. The Consumer magazine, range, offering 1,500 high qual- with a monthly circulation of ity items at advantageous prices. 300,000 copies, is today a

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DISTRIBUTION GROUP

Erkop

998 was marked by Erkop's As far as new activities are con- tion and sale of rabbits. internal consolidation pro- cerned, two new companies In the Quality area, work started cess, the extension of its were set up in 1998: Comisla- on the assessment of internal 1commercial activity areas, the gun, a company set up in collab- implementation of programmes oration with the Valencian Co- processes using EFQM, and on for the internal assessment of operative Business Group to offer the systematic measurement of processes and the notable catering services in the Levant customer satisfaction with the ser- advances achieved in turnover, region and the new co-operative vices offered by Erkop co-opera- which rose by 16%. Unekel, engaged in the produc- tives. ■

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Research, Training and Education

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RESEARCH

Ikerlan

n 1998 Ikerlan new businesses. This project has capital goods, domestic appli- obtained UNE-EN-ISO the support of MCC and has ance, electronics, automotive I 9001 certification, been set in motion after a pre- and energy sectors. which guarantees the services liminary study carried out with A singular project has also been the Centre provides in terms of MIT – Massachusetts Institute of set in motion to transfer Ikerlan's technological research projects Technology- and sponsored by management and organisation- for the development of products the Basque Government. al model to the Colombian insti- and the improvement of produc- In 1998, Ikerlan achieved a tution SENA, within the frame- tion processes in the areas of work of a wide-ranging total income of 9 million euros, Electronics and Control Systems, collaboration agreement of which 3 million, mainly from Design, Production and Energy between MCC and SENA. technologies. Another important the Basque Government, served At the European level, the centre event was the transfer of the to fund generic and strategic participated in three new R&D Energy Division to the Alava research projects. projects within the IV Frame- Technological Park. Contracted research and devel- work Programme. The European The work carried out to launch opment, the main indicator of Commission named Ikerlan as a the Microsystems activity also technology transfer to industry, "Technology Transfer Centre" stands out. The expectations for generated income of 6 million for the Basque Country in the this activity in the future are euros, mainly from projects car- area of electronics, as part of high, with a lot of potential for ried out for companies in the the FUSE programme. ■

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RESEARCH

Maier Technology Centre (MTC)

TC is a Technolog- ical Centre spe- M cialising in the research and development of heat-formed plastic parts and units for the automotive, domestic appliance and consumer electronics sectors. It works on the basis of Concur- rent Engineering in close collaboration with its clients, thereby consolidating its position as a development supplier, in line with the demanding requirements of industry. MTC's activities include design, simulation, manufacture of injection moulds, industrialisation of parts and the researching of new Ideko technologies applicable in its 998 was a big step forward them easier to use and avoiding area of work. Among its main achievements in 1998, penetra- in the consolidation of Ideko downtime. tion in new important clients like as a technological leader in In Information Systems, Ideko Jaguar and Magnetti Marelli 1the Machine Tool sector, in which completed its team engaged in stands out, as does the growth it has taken on the leading role in computer development and start- experienced in existing clients in the drawing up of the Product ed an ambitious Information Sys- the automotive sector. and Technology Plan for 1999- tems Reengineering project for 2001 for all the companies it the group of companies it pro- The centre has a staff of close to works with. As a result of this vides services for. 100 people, made up mainly of Plan, different projects have engineers. In 1999, it is hoped Work also continued on Total been set in motion to find, test that another 20 people will be Quality management, with and apply new technologies. taken on, in order to cover the advances made in the processes needs deriving from the strong In product improvement, special defined as strategic and the Pro- growth of the Maier Group. ■ emphasis was given to the proto- ject Development Process estab- type workshop, with new lished as a priority. machines being researched for Ideko's total income came to 3 high speed machining. Likewise, million euros. 63% correspond- work continued on the incorpo- ed to projects for companies in ration of advanced Control Sys- the sector and the rest to medi- tems for machine monitoring and um- and long-term research pro- troubleshooting, thereby making jects. ■

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TRAINING AND EDUCATION

Mondragón Unibertsitatea (MU)

his first academic year 1997-98 has to be T rated as very positive. The centre officially became a university and the curriculum was completely changed without teaching activities being affected in any significant way. The bases of the organisational structure with which the Universi- ty is going to operate were also established, starting from the principle that the already existing faculties have an initial structure of their own, together with the get, with numerous projects whose task it is to research and need to have a number of com- developed jointly with Ikerlan promote the values of the Mon- mon elements which are as sim- and Ideko. dragón Co-operative Experience ple and as efficient as possible. and the University Automotive This research dimension is a fun- Centre (AUZ), whose task it is to This first year of operation of the damental part of the activities of MU has also meant the creation Mondragón Unibertsitatea. This direct training and R&D of the governing and manage- was clear from the 53 generic resources to companies in the ment bodies of the University, the projects carried out during its automotive sector. Governing Council and the Man- first academic year, several of From a more academic point of agement Council, as well as a them as part of European pro- view, 13 courses were started in number of working commissions grammes like Brite-Euram, Esprit, Engineering, Business Science, for the University as a whole. Eureka etc. and the 131 con- Humanities and Educational Sci- tracted research projects with In quantitative terms, the targets ence and international pro- local leading-edge companies. set were fully met. There were grammes were boosted. In this 2,418 students in total, of which Another peculiarity of MU is the field, 80 students from Mondrag- 2,219 corresponded to the first role given to In-service Training, on Unibertsitatea studied second two levels and 199 students to with numerous training pro- and third level in 21 universities the postgraduate levels. Signifi- grammes having been carried in France, Switzerland, Great cant efforts were also made to out like the Masters in Production Britain, Canada and United boost third level studies in col- Management, Masters in Com- States. Likewise, 43 foreign stu- laboration with other universities, pany Management, Advanced dents studied at MU and worked with 37 lecturers and scholarship Course in Environmental Man- in local companies. ■ holders immersed in this process. agement, Advanced Course in Product Engineering, etc. Engineering The total budget for this first academic year totalled 14 million For a University like that of Mon- The Higher Polytechnic School euros, not including the invest- dragón, based on co-operative offers first level studies with a ment heading which accounted philosophy and with close links common first course and two spe- for 1.5 million euros. Research, to business activity, the setting up cialist courses, aimed at offering especially that carried out in col- of two centres were of crucial degrees in: Industrial Technical laboration with local industry, importance: the University Co- Engineering in Mechanics, Sys- accounted for 10% of the bud- operative Studies Institute (KUI), tems Computing, Industrial Elec-

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TRAINING AND EDUCATION

tronics and Industrial Design. degrees in Infant Education, in Centres, in order to be able to During this first academic year, Special Education and specialis- collaborate in the development of 1,336 students studied these ing in English. There were a total training programmes promoted specialist courses and 278 stu- of 316 students studying these by the Basque Government. courses with 50 graduates. dents graduated. It also participated, together A second level offers the possi- The second level, lasting four with the Department for Action bility of obtaining an engineer- years, offers a degree in Busi- Abroad of the Basque Govern- ing degree in Industrial Organi- ness Humanities while the third ment and Alecop, in the devel- sation and Automatics and level offers postgraduates the opment of a co-operation pro- Industrial Electronics. In 1997-98 possibility of doing a Doctorate ject in Bogotá, by sending 154 students studied these cours- in Business Humanities. There lecturers for teaching and advi- es with 39 graduating. were 20 people doing postgrad- sory purposes. uate courses. Finally, the third level offers the During the academic year 1997- possibility of obtaining an Engi- 98 Txorierri had 461 students neering Doctorate in Industrial CIM within the state system. 4,601 Organisation and an Engineer- (Centro de Idiomas hours of training were given in ing Doctorate in Automatics and Mondragón) 20 different courses, in the Industrial Electronics. There were sphere of occupational and in- 155 students studying postgradu- uring the academic year service training. ■ ate courses. 1997-98 the centre had 1,580 students. The DCompany Division intensified its Business Science Lea-Artibai presence in the Basque The Business Science Faculty Autonomous Community, with an n academic year 1997- offers first level studies lasting annual increase of 15%. 98, 298 students stud- three years, for a Technical Engi- ied at this centre. 263 The Academic Division was neering degree in Management Iparticipated in training cycles Computing. For this first acade- appointed to give the optional language classes for Mondragón and 117 studied Polymer Engi- mic year, including the first level Unibertsitatea and reached an neering. of Business Administration and agreement with the University of Management, 313 and students At the international level, there Cambridge for students to sit its were registered and 102 gradu- was an exchange of students exams at CIM. ated. with German and Swedish col- An important agreement was leges, collaboration projects with The second level studies last four signed with the Bilbao company Venezuela and Argentina, steps years and lead to a Degree in Didaktiker, which led to the were taken to enable students to Business Administration and opening of two centres in Vitoria work in European companies Management. There were 100 and Bilbao for the teaching of during their studies and two lec- students registered in 1997-98. English and Basque by means of turers went on secondment to The third level leads to a Doctor- a multimedia system under the European Technological Centres. ■ ate in Business Administration name of bai & by. In the business field, the Oste- and Management. There were olan S.L. project was consolidat- 24 postgraduate students. Txorierri ed and Moltek and Servicad Politeknikoa went from strength to strength. Humanities Two new projects were started The Faculty of Humanities and n 1998 this Centre was up for the recycling of organic Education Science offers as level included in the Network waste and for the microbiologi- courses, lasting three years, I of Professional Training cal analysis of preserves. ■

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TRAINING AND EDUCATION

Otalora

n this Co-operative and In Co-operative Training, eight were held about the successful Management Training courses were given for members experiences of Irizar and Maier. Centre, as far as Man- I of Governing Councils and Social In the Sociological Studies area, agement Training was concerned, Councils, attended by 226 peo- activity centred on the assessment in 1998 two general Company ple, in addition to various training of the "Satisfaction of Personnel" management courses were given programmes for new co-operative in 30 co-operatives in accordance together with a number of specific members. with the European EFQM model. seminars with the participation of more than 200 people. A Man- In terms of Co-operative Dissemi- In Training Management, support agement Development System nation, relations were strength- was provided for the co-opera- was also developed in accor- ened with a number of Universi- tives in detecting their training dance with the Corporate Man- ties, especially in the Basque needs, in drawing up training agement Model. Three "Ikas" Autonomous Community and plans and processing possible courses for postgraduates were Navarra, and 811 visitors espe- subsidies. ■ also given for 60 people. cially from Latin America, Asia, Eastern Europe and, of course, Spain were attended to. In Internal Corporate Communica- tion, the TU Lankide magazine continued to come out on a monthly basis, and two forums

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Financial Statements and Trading Account

Organisational Structure

Company and Management Bodies

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MCC Financial Statements and Trading Account as at 31-12-98

This part of the Annual Report offers an overall composition of Value Added generated overall view of Mondragón Corporación Cooperativa, by within the Corporation. presenting the Corporation’s financial statements To obtain these integrated statements, balances and trading account at the end of 1998. Likewise, reflecting operations between companies have a comparison of these figures with those for the been offset, and internal economic movements previous year shows year-to-year developments. have been removed, in order to delimit the actual The information given refers to the integrated Bal- situation of MCC as far as its outward appearance ance Sheets for the last two years, as well as the is concerned.

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

31.12.97 31.12.98 Annual Variation HEADING Amount % distr. Amount % distr. Amount %

ASSETS Fixed 1,797 19.4 2,022 17.7 225 12.5 Current 7,468 80.6 9,406 82.3 1,938 25.9 TOTAL ASSETS 9,265 100.0 11,428 100.0 2,163 23.3

LIABILITIES Equity 2,367 25.6 2,843 24.9 474 20.0 External Partners 181 1.9 221 1.9 40 22.4 Long term creditors 1,074 11.6 1,037 9.1 (37) (3.5) Short term creditors 5,641 60.9 7,327 64.1 1,686 29.9 TOTAL LIABILITIES 9,265 100.0 11,428 100.0 2,163 23.3

MCC's Balance Sheet at 31.12.98 showed a total The most outstanding features of each heading of volume of assets under administration of close to the balance sheet of Mondragón Corporación two 11,428 euros, an increase of 2,163 million Cooperativa as at 31.12.98 are detailed below: euros over the year, which is 23.3% in percentage terms. Fixed Assets This growth was mainly due to the Financial Group, whose balance increased by 1,679 million euros, At the end of 1998, MCC's fixed assets totalled as a result of the considerable increase in assets 2,022 million euros, having increased by 225 administered by Caja Laboral and Lagun-Aro. million euros (12.5%) during the year.

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Total investment made during the year accounted 1998, mainly in the customer loan and fixed for 425 million euros, which is an increase of 13% income securities portfoilo headings. on the figure for the previous year. Depreciation applied in 1998 rose to 201 million euros, which is an increases of 16% compared to 1997. Equity In 1998, MCC's Equity was considerably strengthened, registering an increase of 474 million euros Current Assets (20%). This increase was due to the favourable The current assets heading is the largest element of economic performance of the Corporation, which the net worth of the Corporation and that which led to a high level of profitability for the year, and underwent most growth in 1998, having increased to the demanding policy for capitalisation of sur- by 1,938 million euros (25.9%). plus, which is mainly reinvested to self-finance development. 87% of this figure came from the Financial Group, as it is under this heading that Caja Laboral’s bank The following table summarises the performance investment and Lagun-Aro’s investment portfolio in 1998 of the main accounts which make up are to be found. Both increased significantly in Equity.

Mondragón Corporación Cooperativa Equity (millions of euros)

31.12.97 31.12.98 HEADING Amount % distr. Amount % distr.

Share Capital 491 20.7 600 21.1 Equity Fund of Lagun Aro (*) 902 38.1 1,111 39.1 Reserves 976 41.2 1,132 39.8 EQUITY 2,369 100.0 2,843 100.0 (*) Excluding Matured Liabilities and the part corresponding to external partners.

External Partners Long-term liabilities The opening of new channels of expansion for The balance of MCC funding from third parties MCC, both on the domestic market and on the inter- with a period of maturity of more than one year national market, implies a gradual increase in the underwent a slight fall of 3.5% in 1998, totalling participation of external partners in joint ventures. 1,031 million euros at the end of the year. There- fore, it only accounted for 9.1% of liabilities at the The capital holdings of these external partners are end of the year, which was a slight fall. mainly to be found in companies included in the consolidated statements of the industrial co-opera- 66% of this figure corresponds to the Financial tives and the distribution sector, to which should be Group, and pertains to term deposits belonging to added the proportional part of members of Lagun- Caja Laboral savers and to Lagun-Aro's Matured Aro from outside the MCC co-operatives: The total Liabilities Reserve Fund. The latter accounted for for external partners accounted for 221 million 453 million euros at 31.12.98 and serves to meet euros at 31.12.98, an increase of 22.4% over the obligations contracted with members receiving year, with its percentage over liabilities remaining capitalisation benefits. stable at 1.9%.

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Short-term liabilities VALUE ADDED This balance sheet heading increased by 1,686 To complete this commentary on MCC's Balance million euros (29.9%) during 1998. 81% of this Sheet, the following table is offered in which a increase was down to the Financial Group, main- comparison is made of the financial statements for ly due to new savings attracted by Caja Laboral the last two years, after being structured on the and occasional borrowing with short-term invest- basis of the composition of Value Added. ment objectives by Lagun-Aro. The overall Value Added generated by MCC in Mention should also be made of the growth in off- 1998 increased by 14.6% to total 1,843 million balance sheet savings schemes like combined euros. banking-insurance products, unit trusts and pension and welfare funds, whose overall balance The biggest part of this Value Added was generat- came to 2,549 million euros at the end of 1998, ed by the Industrial Group, which with 775 million after an increase of 349 million euros over the fig- euros accounted for 42% of the total. It was close- ure for 1997. ly followed by the Financial Group with 36%, with

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

1997 1998 Annual variation HEADING Amount % distr. Amount % distr. Amount %

Value Added 1,608 100.0 1,843 100.0 235 14.6 Personnel Costs (713) (44.3) (846) (45.9) 133 18.6 Internal Yield 895 55.7 997 54.1 102 11.4 Financial Costs (219) (13.6) (198) (10.7) (21) (9.5) Cash-Flow 676 42.1 799 43.4 123 18.1 Depreciations (173) (10.8) (201) (10.9) 28 15.7 Operating Profit 503 31.3 598 32.5 95 18.9 Transfers and other Income (114) (7.1) (103) (5.6) (11) (9.0) Lagun-Aro Tech. Int. Rate (75) (4.7) (81) (4.4) 6 7.7 Surplus on year 314 19.5 414 22.5 100 31.7

the remaining 22% corresponding to the Distribu- The downward trend in interest rates in 1997 was tion Group which, with its strategy for growth, reflected in MCC’s accounts, as Financial Costs fell increased its share by 3 points compared to 1997. significantly by 14.1% compared with 1997, in spite of the notable increase in volume of business Personnel Costs rose by 18.6%, due to the consid- recorded in all areas of the corporation. This fall erable creation of jobs in MCC. Wages accounted means that they account for 13.6% of Value for 45.9% of the Value Added generated, which Added, 4.9 points less than in 1997. This was due was an increase of 1.6 points compared with to new companies joining the Corporation, mainly 1997. in the Distribution Group. This means that the com-

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parison between both years is not completely Non-trading income consists mainly of transfers to homogeneous. provisions, minority partner interests and other The incorporation of the Spanish economy into the non-trading income, and actuarial adjustments if EMU led to a continuation in the fall in interest required. The figure for 1998 came to –103 mil- rates in 1998, which has been reflected by a 21 lion euros, which was 9% lower than the figure for million euro cut (-9.5%) in MCC’s Financial Costs 1997. compared to 1997, in spite of the increase in Likewise, the trading profit is reduced by the appli- turnover recorded in all areas of activity. This fall cation of the technical interest rate, which was has led to a decrease of 2.9 points in the absorp- 5.6% at the end of 1998, to Lagun-Aro’s reserves tion of Value Added by Financial Costs compared in order to restate actuarial liabilities. As a result, to 1997, taking the figure to 10.7%. the application of this technical interest rate meant The depreciations recorded by MCC in 1998 a decrease of 81 million euros in the profits for totalled 201 million euros, with year-to-year 1998, which is 7.7% more than in 1997. growth of 15.7%, which is explained by the high level of investment in the last few years. Although Therefore, the Final Surplus on the year totalled the Industrial Group still accounts for most of the 414 million euros, which is a significant improve- depreciation (47% of the total), the Distribution ment of 31.7% over the figure recorded in 1997. Group has significantly closed the gap, with its This represents 22.5% over the Value Added gen- depreciations now accounting for 43% of the total. erated, which compares very favourably with the figure of 19.5% achieved in 1997. As an effect of the behaviour of costs, a Trading Profit of 598 million euros was achieved, which The following table briefly summarises how this was 95 million euros (18.9%) higher than the fig- Surplus has been distributed, compared with ure achieved in 1997. 1997.

Distribution of Mondragón Corporación Cooperativa surplus (millions of euros)

31.12.97 31.12.98 HEADING Amount % distr. Amount % distr.

Company Tax 20 6.5 26 6.2 Education and Coop. Prom. Fund 19 6.0 24 5.8 Interest on Capital Contributions and Monetarised Dividends. 42 13.2 45 11.0 Capitalised Profit 234 74.3 319 77.0 Total Surplus on Year 314 100.0 414 100.0

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

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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 STANDING COMMITTEE OF THE CONGRESS GENERAL COUNCIL Management President: Otaegui, Juan Mª President: Cancelo, Antonio Bodies Vice-president: Salegui, Francisco Vice-president: Aldekoa, José Mª Members: Andrés, José Luis Catania, Jesús Anduaga, Juan Jesús Dacosta, Constan Ansoategui, Juan José Echeverría, Antonio Arabaolaza, Juan José Maiztegui, Jesús Arrieta, Juan José Olasolo, José Luis Domaica, Ramón Otaegui, Juan Mª Gantxegi, Javier Otaño, Iñaki Gaztañaga, J. Domingo Uzkudun, Juan Mª Herrera, Miguel Lakuntza, Ignacio Officers: Gárate, José Ignacio Larramendi, José Mª Goienetxe, Jesús Mª Markaide, Agustín Herrasti, Jesús Mª Muruamendiaratz, Martín Laspiur, Miguel Angel Valero, Luis Retegui, Javier

General Secretary: Erdocia, Javier General Secretary: Erdocia, Javier

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GENERAL COUNCIL

José Mª Aldekoa Jesús Catania Constan Dacosta

Antonio Echeverría Jesús Maiztegui José Luis Olasolo

Iñaki Otaño Juan Mª Uzkudun José Ignacio Gárate

Jesús Mª Goienetxe Jesús Mª Herrasti Miguel Angel Laspiur

Javier Retegui Javier Erdocia

Juan Mª Otaegui Antonio Cancelo President of the President of the Congress General Council

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44 MCC/Memoria 98/inglés 17/6/99 12:52 Página 45

List of MCC Companies

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List of MCC Companies

AUTOMODULOS LUZURIAGA Parque Tecnológico, USURBIL Ed. 103 C/ Txiki-Erdi 48170 Zamudio 20170 Usurbil (Bizkaia) (Gipuzkoa) Tel.: 34 944 209 370 Tel.: 34 943 370 200 Fax: 34 944 209 369 Fax: 34 943 365 564 Mcc Inversiones, MCC Automoción, Activities: Fagor Ederlan and Brake housings and Batz have a 40% suspension arms. holding. MAIER Financial Group Industrial Group Activities: Pol. Ind. Arabieta, s/n Complete axles for cars. Apdo. 103 48300 Gernika Banking Insurance CIKAUTXO FIT AUTOMOCION (Bizkaia) Barrio San Juan, s/n Tel.: 34 946 259 200 ARO LEASING LAGUN ARO Bº Magdalena 2, B 48710 Berriatua Apdo. 80 Fax: 34 946 259 219 C/ Gran Vía 35-6º VIDA 20570 Bergara E-mail: C/Gran Vía 35-1º (Bizkaia) 48009 Bilbao Tel.: 34 946 133 000 (Gipuzkoa) [email protected] (Bizkaia) 48009 Bilbao Tel.: 34 943 769 044 (Bizkaia) Fax: 34 946 137 040 Activities: Tel.: 34 944 244 350 AUTOMOTIVE Fax: 34 943 769 156 Tel.: 34 944 798 300 E-mail: Plastic injection moulding. Fax: 34 944 236 669 [email protected] MCC Inversiones Fax: 34 944 169 803 and Fagor Ederlan Die making. Activities: Activities: have a 66% Finishes: chrome-plating, Financial leasing of Activities: BATZ SISTEMAS Injection moulded and holding. screen-printing, heat capital equipment. Life Insurance. Bº Torrea 32-34 overmoulded parts. engraving, painting, laser, 48140 Igorre Activities: Rubber mixes etc. CAJA LABORAL SEGUROS (Bizkaia) Brake calipers. Tel.: 34 946 315 707 Pº José Mª LAGUN ARO MAIER NAVARRA Arizmendiarrieta s/n C/Gran Vía 35-1º Fax: 34 946 315 566 FAGOR EDERLAN FPK E-mail: Polígono Ind. Elordi, s/n 20500 Mondragón Tel.: 34 944 798 300 Bº San Antolín, 16 [email protected] Gaztanadui, 42 31979 Iraizotz-Ultzama (Gipuzkoa) Fax: 34 944 169 803 20540 Eskoriatza 48170 Zamudio (Navarra) Tel.: 34 943 719 500 Activities: Activities: (Gipuzkoa) (Bizkaia) Tel.: 34 948 309 210 Fax: 34 943 719 778 General Insurance. Assemblies, bodywork Tel.: 34 943 719 000 Tel.: 34 944 523 605 Fax: 34 948 309 333 Servicio.de.Atencion.al. assembly. Hand brake Fax: 34 943 719 001 Fax: 34 944 522 156 Maier has a 95% [email protected] levers. Jacks. Pedal units. E-mail: E-mail: holding. [email protected] Activities: Rear axles. [email protected] E-mail: Social Welfare MCC Inversiones has Banking. Activities: [email protected] LAGUN ARO a 50% holding. Suspension arms. Knuckles. Activities: Pº José Mª BATZ DO BRASIL Mechanism casings. Activities: Plastic injection moulding. Arizmendiarrieta s/n Avda. Eurico Ambrog 2100 Taubaté SP Clutch housings. Plastic assembly supports. 20500 Mondragón Gearbox covers. Engine covers. Noise (Gipuzkoa) Estado de Sao Paulo, FERROPLAST Discs. Drums. Calipers. shields. Tel.: 34 943 790 100 Brasil Polígono “A Granxa” Cylinder head covers Fax: 34 943 793 531 Tel. 00 55 122 86 15 73 Parcela 2, Rua 1 Fax 00 55 122 86 15 53 Differential gearboxes. LUZURIAGA 36400 Porriño E-mail: TAFALLA [email protected] Batz and Promoauto Gearboxes. (Pontevedra) have a 90% holding Tafalla (Navarra) Apdo. 6015 Activities: GALDAN Tel.: 34 948 700 250 36210 Vigo Activities: Social welfare cover for Pol. Ibarra, s/n Fax: 34 948 702 054 Tel.: 34 986 342 020 co-operators Jacks, brake levers, Alsasua, Navarra E-mail: Fax: 34 986 342 999 pedal units Tel.: 34 948 563 675 [email protected] E-mail: Fagor Ederlan has a Activities: [email protected] 50% holding Cylinder blocks and heads Maier has a 51% holding. Activities: for engines. Aluminium die casting. Activities: Thermoplastic injection moulding.

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MAPSA COPRECI EIKA MATZ-ERREKA ROCHMAN Ctra. Echauri, 11 Avda. de Alava, 3 Etxebarria Bº de Ibarreta, s/n 48210 Ochandiano 31160 Orcoyen E-20550 Aretxabaleta Apdo. 20 E-20577 Antzuola (Bizkaia) (Navarra) (Gipuzkoa) E-48270 Markina (Gipuzkoa) Tel.: 34 945 450 075 Apdo. 1002 Tel.: 34 943 794 500 (Bizkaia) Tel.: 34 943 76 60 00 Fax: 34 945 450 257 31080 Pamplona Fax: 34 943 792 349 Tel.: 34 946 167 732 Fax: 34 943 76 63 75 E-mail: Tel.: 34 948 325 011 E-mail: Fax: 34 946 167 744 E-mail: CONSTRUCTION [email protected] Fax: 34 948 325 323 [email protected] E-mail: matz-erreka@matz- Activities: E-mail: [email protected] erreka.mcc.es [email protected] Activities: Lifts and Rollways. Handling Regulation and control Activities: Activities: Elevators installations. Activities: components for the Sheathed heating elements. Plastic injection. Packaging and wrapping Manufacture of aluminium domestic appliance sector. Electric hotplates. Heaters Fixing elements. ORONA machines. wheel rims. Taps with or without safety for glass ceramic hobs. Automation equipment for Pol. Ind. Lastaola Manufacture of water pump device and thermostats for doors and shutters. 20120 Hernani URSSA housings. gas ovens and hobs. EMBEGA (Gipuzkoa) Campo de los Palacios Low pressure and gravity Electrically operated Pol. Industrial, s/n ORKLI Tel.: 34 943 551 400 Apdo. 284 cast aluminium parts. pumps, timers, pressure Apdo. 63 Ctra. Zaldibia Fax: 34 943 550 047 01006 Vitoria (Alava) switches, thermostats and E-31200 Estella 20240 Ordizia E-mail: Tel.: 34 945 135 744 PROMOAUTO electronic regulation and (Navarra) (Gipuzkoa) [email protected] Fax: 34 945 135 792 control circuits for washing E-mail: Portal de Gamarra, 40 Tel.: 34 948 541 353 Tel.: 34 943 88 07 00 Activities: machines and dishwashers. [email protected] Apdo. 628 Fax: 34 948 541 362 Fax: 34 943 88 73 08 Manufacture and 01080 Vitoria Transformers and regulation E-mail: and control circuits for Activities: installation of lifts and Activities: Tel.: 34 945 129 100 [email protected] escalators. Maintenance Engineering, manufacture Fax: 34 945 129 110 microwave ovens. Valves Thermoelectric safety and CO2 analysing units Activities: and repair of lifts and of metal structures. MCC inversiones has systems for gas: magnetic for gas heaters. Thermostats Decorative metal trims. units, thermocouples and escalators. Manufacture a 50% holding KBE-URSSA for washing machines, Printed gaskets. water heating. Heating and and installation of spatial Activities: convectors and electric Membrane switches. control valves: magnetic structures and enclosures. Polígono Industrial ovens. Júndiz Development of automotive units, thermocouples, Installation and Zurrupitieta, s/n parts. FAGOR powered valves, maintenance of pedestrian COPRECI MÉXICO ELECTRONICA doors VITORIA overpressure valves, flow Tel.: 34 945 290 203 C/Uno, nº 736 Z.I. Bº San Andres, s/n and pressure switches. Guadalajara Apdo. 33 Fax: 34 945 290 677 Distribution: manual and E-mail: Jalisco-Mexico 44940 20500 Mondragón Structures and thermostatic radiator comercia.kbe.urssa@jet. Tel.: 52 36 610 6065 (Gipuzkoa) Handling valves, overpressure valves, es Fax: 52 36 610 6046 Tel.: 34 943 791 011 sphere valves, gas valves E-mail: Fax: 34 943 796 847 BIURRARENA URSSA has a 50% and thermostats. [email protected] E-mail: Pol. Bidebitarte holding COMPONENTS Copreci has a 51% [email protected] Donostia Ibilbidea, 28 TAJO Apdo. 887 Activities: holding. [email protected] Zona Ind. Aranguren 20014 Astigarraga PVC sections. CONSONNI Activities: Activities: Bº Arragua (Gipuzkoa) Bº Trobika, s/n Valves for gas barbecues Semiconductors: power 20180 Oiartzun Tel.: 34 943 554 350 48100 Munguía and taps for domestic gas diodes, Zener diodes, (Gipuzkoa) Fax: 34 943 555 360 Construction Apdo. 35 cookers.. transitory suppresser Tel.: 34 943 49 03 75 Work and Tel.: 34 946 156 331 diodes. R.F. components: Fax: 34 943 49 13 63 Activities: Materials Fax: 34 946 156 281 ZERCO systems for receiving TV E-mail: Machinery and After Sales [email protected] Service (Public works and COVIMAR Activities: signals. Specific design of Komenského 274 forestry) Bº Leguineche Heating elements. Electric 793 68 Dvorce u R.F. equipment. Activities: Maintenance and industrial Apdo. 20 heaters. Tubular hot plates Bruntálu Plastic injection. Mould supply. 48340 Amorebieta for small and large Czech Republic construction for plastic (Maintenance management, (Bizkaia) domestic appliances. Tel.: 420 646 74 54 92 injection. marketing of hydraulic and Tel.: 34 946 730 546 Fax: 420 646 74 54 95 Fax: 34 946 734 491 E-mail: pneumatic material, [email protected] assembly of structures and Activities: installations). Work surfaces and funerary Activities: art in marble, graphite and Manufacture of taps and stone. Supply of worked safety systems for domestic material. Fitting of material gas applications. in situ.

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MCC Companies

ETORKI ORBEA IRIZAR BRASIL Industrial COINALDE Services Pol. Ind. Murga, 16 Pol. Ind. Goitondo Rod.Marechal Rondon, Concejo, 10 01479 Murga-Aiala 48269 Mallabia Km. 252,5 ALECOP 01013 Vitoria (Bizkaia)Equipment CED 18603-970 (Alava) (Alava) Loramendi, s/n Tel.: 34 943 171 950 Botucatu-SP, Brazil Tel.: 34 945 264 288 Tel.: 34 945 399 072 20500 Mondragón Fax: 34 943 174 397 Tel.: 55 14 820-8008 Fax: 34 945 253 997 Fax: 34 945 399 223 (Gipuzkoa) E-mail: Fax: 55 14 820-8001 E-mail: INDUSTRIAL Tel.: 34 943 712 405 Activities: orbea@sarenet [email protected] EQUIPMENT Irizar has a 100% Fax: 34 943 799 212 Nails. Wire. Metal mesh. holding. Activities: Activities: E-mail: Bicycles. [email protected] DANONA Pine boards and planks. Leisure and sport LITOGRAFIA Activities: Activities: Pol. Ugaldetxo, s/n LANA DIKAR Coach manufacture. Technical educational 20180 Oiartzun C/ Santxolopetegui Urarte Kalea, 26 Technical equipment. Prefabricated (Gipuzkoa) Auzoa, 24 Apdo. 193 Components IRIZAR MAGHREB electrical installations. Tel.: 34 943 491 250 20560 Oñati (Pol. Ind. San Lorenzo) and Km 0.300 Oulja,Salé Fax: 34 943 491 660 (Gipuzkoa) 20570 Bergara Moroc EDERFIL PRODESO E-mail: Tel.: 34 943 780 111 (Gipuzkoa) Tel.: 212 7 810113 [email protected] Fax: 34 943 783 222 Tel.: 34 943 765 548 Pol. Industrial, s/n Tax: 212 7 807668 Uribe Auzoa, 10 E-mail: Fax: 34 943 760 814 20250 Legorreta Irizar has a 34% 202500 Mondragón Activities: E-mail: [email protected] (Gipuzkoa) [email protected] (Gipuzkoa) holding. Catalogues. Magazines. Tel.: 34 943 806 050 Tel.: 34 943 779 351 Books. Posters. Leaflets. Activities: Activities: Muzzle-loading weapons. Fax: 34 943 806 349 Activities: Activities: Annual Reports. Formwork boards. Boards E-mail: Coach manufacture. for furniture. Three-ply Education and training SHANGHAI DIKAR [email protected] systems. Consultancy and ELKAR boards. Boards for TIANJIN IRIZAR structural use. LEISURE AND Activities: technical assistance in Autonomia, 71 - 3 ª SPORTS COACH education. Teaching 48012 Bilbao Electric conductors. 218, Hong Qi Road VICON EQUIPMENT material. Technological (Bizkaia) Nankai District research centres. Compnay Tel.: 34 944 273 300 Padre Larroca, 3 Mengjing, Village, HERTELL Huangdu Town Tianjin (China) creation and innovation Fax: 34 944 274 097 20001 San Sebastian Poligono Industrial, s/n Jinding District, Shanghai Tel.: 86 222 7613346 centres. General E-mail: (Gipuzkoa) 20267 Ikastegieta P.R. China Fax: 86 222 7613245 consultancy. [email protected] Tel.: 34 943 270 300 (Gipuzkoa) Tel.: 8621 59594169 E-mail: Fax: 34 943 273 047 Tel.: 34 943 653 240 Activities: Fax: 8621 59594769 [email protected] ALKARGO Elgeta Fax: 34 943 653 332 Industrial catalogues. Irizar has a 35,7% Bº Belako, s/n (Gipuzkoa) E-mail: Books. Advertising leaflets. Apdo 102 Tel.: 34 943 789 022 WINGROUP [email protected] holding. Annual Reports. 48100 Mungia Fax: 34 943 789 024 Apartado 168 Magazines. Graphic Activities: Activities: (Bizkaia) E-mail: Amillaga, 28 products in general For the agricultural sector: Coach manufacture. Tel.: 34 946 740 004 [email protected] 20570 Bergara (Gipuzkoa) Depressors. Valves. Fax: 34 946 744 417 OIARSO Reducers, accessories. UROLA Activities: Tel.: 34 943 769 056 E-mail: Bº Zikuñaga, 57-F Water pumps and milking Urola-Kalea, s/n Buildings and homes. Fax: 34 943 769 178 [email protected] Polígono Ibarluze Industrial premises. pumps. Apdo. 3 Activities: 20230 Legazpia Activities: 20128 Hernani Tents. Exercise equipment. IRIZAR (Gipuzkoa) Distribution transformers. (Gipuzkoa) Tel.: 34 943 335 020 Hand and electrical tools. Zumarraga Bidea, 8 Tel.: 34 943 737 003 Medium-power transformers. Fax: 34 943 335 210 20216 Ormaiztegi Fax: 34 943 730 926 Autotransformers. Dry E-mail: EREDU (Gipuzkoa) E-mail: encapsulated transformers. [email protected] Ola Auzoa, 4 Tel.: 34 943 809 100 [email protected] 20250 Legorreta Fax: 34 943 889 101 [email protected] Activities: (Gipuzkoa) E-mail: [email protected] Activities: For the health sector: Tel.: 34 943 806 100 Infusion equipment. Activities: Construction of blowing Fax: 34 943 806 374 machines for the Transfusion equipment. E-mail: [email protected] Luxury long- and medium- Catheters. Epicraneals. distance coach bodywork. manufacture of hollow Activities: thermoplastic bottles. Enteral nutrition. Parentaral nutrition. Accessories and Metal furniture for outdoor Manufacture of blowing connectology. Probes. use: countryside, beach and moulds. Plastic extrusion. Anaesthesia equipment. garden. Plastic injection moulding. Anti AIDS kit. Modern furniture for indoor Plastic blowing. Plastic use. injection moulding-blowing

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OSATU FAGOR MC LEAN Commercial FAGOR Travesía de Padure, s/n ELECTRODOMESTICOS Valentín Gomez, 151 Equipment AUTOMATION 48240 Berriz Bº San Andrés, s/n 1706 Haido FAGOR Bº San Andrés s/n (Bizkaia) Apdo. 49 Buenos Aires (Argentina) INDUSTRIAL Apdo. 144 Tel.: 34 946 225 371 20500 Mondragón Tel.: 54 1 489 14 15 20500 Mondragón Santxolopetegui, 22 Fax: 34 946 225 391 (Gipuzkoa) Fax: 54 1 489 09 42 (Gipuzkoa) Aptdo. 17 Tel.: 34 943 719 100 E-mail: Tel.: 34 943 799 511 Activities: 20560 Oñati ENGINEERING AND Fax: 34 943 796 881 [email protected] Fax: 34 943 791 712 (Gipuzkoa) CAPITAL GOODS For the health sector: E-mail: Fagor E-mail: Monitors. Single or three- Tel.: 34 943 718 030 fagorelectrodomesticos@ Electrodomesticos marketing- channel Fax: 34 943 718 181 mcc.es and MCC info@faborautomation. electrocardiographs. E-mail: Inversiones have a Automation mcc.es Defibrillators. Ergometers. Activities: [email protected] 50% holding and Control Spirometers. Ultrasound Cookers. Ovens. Extractor Activities: Activities: scanners. fans. Microwave ovens. Air Actividad Numerical controls. Digital 300 to 3,000 dishes/hour BERRIOLA conditioning. Fridges and Manufacture of domestic readouts. Linear and rotary dishwashers. Bº San Esteban s/n freezers. Washing appliances. transducers. Feed and Glass washers. 7-10-14-25- 20170 Usurbil machines. Dryers. headstock regulators. Feed 50 kg. washing machines. (Gipuzkoa) Dishwashers. Water and headstock motors. Ranges. Brat pans. Tel: 34 943 366 090 heaters. Boilers. Storage Furniture Convection and combi Fax: 34 943 370 094 heaters. Kitchen units and steamers (gas and electric). E-mail: kitchenware. COINMA Fryers. Fry-tops. [email protected] Engineering Vitoriabidea 4-Z.I. and Commercial refrigeration. Activities: HOUSEHOLD GOODS EXTRA Ali - Gobeo Consultancy ELECTROMENAGER 01010 Vitoria (Alava) Direct current motors. FAGOFRI Avenue Hassan II Tel.: 34 945 241 616 Special custom-made DIARA Domestic Mohammedia Fax: 34 945 240 637 Ctra. Córdoba-Málaga motors. Permanent magnet Pol. Basabe appliaces BP 179 - Marocco E-mail: km. 8 servomotors. Brushless Edif. Oficinas EO 13-14 Tel.: 212 3 32 74 12 [email protected] 14900 Lucena drives. Repair of motors 20550 Aretxabaleta (Córdoba) and regulators. (Gipuzkoa) CADORE Fax 212 3 32 74 25 Actividad: Fagor Tel.: 34 956 516 179 Tel.: 34 943 771 015 Wooden office furniture. Bº San Esteban, s/n Electrodomésticos Fax: 34 957 515 621 Fax: 34 943 790 587 20737 Régil Fagor Industrial has has a 100% DANONA E-mail: Aptdo. 95 - 20730 holding. a 50% holding [email protected] Azpeitia Anardi Area, 2 Activities: Tel.: 34 943 813 899 Activities: Apdo. 42 Activities: Domestic appliances Fax: 34 943 815 666 Manufacture of domestic 20730 Azpeitia Product design. Packaging appliances. (Gipuzkoa) design. Graphic design, Activities: Tel.: 34 943 815 900 KIDE corporate image. Individual boilers. GEYSER GASTECH Fax: 34 943 810 066 Pol. Gardotza, s/n Apdo. 61 Ondarroa EDESA Bº San Juan s/n E-mail: ENYCA Apdo. 151 [email protected] 48710 Barriatua Avda. La Cerrada, 37 Cervantes, 45 20570 Bergara (Bizkaia) 39600 Maliaño 48970 Basauri Actividad: (Gipuzkoa) Tel.: 34 946 831 600 (Cantabria) (Bizkaia) Veneered and melamine Tel.: 34 943 769 004 Fax: 34 946 833 133 Tel.: 34 942 261 096 Tel.: 34 944 491 200 lounge furniture. Fax: 34 943 767 136 E-mail: Fax: 34 942 260 506 Fax: 34 944 495 096 Fagor Veneered and melamine [email protected] dining room furniture E-mail: Activities: Electrodomesticos Activities: [email protected] has a 50% holding. Veneered and melamine Manufacture of domestic bedroom furniture Insulated panels and doors The Engineering and appliances. Activities: Veneered and melamine for coldrooms, cold stores Consultancy Subgroup has a White goods. Gas water heaters. children’s bedroom furniture and miniboxes. Upholstered sofas 66.66% holding Activities: Telecommunications engineering

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MCC Companies

LKS CONSULTORIA MSI SEI FAGOR BATZ P.I. PROIN, S.A. CIMA Pº José Mª MONDRAGON Le Forum TROQUELERIA Avda. Carlos I, 10-1º Parc d‘activités le Arizmendiarrieta, 5 SISTEMAS DE 64116 Bayonne CEDEX Bº Torrea 32 - 34 San Sebastián Pradines 20500 Mondragón INFORMACION (Francia) 48140 Igorre Tel.: 34 943 376 012 Orange (Gipuzkoa) Ama kandida, 21 Tel.: 33 559 580 000 (Bizkaia) Fax: 34 943 365 942 France Tel.: 34 943 770 335 (Denac) Fax: 33 559 580 199 Tel.: 34 94 6315 707 E-mail: Tel.: 33 49 0111 665 Fax: 34 943 771 012 20140 Andoain E-mail: Fax: 34 94 6315 566 [email protected] Fax: 33 49 0511 878 E-mail: (Gipuzkoa) sei@eureka. E-mail: Fagor Arrasate has Fagor Sistemas has [email protected] Tel.: 34 943 594 400 archimedia.fr [email protected] a 100% holding an 82% holding. The Engineering and Activities: Fax: 34 943 590 536 Activities: Activities: Activities: E-mail: Consultancy Consulting. Management Subgroup has a Die manufacture. Manufacture of machine Study and design of Advice. Specific solutions. [email protected] tools automatic assembly [email protected] 66.66% holding Training in Strategy, FAGOR (Sheet metal processing systems. Quality and Continuous Activities: Activities: ARRASATE systems) improvement, Marketing, Computer systems and Computing and software Bº San Andrés, 20 ONA-PRES Organisation and Human services development. Apdo. 18 FAGOR SISTEMAS Pol. Industrial resources, Industrial 20500 Mondragón Polígono Industrial Ugaldeguren II Engineering and logistics, ONDOAN (Gipuzkoa) Basabe, pab. E. Bº San Antolín, s/n Economic-Financial matters. Apdo. 198 48170 Zamudio Parque Tecnológico Metal Forming Tel.: 34 943 792 011 Account auditing. 20550 Aretxabaleta (Bizkaia) Edif. 101 módulo C Fax: 34 943 799 677 AURRENAK (Gipuzkoa) Tel.: 34 944 523 808 48016 Zamudio E-mail: LKS INGENIERIA Vitorialanda 15 Tel.: 34 943 712 080 Fax: 34 944 523 980 (Bizkaia) [email protected] Ali - Gobeo Fax: 34 943 712 210 E-mail: Pº José Mª Tel.: 34 944 522 313 01010 Vitoria Activities: E-mail: [email protected] Arizmendiarrieta, 5 Fax: 34 944 521 047 20500 Mondragón Tel.: 34 945 244 850 Presses and stamping [email protected] E-mail: Activities: (Gipuzkoa) Fax: 34 945 246 912 systems. [email protected] Activities: Hydraulic presses. Tel.: 34 943 770 335 E-mail: Strip processing systems. [email protected] Automatic assembly Fax: 34 943 793 878 [email protected] Welded tube and section systems. E-mail: Activities: manufacturing systems. Activities: Transfer, progressive and Robotics. [email protected] Engineering/Consulting Tooling for different iron (Environment) conventional dies. Activities: and aluminium casting Engineering and consulting. Turnkey systems technologies in the Consulting in engineering. (Environment) Property valuations. Civil automotive sector. Engineering. Building.

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D+S SISTEMAS GOITI SORALUCE EGURKO ORTZA Arriaga Kalea, 1 Arriaga Kalea 1 Bº Osintxu Basusta Bidea, 9 Pol. Areta, s/n Apdo. 80 Apdo. 80 B-20570 Bergara Apdo. 25 31620 Huarte-Pamplona E-20870 Elgoibar E-20870 Elgoibar (Gipuzkoa) 20750 Zumaia (Navarra) (Gipuzkoa) (Gipuzkoa) Tel.: 34 943 748 050 (Gipuzkoa) Tel.: 34 948 330 438 Tel.: 34 943 748 050 Tel.: 34 943 748 323 Fax: 34 943 765 128 Tel.: 34 943 860 100 Fax: 34 948 330 002 MACHINE TOOLS Fax: 34 943 743 767 Fax: 34 943 748 144 E-mail: Fax: 34 943 143 107 E-mail: E-mail: E-mail: [email protected] E-mail: [email protected] viniguez@ds- [email protected] [email protected] Activities: Activities: Machine Tools sistemas.com (Cutting) Activities: Moving column milling Activities: Machinery for wood. Activities: CNC sheet metal punching centres. Fixed bed CNC Machinery for wood. Edge Equalising and sectioning Special machinery. Special machines. milling machines. veneering machines. saws. Machining centres. DANOBAT and transfer machines. CNC punching machines Machining centres. Radial Profiling machines. Arriaga kalea, 21 Flexible machining lines. with shears included. drilling machines. Combined veneering + ZUBIOLA Apdo. 28 Laser cutting machines. profiling machines. Bº Landeta, s/n E-20870 Elgoibar ESTARTA Automatic press brakes and Sanding machines. 20730 Azpeitia (Gipuzkoa) RECTIFICADORA flexible bending and Machinery for (Gipuzkoa) Tel.: 34 943 740 250 C/ Autonomía, 1 punching systems. Wood, Tooling LATZ Tel.: 34 943 157 056 Fax: 34 943 743 138 Apdo. 147 Punching tools. and Fixtures Avda. de los Gudaris, Fax: 34 943 150 026 E-mail: E-20870 Elgoibar s/n E-mail: [email protected] (Gipuzkoa) LEALDE DOIKI Apdo. 56 [email protected] Tel.: 34 943 743 705 Barrio Cortazar, s/n Pol. Ind. Goitondo 5 20140 Andoain Activities: Activities: Fax: 34 943 741 758 Apdo. 11 48269 Mallabia (Gipuzkoa) Grinding machines: CNC, E-mail: I-48288 Ispaster (Bizkaia) Tel.: 34 943 592 507 Tools for wood: HSS drills. cylindrical, exteriors and MD drills. HSS milling [email protected] (Bizkaia) Tel.: 34 943 171 600 Fax: 34 943 591 391 interiors, flat surfaces, Tel.: 34 946 844 004 Fax: 34 943 174 273 E-mail: cutters. MD milling cutters. bridge and special for the Activities: Fax: 34 946 844 130 E-mail: [email protected] Discs. Cutter heads. aeronautical sector. Construction of Centre-less E-mail: [email protected] Window units. Cutters. Lathes: CNC, lathe centres, grinding machines. [email protected] Activities: vertical. Automatic Activities: Standard HSS, HSSCo and handling. Activities: Dimensional verification solid carbide drills. Special Horizontal CNC lathes. tooling. High precision HSS, HSSCo and solid Vertical CNC lathes. mechanics. Electronic, carbide tools. pneumatic and mechanical gauges. Machining fixtures.

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MCC Companies

EROSMER BEHI-ALDE IKERLAN Bº San Agustín, s/n Olaeta-Aramaiona José María 48230 Elorrio (Bizkaia) (Alava) Research, Arizmendiarrieta, 2 Tel.: 34 946 211 211 Apdo. 44 (Mondragón) Training and Apdo. 146 Fax: 34 946 211 222 Tel.: 34 945 450 100 20500 Mondragón Participada Granja: 34 945 450 100 Education (Gipuzkoa) al 78,07% Tel.: 34 943 771 200 Activities: Fax: 34 943 796 944 Activities: Milk. Livestock for breeding E-mail: and meat. Retailing of consumer [email protected] products in large stores. Research MIBA and Training Activities: Ctra. Etxebarria, s/n Centres Contracted R&D projects Distribution Group Agricultural- 48270 Markina IDEKO for the development of new products or for the food (Vizcaya) Arriaga kalea, 2 improvement of production Tel.: 34 946 167 884 Apdo. 80 AUZO-LAGUN processes. Fax: 34 946 167 886 20870 Elgoibar Uribarri Auzoa, 13 Mechatronics: electronics Olaeta-Aramaiona (Gipuzkoa) Distribution EREIN COMERCIAL 20500 Mondragón and technical design and (Alava) Tel.: 34 943 748 000 (Gipuzkoa) production systems. CONSUM Pol. Ibur Erreka, s/n Granja: Fax: 34 943 743 804 Apdo. 242 Tel.: 34 943 794 611 Energy: rational use of Avda. de Espioca, s/n 34 945 450 259 E-mail: 20600 Eibar Fax: 34 943 794 366 energy, renewable energy. 46400 Silla (Valencia) [email protected] (Gipuzkoa) E-mail: Activities: Tel.: 34 961 974 050 Tel.: 34 943 208 544 [email protected] Compound feeds. Small Activities: MTC Fax: 34 961 974 092 agricultural machinery. Fax: 34 943 208 634 Development of and MAIER TECHNOLOGY E-mail: Activities: Fertilisers and seeds. [email protected] innovation in machine tools CENTRE [email protected] Catering. Cooked dishes. Phytosanitary products. Pol. Ind. Arabieta Activities: Cleaning of buildings and Veterinary service. and systems. Product Activities: 48300 Gernika Marketing of food products premises. development. Improvement Retailing of consumer (Bizkaia) to the catering trade and Complete service for the UNEKEL of production processes. products in small and large Tel.: 34 946 259 265 collectives.. health sector. Technical support. stores: Fruit and vegetables, Barriada de Berrio, s/n Fax: 34 946 259 258 48230 Elorrio (Bizkaia) Technology monitoring. meat and cold meats, fish, EROSKI BARRENETXE E-mail: dairy products, groceries, Tel.: 34 946 167 884 [email protected] drinks, frozen food, Bº San Agustín, s/n Okerra, 7 Fax: 34 946 167 886 cleaning materials and 48230 Elorrio (Bizkaia) 48270 Markina Activities: Tel.: 34 946 211 211 (Bizkaia) Activities: Research and development household goods, textiles, Breeding of rabbits. domestic appliances, Fax: 34 946 211 222 Tel.: 34 946 168 143 in automotive assemblies leisure articles, do-it- E-mail: Explot. Berriatua: and components made with yourself, sound and vision, [email protected] Tel.: 34 946 139 157 thermoplastics. kitchenware. http://www.eroski.es Explot. Etxeberria: Development of new Tel.: 34 946 166 173 technologies. Activities: E-mail: Retailing in small and large [email protected] stores: Fruit and vegetables, meat and cold meats, fish, Activities: dairy products, groceries, Horticulture in greenhouses drinks, frozen food, and the open air. sundries and cleaning materials, textiles, domestic appliances, leisure articles, do-it-yourself, sound and vision, kitchenware, travel and petrol.

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Education MONDRAGON MCC DESARROLLO MCC MCC and Training ESKOLA Support Bodies Pº José María INTERNACIONAL MONDRAGON Centres POLITEKNIKOA COLOMBIA and Arizmendiarrieta, 5 Arizmendiarrieta, 5 CIM (AHIZKE) C/Loramendi, 4 20500 Mondragón 20500 Mondragón Transversal 39 B, 20500 Mondragón International (Gipuzkoa) (Gipuzkoa) Avda. Nutibara Avenida de Alava, 4 (Gipuzkoa) Tel.: 34 943 779 300 Tel.: 34 943 779 300 nº 73 A - 21 20500 Mondragón Services Tel.: 34 943 794 700 Fax: 34 943 796 632 Fax: 34 943 796 632 Edificio Centro, 39 (Gipuzkoa) Fax: 34 943 791 536 www.mondragon.mcc.es E-mail: Oficina 402 Tel.: 34 943 712 055 E-mail: [email protected] [email protected] Medellín - Colombia Fax: 34 943 712 181 MCC Inversiones Support Bodies and Caja Laboral Tel.: 57 4 411 0725 E-mail: empresas@cim- Activities: Activities: have a 23.75% Fax: 57 4 411 0713 idiomas.com Technical education. ASCORP holding International business promotion. Activities: Activities: Rosario Pino, 1 MONDRAGON Activities: Commercial services Language training. 28020 Madrid UNIBERTSITATEA (Madrid) Company promotion. MONDRAGON Translation and interpreting BEIJING service. C/Loramendi, 4 Tel.: 34 915 790 604 MONDRAGÓN 20500 Mondragón Fax: 34 915 707 304 MCC SUSTRAI Room 9267, Golden ZAGROS ETEO (Gipuzkoa) E-mail: [email protected] Arizmendiarrieta, 5 Land Building Arizmendiarrieta, 5 32 Liang Ma Qiao ESCUELA UNIVERSITARIA Tel.: 34 943 794 700 20500 Mondragón 20500 Mondragón Activities: Road, 10016, ESTUDIOS EMPRESARIALES Fax: 34 943 791 536 (Gipuzkoa) (Gipuzkoa) E-mail: [email protected] Holding Company. Tel.: 34 943 77 93 00 Beijing, P.R.C. Tel.: 34 943 779 354 Larraña, 33 Fax: 34 943 79 66 32 Tel.: 8610 6464 3681-5 Fax: 34 943 796 632 Activities: 20560 Oñate FUNDACION MCC Fax: 8610 6464 36 80 E-mail: [email protected] (Gipuzkoa) University education. Arizmendiarrieta, 5 Activities: Tel.: 34 943 781 311 20500 Mondragón Property management. Activities: Activities: E-mail: OTALORA (Gipuzkoa) Commercial services. Commercial services [email protected] Palacio OTALORA Tel.: 34 943 779 300 MCC Activities: Barrio Aozaraza s/n Fax: 34 943 796 632 International E-mail: BRASIL-LUCRO Training in business 20550 Aretxabaleta Services fundació[email protected] Alameda Joaquim administration. (Gipuzkoa) EUSCOL Tel.: 34 943 712 406 Eugénio de Lima Activities: Arizmendiarrieta, 5 IRAKASLE ESKOLA Fax: 34 943 712 338 696 Conj. 33 Promotion of the social 20500 Mondragón CP 01403-901 20540 Eskoriatza E-mail: economy. [email protected] (Gipuzkoa) Sao Paulo - Brasil (Gipuzkoa) Tel.: 34 943 779 300 Tel.: 5511 289 50 83 Tel.: 34 943 714 157 Activities: MCC Fax: 34 943 796 632 Fax: 5511 289 5879 Fax: 34 943 714 032 Co-operative and business INVERSIONES 66.66% holding E-mail: E-mail:[email protected] training. Arizmendiarrieta, 5 Activities: [email protected] Activities: 20500 Mondragón (Gipuzkoa) Commercial services. Activities: University Teacher Training TXORIERRI Commercial services. College. POLITEKNIKA IKASTEGIA Tel.: 34 943 779 300 Fax: 34 943 796 632 Untzaga Ibaia kalea, 1 MCC INDIA LEA-ARTIBAI 48016 Derio Activities: (Bizkaia) 1110, eleventh Floor, Avda. Jemein, 19 Company promotion. International Trade 48270 Markina Tel.: 34 944 544 000 Fax: 34 944 544 003 Tower (Bizkaia) Nehru Place, Tel.: 34 946 167 552 E-mail: [email protected] 110019 - New Delhi, Fax: 34 946 166 674 India Activities: Activities: Tel.: 0091-11-6221964 Technical education. Technical education. Fax: 0091-11-6231612 E-mail: [email protected] Activities: Commercial services.

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Mondragón, 27 May 1999

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ondragón Corporación Coope- rativa (MCC) is the fruit of the co-operative movement initiated in 1956, the year in which “O the first industrial co-operative was set up in Mondragón, Gipuzkoa, Spain. Its business philosophy can be found in its Corporate Values:

DESIGN AND CO-ORDINATION Centro Corporativo de MCC PHOTOMECHANICS Croman / Fot. Andrés PRINTING A. G. Elkar, S.Coop. Legal Deposit: BI- 1132/99 MCC/Memoria 98/inglés 17/6/99 12:53 Página 56

MONDRAGON CORPORACION COOPERATIVA