THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 Rabigh refinery for Saudi Aramco and Sumitomo in Saudi Arabia INTRODUCTION 4

I.THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 7

1. GENERAL CONTEXT 8 1.1.The International economy 8 The Year 2009 8 Forecasts 2010 9 1.2.The Spanish economy 9 The Year 2009 9 Forecasts 2010 14 1.3.The Capital Goods Industry in Europe 16 The Year 2009 17 Forecasts 2010 17

2.THE CAPITAL GOODS INDUSTRY IN SPAIN 18 2.1.The Year 2009 and Forecasts 2010 18 2.2. Detailed examination of the main variables and their evolution according to industrial branches and size of companies 24 2.2.1.Turnover 24 2.2.2. New Contracts 25 2.2.3. Profit and loss account 26 2.2.4. Employment 28 2.2.5. Personnel Expenses and Productivity 28 2.2.6.Foreign Trade 30 Breakdown according to specialisations 33 Breakdown of foreign trade by geo-economic area 36

Scope, Methodology and Sources 40

II. SERCOBE, NATIONAL ASSOCIATION OF MANUFACTURERS OF CAPITAL GOODS 43

1. SERCOBE IS 44

2. STRUCTURE AND ORGANISATION 45

3. ACTIVITIES OF SERCOBE IN 2009 47

List of Sercobe Associates 65 INTRODUCTION

In this traditional Annual Report, SERCOBE presents the results of the analysis conducted on the situation and perspective of the Spanish Industry of Capital Goods in the year 2009.

The objective of both analyses, that are annually performed, is to know in depth the evolution of our sector.They are based on the surveys conducted among the most representative companies according to their dimension and specialisation, as well as on the data available at different departments of the Spanish Public Administration, the European Union and the European Associations of the Sector.

We are trying with such knowledge to orient and to adapt our activities to the needs of the enterprises, therefore fulfilling the statutory aims of providing support and stimulus to the Spanish Industry of Capital Goods, the representation of which we are honoured in receiving.

In the second part of this publication, we also give a tight synthesis of such activities and the work developed.

Within an international context, and European one in particular, with serious difficulties, to which the singularities of the Spanish economy are added, the Industry of Capital Goods has experienced a year 2009 of severe contraction, much deeper than anticipated one year ago.This has placed the level of activity in values similar to those of the year 2004, being its evolution in accordance with the one experienced by our colleagues of this specialisation in Europe.

Turnover is placed in the range of 38,800 million Euros, with a serious reduction of –20.0% and it continues representing more than 20% of the Manufacturing Industry.

Employment has suffered by this difficult situation and accuses a reduction of –6.8%, especially painful inasmuch as it supposes a loss of jobs of considerable technical training and, therefore, of complex recovery.

The Sector occupies 190,000 people directly and more than twice this number in suppliers and through induced use.

The variations of Turnover and Employment lead to a reduction of the Gross Productivity in the range of –5% that must be corrected as soon as possible, to the benefit of the general competitiveness of the economy.

The strong contraction of the Demand has forced to a reduction of the Sale Prices, considered for the sector altogether in –0.7%.

The fall of the Corporate Results considered in –26.4% and the diminution of the Own Investment by –23.2% have been inevitable consequence of that. It is excluded nevertheless from this result the investment performed in personnel training and innovation that have practically stayed as an inexcusable reaction to secure the development of the enterprises in the future.

In a praiseworthy joint effort of the social agents of the sector to defend the viability of the companies and to contain the loss of jobs, the Personnel Expenses have undergone an adjustment evaluated in –2%.

Exports are vital for this Industrial Sector that has devoted to the foreign markets 61% of its production. They have lost –16% following the reduction of international trade. Even so, they represent 15% of the total Spanish Exports of goods, being the main exporting sector.The Foreign Trade Deficit of the Sector represents a value of the order of 27% of the total Deficit of Goods.

On the other hand, the Imports of Capital Goods present a fall of –34.1% and the combination of the magnitudes of the sector evidences a deep retraction of the Market, estimated in –32%, in accordance with the setback undergone by the volume of New Contracts, that according to the estimates of the companies has dropped –27% and places the use of the Productive Capacity in 73%.

4 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 In summary, the year 2009 has constituted a hard test and only in its last months it seems to attenuate the steep falls undergone by the magnitudes object of the examination.

Within a generalized scene of crisis that affects in a similar way to all the specialisations of the Sector, the most serious problems of survival affect the smaller companies, with a high number of cessations of activity.

On the other hand, a better situation is observed in addition to more capacity to confront the crisis in those companies of a larger size and in those acting not only as manufacturers of equipment, but also as providers of technological services bound to contracting complete plants and facilities.They can also obtain access to the emergent international markets in which the demand has been maintained. The year 2010 and facing the future

The year begins with some data that seem to indicate a certain recovery of the real economy in the productive sectors and, in particular, in the Manufacturing Industry.This industry fights to overcome a context in which the crisis of credits is added to the lack of corporate expectations that animates investment.

The impression felt by the Spanish Industry of Capital Goods is that it is leaving without a doubt a difficult situation concerning the level of the order portfolio, but that in the first quarter posts increases in exports supported by the recovery of the external demand.

It is possible, therefore, to trust in the recovery of our Sector, which has known how to face previously serious difficulties. It has a proven capacity of opening new markets, progressing in quality and technological innovation of its products.

Recovery that, evidently, parts of a very low level, will be gradual with probable hesitations and that it should have to consolidate in the period 2011-2012.

The Spanish Industry of Capital Goods expects in 2010 the maintenance of this level of activity and, in a very short advance, if any, that would allow stopping at least the painful losses of employment.

It should be explicitly mentioned the reaction of the European mainframe organization, ORGALIME that groups the national associations of the Engineering Industry, of which SERCOBE is an active part, that in close collaboration with the institutions of the EU, has designed a complete plan of specific initiatives of industrial policy to re-launch our Sector, in a new context of sustainable economy based on knowledge.

The so wished recovery will depend largely upon the effective and coordinated start up of such initiatives at the level of all the Member States. It will depend as well of the efficiency obtained in selecting the moments in which the public resources available are put obligatorily under a serious containment and, therefore, have to be allocated with maximum responsibility. Gratitude

We express our gratitude to the associated companies, for their trust in this Association and to all participating companies, which have enabled this analysis of the sector providing their data and qualitative estimates.We also thank the Ministry of Economy and Finance and the Ministry of Industry, Tourism and Commerce, with which SERCOBE is in close collaboration, as well as the Institute of Foreign Trade ICEX for its support and sponsorship of this publication.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 5 Integrated photovoltaic transformer substation

THE SPANISH INDUSTRY I OF CAPITAL GOODS 2009

TIME system for the inspection of PWR reactor pressure High power drives vessel for nuclear plants, China application 1. GENERAL CONTEXT

1.1.THE INTERNATIONAL ECONOMY(1) High values of the Public Deficit above 3% of GDP are maintained in all the countries. Germany presents the less negative number, while The Year 2009 the United Kingdom and USA post the worse values.

Slight modifications something more optimistic than in the previous All the values of Public Debt exceed 60% of GDP,and Japan, in report, especially strong in the emergent economies. addition to USA, marks to the highest percentage.

GDP maintains negative rates in all the countries of the table with The Unemployment Rates stay in the high values foreseen, in the maximum values in Germany, United Kingdom and Japan. neighbourhood of 9%, being Japan and Germany the lowest.

Domestic Demand presents the same perspective, with reductions Only Japan has negative rates in Prices, and the United Kingdom for the whole that emphasize in the United Kingdom and USA. shows the highest rate.

In the Current Account Balance of Payments (% of GDP), positive Strong setbacks appear in Industrial Production, with negative rates values appear only in Germany and Japan. that exceed 10% except in USA.

GDP Domestic Balance of Payments Public Public Industrial CPI Unemployment Demand c.a.% GDP Deficit % GDP Debt % GDP Production Rate 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 Germany –4.9 1.2 –1.7 0.4 5.0 4.8 –3.3 –5.0 73.2 78.8 –16.8 6.3 0.9 1.3 7.5 7.8 France –2.5 1.3 –2.4 1.2 –2.9 –3.3 –7.5 –8.0 77.6 83.6 –12.1 4.0 1.6 1.4 9.5 10.2 EMU –4.1 0.9 –3.3 0.1 –0.6 –0.4 –6.3 –6.6 78.7 84.7 –15.0 4.2 1.3 1.5 9.4 10.3 U. Kingdom –4.9 1.2 –5.6 1.3 –1.3 –1.8 –11.5 –12.0 68.1 79.1 –10.6 0.3 3.4 2.6 7.6 7.8 USA –2.4 2.8 –3.5 0.8 –3.0 –3.7 –11.1 –10.1 84.5 94.1 –9.7 3.0 2.4 1.7 9.3 9.7 Japan –5.2 2.1 –3.3 0.6 2.8 3.1 –6.9 –6.7 189.2 193.5 –21.8 26.8 –1.2 –0.5 5.1 5.3 Spain –3.6 –0.4 –6.1 –1.7 –5.1 –4.6 –11.2 –9.8 53.2 64.9 –16.2 0.9 1.4 1.6 18.0 19.7

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(1) Forecasts of the European Commission, spring 2010 and Eurostat

8 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 1. GENERAL CONTEXT

Forecasts 2010 1.2.THE SPANISH ECONOMY

The occurrence of a change in the economic cycle seems to be The year 2009 confirmed in the emergent countries like China, Japan, India, Brazil, etc. as well as in the USA and in the main countries of the EU. Difficult year for the Spanish economy, as its GDP has backed down –3.6% through a process of continuous descent (–3.3; –4.2; –4.0; The growths in GDP versus 2009, although modest, reach all the –3.1), ratified by the inter-quarterly variation (–1.7; –1.0; –0.3; –0.1), countries in the table, being the numbers higher in the United States that maintains negative values in all the series. and Japan. ••• Certainly the difficulties in the Public Accounts of a considerable number of European countries that have been clearly evidenced, From the point of view of the SUPPLY the Total GAV falls –3.8% introduce a climate of serious uncertainty. (1.1% in 2008).The rates of annual variation in the quarters (–3.5; –4.4; –4.1; –3.2) do not show positive values, the same as the inter- Public Deficit and Debt, maintain values increasing moderately in quarterly variation (–1.8; –0.9; –0.2; –0.2). the entire table, and highly above the convergence criteria.This imposes drastic policies of cut and austerity in the expenses. None of the components reaches positive rates and it is especially concerning that the GAV of Industry presents the worse rate, Domestic Demand, although presenting positive contributions to –14.7% (–2.1% in 2008), with an evolution (–15.3; –16.7; –15.5; –10.9) the growth of the GDP,increases very slightly and the Consumption that offers little encouraging signs, except the inter-quarterly Prices seem contained in rates below 2%, except in the United variation (–5.6; –4.5; –1.7; 0.5), with a timidly positive last value. Kingdom, while they are negative in Japan. In Agriculture the rate is –2.4% (–0.8% in 2008). In Energy it is –8.2%, With all this, no improvements in Employment are foreseen, versus 1.9% in 2008. For Construction –6.3 versus –1.3% of the although the backward movements are very moderate, and so the previous year, and Services, finally, back down –1.0% (2.2% in 2008), Rates of Unemployment will continue high and close to 10% within with a something more moderate progression in this component the EU, with something better numbers for Germany, the United with the largest weight. Kingdom and Japan. Also Tax Revenue by VAT falls –4.1%, that adds to –1.4% of the Better perspective for the Industrial Production that leaves finally previous year, whereas Other Taxes improve by 2.1% (–0.5% in the negative rates to initiate a certain improvement, very 2008) with rises in the series (2.3; 1.9; 1.4; 2.5) especially in the last considerable in Japan. quarter.

The Balances of Payments maintain the negative rates of 2009, and ••• only Germany and Japan preserve their positive balances.

In summary, a general stage of recovery with a smooth slope, while uncertainties stay about the continuity and firmness of the change. The problems concentrate in the high level of Deficit and Public Debt, especially in the rate of growth of both.This, in addition to the rates of unemployment, supposes serious difficulties to face up, on the one hand to the obligations resulting from the indebtedness, and on the other to the unemployment subsidies.

All this aggregates to the consequences of the financial crisis that still subsists, leading to serious problems already mentioned in a certain number of countries of the EMU that jeopardize the system and the recovery.

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SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 9 1. GENERAL CONTEXT

•••

Referring to the DEMAND, the Final Consumption Expenses show a rate of –2.7% (0.9% in 2008). On the other hand, Home Consumption which represents a high percentage on the total, descends –5.0%, deepening the fall of –0.6% experienced in 2008 and positive rates appear solely in the Expenses of the Public Administrations and NPIs, corresponding to the first ones a considerable value of 3.8%, below that of 5.5% obtained in the previous year, showing a negative value in the inter-quarterly variation of the last quarter.

Investment with a fall of Total GFCF of –15.3% loses strength intensifying the negative value of –4.4% in 2008, and it is the Investment in Capital Goods the one showing the worse rate of –23.1% that is accumulated to –1.8% of 2008. Inside this variable, Investment in Capital Goods and Machinery plunges by 26.5% (0.0% in 2008), with a series throughout the year that seems to lose intensity only in its strong fall (–27.1; –31.0; –27.6; –19.8), Tele-management system for monitoring, controlling, measuring circumstance that is reflected in the inter-quarterly rates (–7.9; –5.2; and managing external lighting 0.6; 2.5), with positive notes in both last quarters. 2008 and the Cover Rate remained in 75.9% improving 66.7% of The other component, Transport Equipment, shows a drop of the preceding year. –15.0% (–5.5% in 2008). GFCF also descends in Construction, –11.2%, increasing the negative rate of –5.5% obtained in the preceding year, Finally, the Balance of Payments as % of GDP is valued at –5.4% being housing the most harmed, –24.5%, and the best Other versus –9.6% of 2008. Constructions, with the only positive rate of 1.6%. Referring to Investment in Other Products, it falls by –17.3% aggravating the data — The evolution of the Prices reflects the fall of the demand and the of –4.1% in 2008. CPI finishes the year at an average value of –0.3%, with very strong containment from 4.1% of 2008 and a quarterly evolution Therefore, the Domestic Demand makes a negative contribution of showing two negative values (0.5; –0.7; –1.1; 0.1). –6.4 percent to the growth of the GDP (far beyond –0.5 percent of the previous year, with a loose behaviour throughout year (–6.3; –7.4; — On the other hand, Public Accounts undergo a continuous –6.6; –5.3). deterioration: Public Deficit reaches –11.2% of GDP with a serious ascent from –4.1% of 2008.The quarterly series indicates On the other hand the External Demand contributes 2.8 percent the rate of growth (–5.8; –8.8; –10.3; –11.2) and the Public Debt (% improving the 1.4 percent of 2008, but the series loses some force the GDP) reaches 53.2%, that stays in acceptable limits, but its (3.0; 3.2; 2.6; 2.2).This behaviour comes from an Import of Goods and accelerated growth from 39.7% in 2008 worries, with an evolution Services that backs down considerably –17.9% (–4.9 in 2008) and that marks the tendency of a fast ascent (43.0; 47.1; 49.7; 53.2) the annual series maintains very negative rates, but in reduction (–22.3; –21.7; –17.0; –9.6). Exports of Goods and services loses — The evolution of Employment is the most worrisome indicator –11.5% far beyond –1.0% of 2008, and the evolution throughout the along with the above mentioned Public Accounts.Thus, the year only reflects less relevant negative slopes (–16.6; –14.7; –10.7; –2.9). number of Employed persons (EPA) descends –6.7% when in 2008 the loss was –0.6% while the Unemployment Rate (% on the ••• active population) reaches 18.0% (11.3% in 2008). It is necessary to consider that the adjustment of the active population OTHER NUMBERS OF THE ECONOMY moderates this rate. Finally, the Affiliation to the Social Security backs down (monthly average) –5.8% (–0.5% in 2008). — Completing the view of the Foreign Sector, Exports in terms of Customs descended –15.9% (–9.8% in constant terms) losing pace The Labour Costs reduce their increases; thus, the Agreed Wage against +2.3% of 2008, and Imports fell bulkily –26.2% –17.4% (in Increase (Collective Agreements) is placed in 2.5% that is clearly constant terms) increasing – the rate of –0.6% of the previous year. below 4.7% of 2008, and the Labour Cost per Unit Produced Thus, the Commercial Deficit of the Trade Balance contracted by (CLU) experiences an increase of 0.4% from 4.5% of the previous 46.7% (value) increasing the reduction of 5.9% obtained in the year.

10 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 1. GENERAL CONTEXT

Table 1 Original 2008, Incr % 2009, Incr % 2010, Incr % weight* (Estimate) (Forecast) GDP 100 0.9 –3.6 –0.6

Demand Expenses on final consumption 77.2 0.9 –2.7 Homes 55.0 –0.6 –5.0 0.2 NPIs 1.0 0.8 3.1 Public Administrations 21.2 5.5 3.8 –0.1

Gross Capital Formation 24.4 –4.4 –15.3 –7.6 Capital Goods 5.8 –1.8 –23.1 –1.4 Metallic products and Machinery 3.8 0.0 –26.5 Transport equipment 2.0 –5.5 –15.0 Construction 14.4 –5.5 –11.2 –19.7 Housing 5.9 –10.3 –24.5 –17.4 Other construction 8.5 –0.4 1.6 –4.9 Other roducts 4.2 –4.1 –17.3 Agricultural Products 0.0 –44.6 –8.5

Stock Variation 0.5 0.1 0.0 *Domestic Demand 102.1 –0.5 –6.4 –1.8 *External demand –2.1 1.4 2.8 1.1 Exports of Goods and Services –1.0 –11.5 7.5 Imports of Goods and Services –4.9 –17.9 2.6 (*) Contribution to GDP in percentage points.

Supply GAV 92.9 1.1 –3.8 Agriculture 2.3 –0.8 –2.4 Industry 11.7 –2.1 –14.7 Energy 2.3 1.9 –8.2 Construction 10.0 –1.3 –6.3 Services 66.6 2.2 –1.0 TAXES 7.1 VAT 4.1 –1.4 –4.1 Import Duties 0.1 –1.0 –10.2 Other taxes 2.9 –0.5 2.1

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 11 1. GENERAL CONTEXT

2008, Incr % 2009, Incr % 2010, Incr % INDEX OF INDUSTRIAL PRODUCTION –7.3 –15.8 0.5 PUBLIC ADMINISTRATION DEFICIT, AS % GDP. –4.1 –9.7 –10.8 BALANCE OF PAYMENTS ON C A (% OF GDP) –9.6 –5.4 –5.2 UNEMPLOYMENT RATE, AS % OF ACTIVE POPULATION 11.4 18.0 19.4 CPI (ANNUAL AVERAGE) 4.1 –0.3 1.6 UNIT COST OF LABOUR 4.6 0.4 –0.7 Nº OCCUPIED (EMPLOYMENT) –0.6 –6.7 –2.8 Sources: National Statistics Institute and Bank of Spain.

6 FOREIGN TRADE OF GOODS, IN CURRENT EUROS 6 2008/2007 in % 2009 in 10 € 6 2009/2008 in % EXPORTS 2.3 158,256 –15.9 IMPORTS –0.6 208,440 –26.2 TRADE BALANCE –4.9 50,184 –46.7 COVER RATE (EXP/IMP) IN % 1.8* 75.9 9.2* Source: Customs and Special Taxes Department. (*) Change in percentage points.

ACTIVITY OF THE SECTORS the evolution confirms the tendency of the other indicators (–30.4; –28.0; –21.8; –4.7). In accordance with the macroeconomic values examined before, the main sectors have had a depressive behaviour. The IPI of Capital Goods in particular loses a concerning –22.1% from a value that was already negative in 2008, –8.8%.The rate is the worse (2) Thus, the Index of Production of the Construction falls –16.8% one inside the sectors of industrial activity, except for Consumer (–16.3% in 2008) and the annual series (–17.3; –16.8; –23.4; –10.1) with Durable Goods and the march per quarters does not abandon negative continuous negative rates, shows only an attenuation in the values, although attenuated (–30.5; –24.7; –20.2; –10.3). reductions. The different Branches of Activity (CNAE 09) that are traditionally On the other hand, the Index of Turnover of the Service Sector considered within the sector of Capital Goods show very loose shows an inter-annual variation of –13.6% that aggravates –3.5% of behaviour in evolution of their respective IPIs. the previous year and the evolution throughout year (–18.2; –16.9; –13.3; –5.3) shows once again certain decreasing tendency within the Metallic Products present a rate of –23.3% much below the one continued series of losses. obtained in the previous year of –9.6% and the series (–30.3; –28.2; –19.7; –12.3) reflects a continued although cushioned loss. We pay a special attention to the INDUSTRIAL SECTOR and in particular to CAPITAL GOODS.

In the Industrial Production (IPI) the descent of –7.3% initiated in 2008 worsens down to –15.8% with an evolution that moderates losses throughout the year (–22.6; –18.6; –14.6; –5.6).

The values of the Turnover Index (CNAE 2009) for the Industry altogether post rates of –21.7% (–3.0% in 2008), and the trend confirms the diminution of the strong negative tendency (–27.7; –27.6; –21.4; –8.1).

Referring to the Index of Order Intake (CNAE 2009) for the Industry altogether, it posts a rate of –22.2%, against –4.6% of 2008, although

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12 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 1. GENERAL CONTEXT

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Computer Equipment and Electronic and Optical Products lose As far as the Index of Intake of Orders (Capital Goods) is –26.3% and in 2008 they had secured a positive rate of 2.9%.Their concerned, the number is –23.1% that almost duplicates –12.5% of evolution, negative throughout all the year (–25.1; –32.5; –34.3; –13.4) the previous year.The quarterly evolution provides in the last quarter is accelerated until the third quarter. a positive data that alleviates the very strong initial reductions (–36.2; –29.9; –22.0; 4.7). Electrical Material and Equipment posts a strong descent of –26.9% that is added to –6.3% of 2008 and the negative series does Paying attention to the Use of the Productive Capacity of Capital Goods, it only remains in a scarce 72.8% with a remarkable setback not offer a breathing in its annual march; (–22.5; –35.0; –30.0; –19.4). from the value of 83.0% obtained in 2008 and the present situation Mechanical Machinery and Equipment joins the strong sets back places us in values corresponding to the worse ones of the statistical with a loss of –26.7% after the already negative value of –8.7% in the series. previous year, and the evolution maintains serious losses (–18.2; The examination of the Indicator of Domestic Availability (Capital –33.1; –30.0; –24.8). Goods) confirms the delicate situation with a rate of –27.0% consequence of an annual march (–37.1; –32.8 –25.5; –6.0) that Other Transport Material has a rate of –12.4% losing strength from supposes a worsening of the value of –20.8% obtained in 2008. the value of 5.8% obtained in 2008, that responded to the more favourable march of the railway material.The evolution intensifies The Components of this Indicator have evolved in the following losses (–3.9; –12.4; 14.8; –18.3). form:The Indicator of Production is in –25.9% versus –11.8% of 2008 and the series is once again, (–35.5; –32.2; –22.3; –9.2) in continuous Finally Repair and Installation of Machinery and Equipment drop.The indicator of Imports tumbles –30.0% reflecting the fall of descends also, –16.8%, additional to –8.8% of the previous year and the Domestic Demand that began its fall in 2008 with –17.7%.The the series (–7.7; –26.5; –7.5; –22.7) shows even worse rates in the last quarterly march maintains high negative values (–36.9; –37.0; –25.4; quarter. –17.5) although in reduction.The indicator of Exports does not get rid either of the setbacks that reach –28.9% and that do not show Consequently and considering the weight of the different branches any recovery throughout the year (–36.4; –36.8; –19.4; –24.0) The studied before, the average value obtained for the Production of announcement of the exporting difficulties began in 2008 with a Capital Goods is in the surroundings of –24%. slight fall of –0.1%.

Further, the observation of the march of the Turnover Index (Capital Finally, the Synthetic Indicator ESI (Capital Goods) presents a value Goods) provides coherent values with those examined above and of –19.8%, in accordance with the examined ones, which results in –20.3%, backing down from –5.4% of 2008. Quarterly accumulates losses to those of the previous year of –10.4%.The values (–30.1; –26.4; –16.1; –6.3) respond to the general topics. annual series sweetens the strongly negative numbers (–25.9; –25.2;

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 13 1. GENERAL CONTEXT

–18.8; –7.0), a situation that is confirmed in the quarterly rates (–9.2; In main lines, it seems that the lowest point of the negative evolution –2.4; 1.4; 3.5) where two positive values appear. is located in the second quarter as of which the steep falls sweeten.

Paying attention to the Foreign Trade of Capital Goods(3) that has Finally, the lack of reaction of the manufacturing sectors is worrisome, great importance, as much by its weight on the total of the Spanish especially those sectors of higher use of technique, like the one of foreign trade, as by the high percentage of the production which this Capital Goods. It was expected that this sector could be a basic sector devotes to the international markets, the evolution is not balance helping to overcome the situation by its influence in the satisfactory too. essential increase of the general competitiveness.

Exports descend by –12.2% and suppose a value in the range of Forecasts 2010 18% of the total exports of goods.The backward movements reach to Machinery for Industry with –17.3%, General Purpose Machinery The evolution of the data available corresponding to the first –17.0% and Other Capital Goods –15.9%, whereas advances occur quarter aims, at least, to a cushioning of the falls and in certain cases in Office Equipment and Telecommunications with 9.1%, Railway to slight ascents. Material 21.1% and in Aeronautical Equipment 6.1%. GDP falls by –1.3% against –3.3% in the first quarter of 2009,and grows On the other hand Imports back down –30.4% and represent 19.6% at 0.1% against the fourth quarter of the past year when it was –0.1%. of the total imports of goods.The reductions are: –41.9% in The forecast is a setback of –0.6% for 2010. Machinery for the Specific Industry; –28.7% in General Purpose Machinery; –43.1% in Office Equipment and Total GAV behaves with equal rates to those of GDP,to which it Telecommunications; –7.6% in Railway Material; –19.5% in follows in its evolution. Aeronautical Equipment and –18.3% in Other Capital Goods. GAV of Industry in particular descends –3.7% with regard to –15.3% Consequently the Foreign trade Deficit of Capital Goods represents of the first quarter of 2009, but it rises 2% if compared with the more than one quarter of the Spanish total deficit of goods. previous quarter, when it was only of 0.5%.

Referring to Employment, the situation shows the seriousness of the As far as the GAV of Construction is concerned the negative rates problem, the most pressing of the crisis.The reduction of the continue: –5.9% inter-annual and –2.3% inter-quarterly. Industrial Employment reaches the worrisome value of –13.3%, (–1.1% in 2008), far beyond the one of Total Employment that is Finally, in the GAV of Services the inter-annual rate is –0.2% and –6.8% (–0.5% in 2008).The numbers corresponding to the 0.0% the inter-quarterly one, practically repeating the respective Manufacturing Sector are still worse –14.6% (–1.0% in 2008) and values of reference. the quarterly series (–14.1; –15.4; –16.1; –12.9) is not encouraging. Referring to the net taxes on products, the inter-annual rate is –0.6% Consequently, the weight of employment in the Manufacturing (–1.6% in 2009) and inter-quarterly 0.4% (0.8% in 2009). Sector on the total employment is 13.3% with a considerable With regard to the Demand, the Home Expenses present inter - reduction on that it had in 2004, of 16.35%.This supposes an annual rate of –0.6%, improving on –5.5% of the preceding year, and evolution of our productive structure in sense in opposition to the the inter-quarterly rate is positive, 0.5%, that also surpasses 0.3% of one recommended by all the observers. the previous quarter.The forecast for 2010 is 0.2%. The prices reflect the contraction of the market and, thus, the IPI of On the other hand, the Expenses of the Public Administrations Capital Goods has a rate of 0.8%, substantially below 2.5% of 2008, grow 1.5%, annually, moderating 6.0% of 2009, but they result of and the evolution (1.6; 1.1; 0.4; 0.2) marks a continuous reduction. 1.4% versus the previous quarter when it was negative, –1.7%.The In SUMMARY the year 2009 accuses the extension of the crisis that forecast for 2010 is –0.1%. reaches all the sectors.The most worrisome numbers are without a In Investment Demand the Total GFCF backs down –9.9% in front doubt those related to the evolution of the employment and of the value of 2009, in which the fall was –14.9%. Compared to the unemployment, as well as those of the public accounts deficit and previous quarter the loss is –2.7%, larger than the one recorded then the fast increase of the Public debt. of –1.0%.The forecast for 2010 is –7.6%.

The rates for the GFCF in Equipment are –2.5% inter-annually and –1.2% inter-quarterly, that improve the previous inter-annual result, –24.0%, while the inter-quarterly one aggravates 3.1%, being very (3) Sub-directorate General of Analysis, Strategy and Evolution (road transportation and different the behaviour of both components.Thus, in the GFCF of ships excluded).

14 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 1. GENERAL CONTEXT

Metallic Products and Machinery the respective values result numbers of –0.2% in the first quarter that improves at least –3.8% and –1.5%.The first one supposes an improvement of –27.1% substantially –22.2% of the same quarter of 2009. obtained the first quarter of 2009, but the second one supposes a setback of 2.5% on the value corresponding to the previous quarter. IPI of Capital Goods (including transport) ,in particular, undergoes a setback of –2.5%, far below –30.5% obtained in first quarter of 2009, The evolution of GFCF in Transport Equipment is very influenced by and appears for the first time in two years with a timid positive value the aids to the automobile sector.The inter-annual rate is 0.0%, which of 0.6% in the month of March. supposes a remarkable improvement against –17.0% in the first quarter of the 2009 and the inter-quarterly one reaches –0.6%, versus Taking care of the different Branches of Activity (CNAE 09) that 4.3% of the previous quarter.The value foreseen for the GFCF in conform the Capital Goods, the panorama strengthens certain equipment is in 2010 of –1.4%. incomplete reduction of the negative rates, but with a unique specialisation in positive values. GFCF in construction maintains a depressive situation, with an inter- annual rate of –10.6% (–11.3% in the first quarter of 2009) and –3.4% Thus, the rates obtained in the first quarter of 2009 and 2010, are inter-quarterly, worse than –2.2% of the previous quarter. the forecast respectively Metallic Products: –30.3% and –5.8%;Computer and for 2010 is –9.7%. electronic products: –25.1% and 6.2%;Electrical equipment: –22.5% and –12.1%; Machinery and Mechanical Equipment: –18.2% and Consequently, the Domestic Demand contributes –2.5 percent to –20.2%; Other Transport Equipment: –3.9% and –9.8%; Repair and the GDP growth (–6.3 percent in the first quarter of 2009) and the Installation of Machinery and Equipment: –7.7% and –11.2%. External Demand 1.2 percent (3.0 percent in the first quarter of 2009).The forecast of the Domestic Demand for 2010 is 1.7 percent. Considering the different weights of each branch of activity and its evolution, the joint rate for the first quarter of 2010 in Capital Goods Thus, Exports of Goods and Services recover by 8.0% (2.0%inter- would be in the order of –10%, more negative than the index quarterly) and Imports of Goods and Services grow by 2.6% (inter- indicated above when gathering the evolution of the motor vehicles, quarterly 1.1%), being the forecast for 2010 6.7% for the Exports and 1.7% for Imports.

The Current Account Balance of Payments in % of GDP will remain at a foreseen rate of –5.2% for 2010, similar to the one of –5.4% in 2009.

Foreign trade of Goods shows better numbers, and in the period January-March exports grow 14.8% and Imports 7.5%, so the Deficit descends by –11.8%.

Little variations in Public Accounts, reaching the estimates of Deficit in % of GDP in 2010 a value in the surroundings of –9.7%, with some improvement on –11.2% of 2009.

On the other hand, the Debt in % of GDP continues its ascent, with a forecast in the order of 65.8% against 53.2% of 2009.

Employment shows a reduction in the occupation of –3.6% maintaining the decreasing tendency and a forecast in the surroundings of –2.1% for 2010.

Active population is experiencing a slight setback of –0.4% in the first quarter,while the Unemployment Rate grows in the same period by 2.7%,and being the value for the end of 2010 in the order of 19.8%.

The tendency to modest recovery of the Productive Sectors is kept. Industry, in particular, (IPI), secures a rate of +0.3% in the first quarter against the collapse of –22.6% in the same period of 2009, with a forecast of 0.5% in 2010.This situation is confirmed by the evolution of the IPI of Manufacturing Industry (CNAE 09) with Villanueva II Wind Farm in Jarafuel, Valencia

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 15 1. GENERAL CONTEXT

having the later benefitted from the governmental stimuli. Nevertheless, it is necessary to remember that the numbers in the first quarter of 2009 gave a value in the order of –23.0%, and so a considerable cut in the falls has been obtained.

The numbers obtained for the Index of Turnover and Order Intake for Capital Goods (CNAE 2009) are more optimistic

Paying attention again to the rates of the first quarter of 2009 and 2010, the values for first Index (Turnover) are –30.1% and 12.3%, with three positive values for every month, and for the second Index (Order Intake) –36.2% and 8.1% also picking up three positive values.

Finally, the examination of the Indicators of Capital Goods confirms the previous impressions by comparing, also, the first quarter of the 2009 and the first quarter of 2010.

The Indicator of Availability provides rates of –37.1% and –4.6% Hydrogen Plants, Repsol Refinery, Cartagena and its components, Production –35.5% and 5.6%; Imports –36.9% and 0.5%; Exports –34.6% and 19.3%. stimulate the technological process and the exporting capacity With identical criterion the Synthetic Indicator (SIE) gives –25.9% supported by the improvement of the competitiveness. and 3.1%.The inter-quarterly rate is also positive, 0.7% against the fourth quarter of 2009 that, nevertheless, was something larger, 3.5%.

Foreign Trade of Capital Goods(4) provides also more positive 1.3.THE CAPITAL GOODS INDUSTRY IN numbers.The annual rate of Exports is 5.0% in the first quarter and EUROPE 2.7% for Imports, responding to the damping of the reduction observed in investment in machinery. The information appearing below is based on the “Annual Report” performed by ORGALIME with the participation of SERCOBE as The evolution of Employment worries, with a fall for the member of this organization. Manufacturing sector –10.6% in the first quarter in annual rate, which supposes a slight reduction on –14.1% obtained in equal ORGALIME groups 33 national associations corresponding to 27 period of 2009. European countries which group more than 130,000 companies,

In SUMMARY, according to what has been noted, positive values The scope includes the metallic products, the mechanical equipment, appear in general lines in the inter-quarterly evolution the same as a the electrical equipment and electronic and the computer and clear diminution of the deep falls in the annual rates of the first quarter. telecommunication equipment as well as instrumentation, that are included in the chapters 25 to 28 and 32.5 of the NACE classification, However, no real growth of the economy is expected, and it will finally revision 2. maintain a backward movement, although much more moderate. A minimum reduction of the Deficit is expected with fast increase of This revision covers a new section NACE 33, which corresponds to the the Public Debt, leading to a very serious increase in the rates of services of installation and repair of machinery and equipment,.This interest that will cause new problems. section has been partly included in the offer of manufactures and, therefore, in the figures of production. The scenario is worrisome, also by the level of public and private indebtedness reached, that restricts the credit to the productive On these basis, the Production of the “Engineering Industry”in EU 27 sectors. Exports seem to improve as well as the evolution of Industry, in the year 2008 is estimated in 1,427 thousand million Euros with as much in IPI as in the Indices of Turnover and Intake of Orders, an Employment of 10.6 million people. picking up positive increases, and suggesting the line to follow for the recovery through actions that harness the industrial activity, Exports are accounted in 389,000 million Euros approximately with a volume of Total Trade (intra + extra EU) of 981,000 million Euros. Own Investment reached 45,000 million Euros.

(4) Sub-directorate General of Analysis, Strategy and Evolution (road transportation and Thus,the “Engineering Industry”that ORGALIME represents at EU level, ships excluded). accounts for more than 28% of the Turnover and 33% of Exports of the

16 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 1. GENERAL CONTEXT

European Manufacturing Industry,building up the point of spear of the Steel Products and Constructions: Its Production reaches 8% of technological industry.It contributes essentially to the competitiveness the Manufacturing Industry in Europe, and in 2009 it is estimated in and the economic development of the European Union. 379,000 million Euros, with a loss of –18.3%.

The year 2009 Employment backs down also in the range of –4%.The subsectors of steel structures and steam generators have been less affected, with It has been a very difficult year, especially in its first half, showing losses between 5% and 10%. certain signs of recovery in its last part. It has been marked by the deep economic crisis and the financial problems as well as those of Services of Installation and Repair of Machinery and Equipment: the accounts of the Public Administrations. Chapter NACE 33, recently included in the “Engineering Industry”, has undergone an evolution in the Production that has passed from It is estimated that the Volume of Production altogether has 132,000 million Euros in 2008 to 143,000 in 2009, whereas the contracted –18.4% with a reduction of Employment of –4% while Employment has decreased from 1,200,000 people occupied in 2008 Own Investment has decreased –18% in volume. to 1,150,000 people in 2009. Electrical and Electronic equipment: It supposes 11% of the Forecasts 2010 Manufacturing Industry in Europe and it is the largest industrial sector, with a production of 470,000 million Euros that has The first official data on the evolution in the year, aim to a light descended –16.7% in 2009. improvement of the sector production that began in the last months of 2009. On the other hand, the Employment fell at a rate close to –3%, being the occupied population counted in 2.9 million people. Although the portfolios of orders remain very low, the intake of new contracts increases smoothly and the stocks from finished products The Electro-technical subsector underwent a reduction in the volume descend. of production of 20%, and the setback reached also to Electronics, with deep tumbles of –40% in computers and something smaller, of Financial difficulties continue, responding to the problems financial –10%, in components. problems of the corporate banks and the States.

Mechanical equipment: It represents 9% of the Manufacturing Thus, a modest increase in the Volume of Production is expected Industry in Europe and its Production is estimated in 450,000 estimated in 1.5%. Exports will recover in the range of 2.5%, million Euros, with a reduction of –20%. Employment lost also a responding to an expansion of the demand outside the EU, especially little more than –4%, being the population occupied counted in in Asia and South America. 3,000,000 people. The low use of the productive capacity and the limitations of access The mostly affected subsectors have been those of machine tool and to credit, will force a contraction of the Own Investment of the equipment for agriculture, with negative evolutions in the range of Sector by –3.5%. All this will suppose a foreseeable new loss of –30%. Employment evaluated in –2.5%.

Incinerator for valorization of urban, hospital, animal, petrochemical wastes and contaminated soils

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 17 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

2.1.THE YEAR 2009 AND FORECASTS 2010 sizes of enterprise; only the companies of a certain size have been able to maintain good levels of activity, acting not only in The analyses that appear below are the result of the traditional SURVEY manufacturing but also taking advantage of the technological performed to an array of companies,members of SERCOBE directly or services related and with presence in the foreign markets less through the Associations,Groupings or Special Groups belonging to our affected by the crisis. Association,as well as to other significant companies of the Sector. The fall of the Investment has forced a strong containment of Prices The statistical sample(5) surveyed in this occasion reaches 156 that have backed down by –0.7%, corresponding 0.3% a Metal- companies, with a turnover of the order of 14,000 million Euros and mechanical and –1.4% to Electric-Electronic. 58,000 workers. Employment has clearly accused the situation, with a setback of The previous forecasts performed(6) have been surpassed by an even –6.8%, after five years of creation of jobs.This reveals the most more negative evolution, especially in the two first quarters, which unfavourable situation of the small size companies, with lesser seems to be sweetened in the last part of the year. endurance to the crisis.

In accordance with the statistical treatment conducted(7) the Productivity,Turnover/Employment, has evolved according to the Turnover of the Sector a reduction of –20.0%, value that agrees in values mentioned above, with a setback in the order of –15.0%. general terms with the IPI of Capital Goods, the Index of Turnover and the Synthetic Indicator, that contribute rates in this range. On the The Gross Added Value represents near 36% of the Turnover, other hand, the activity of the “Engineering Industry”in Europe has something above the traditional value, and taking into account the fallen at a rate estimated in –18.4%, thus forming an unfavourable reduction of the Turnover it is estimated to have experienced a general scenario. setback of –13.2%. Considering the evolution of the Employment, the GAV per person loses –6.87%. In any case, the turnover places us in a value in constant terms very close to the one obtained in 2004. The Own Investment of the Sector suffers from the difficult situation of the companies and supposes a value of the order of 3% The backward movements in the Turnover reach all the of the Turnover, similar to the one of the past year, which entails a specialisations: Metal-mechanical industry –19.8% and Electric- reduction in the order of –23.2%. Electronic industry –20.8%, with similar rates, and also the different Results of the activity back down and, thus, Net Earnings before Taxes experiences a fall of –26.4%, representing 8.9% of Turnover, a value below the one of the past years.

Total Personnel Expenses (TPE) gain weight as a consequence of the Turnover being in a clear backward movement and they are placed in a value slightly below 20% against 17.3% in 2008.

Taking into account the loss in Employment, TPE per person show a containment estimated in –2%, that suggests an effort in maintaining the viability of the companies and avoiding a larger loss of jobs difficult to recover.

The detail of the Foreign Trade of the Sector by specialisations and geo-economic areas is given in chapter 2.2.6 and it corresponds in this summary performing the analysis of the evolution of the global magnitudes and their interaction with macroeconomic indicators.

Negative rate for Exports of –17.0% (–15.5% in volume) in MV Switchgear for Wind Turbine Generators accordance with the reduction of international trade, and they suppose of the range of 15% of the Spanish total exports of goods that fell, as well, by –16% in volume.

Imports backed down by –34.1% (–33.6% in volume) in front to a fall

(5) Table 21, Characteristics of the statistical sample. of –26.2% (in volume) of the Spanish total imports of goods, in which (6) Annual Report 2008-June 2009 (–8%) and Advance of Results January 2010 (–18%). they have a weight of 16.5%.They reflect the numbers corresponding (7) Table 22.

18 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 2-A MAGNITUDES OF THE SPANISH CAPITAL GOODS INDUSTRY (In million Euros) Increases year-to-previous year

TURNOVER Production consumed IMPORTS EXPORTS Ratio APPARENT CONSUMPTION Year Value % inside the country/ Value % Value % Export/ Value % Incr. Apparent Consumption Incr. Incr. Production Incr. 1986 7,668 10.6 48.2 5,192 22.2 2,846 –5.4 37.1 10,013 22.5 1990 14,400 12.8 42.3 12,924 12.9 4,928 12.1 34.2 22,396 13.0 1995 16,281 16.7 27.5 15,850 16.0 10,282 11.0 63.2 21,850 19.0 2000 29,335 12.1 21.3 36,993 18.5 19,310 21.6 65.8 47,018 13.3 2003 32,375 4.4 23.0 37,131 10.9 21,293 9.7 65.7 48,213 6.9 2004 34,350 6.1 21.6 42,144 13.5 22,728 5.8 66.2 53,966 11.5 2005 37,579 9.4 22.8 45,255 7.4 24,015 6.6 64.5 58,601 9.0 2006 42,163 12.3 23.0 50,796 12.2 27,063 12.7 64.1 65,896 12.4 Change in the definition of the Customs Scope of the Sector. New series. 2007 46,632 10.6 27.6 51,400 8.9 27,065 9.2 58.0 70,967 10.4 2008 48,870 4.8 28.7 51,742 0.7 28,019 3.5 57.3 72,593 2.3 2009 38,803 –20.6 30.6 34,347 –33.6 23,662 –15.5 61.0 49,497 –31.8 Source: Sercobe and Customs and Special Taxes Department.

Table 2-B MAGNITUDES OF THE SPANISH CAPITAL GOODS INDUSTRY (In real terms) Increases year-to-previous year

Production consumed Ratio Year TURNOVER inside the country/ IMPORTS EXPORTS Export/ APPARENT CONSUMPTION Apparent Consumption Production 1986 4.9 46.4 24.2 –10.1 37.1 20.5 1990 9.7 40.1 9.6 8.4 34.2 9.9 1995 14.1 27.7 13.5 8.6 63.2 16.4 2000 10.8 21.5 17.1 20.2 65.8 11.9 2003 3.7 23.2 10.2 9.0 65.7 6.2 2004 4.1 22.0 11.4 3.8 66.2 9.8 2005 7.5 23.2 5.5 4.7 64.5 7.1 2006 8.0 23.7 8.0 8.5 64.1 8.2 Change in the definition of the Customs Scope of the Sector. New series. 2007 6.0 29.6 4.4 4.7 59.4 5.9 2008 2.7 27.5 –0.9 3.3 59.8 1.1 2009 –20.0 30.3 –34.1 –17.0 62.0 –31.5 Source: Sercobe and Customs and Special Taxes Department.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 19 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 3 MAGNITUDES OF THE SPANISH CAPITAL GOODS INDUSTRY (Deflated Indices. Base 1986=100) Year PRODUCTION IMPORTS EXPORTS APPARENT CONSUMPTION PRODUCTION/EXPORTS 1986 100.0 100.0 100.0 100.0 100.0 1990 162.7 220.7 149.3 197.5 170.7 1995 173.0 231.4 293.0 171.4 102.1 2000 299.0 518.0 527.8 353.5 163.7 2003 321.2 506.5 566.6 353.1 176.5 2004 333.4 564.2 588.3 387.8 184.2 2005 359.5 573.4 616.0 402.1 207.7 2006 388.2 617.0 665.6 434.6 224.1 Change in the definition of the Customs Scope of the Sector. New series. 2007 411.5 624.4 658.2 457.8 265.6 2008 422.8 618.7 680.0 457.1 270.6 2009 336.0 407.4 564.1 311.6 201.1 Source: Sercobe and Customs and Special Taxes Department.

to the negative rate of the Investment in Capital Goods of –23.1% In SUMMARY, the year 2009 has been especially hard for the Spanish that is gathered in the macroeconomic tables. industry of Capital Goods, marked by a situation of generalized crisis of the Spanish economy and at an international level. This behaviour of both components leads to a Deficit in the Foreign Sector that undergoes a reduction of –55.7% and supposes 26.8% of Very strong fall of the Domestic Demand and also of that coming the total Foreign Deficit of goods. from the countries of our environment, being very few exceptions recorded in Asia and South America. Therefore, the Foreign Trade Cover of the Sector is placed in 68.9%, higher than 53% of 2008, but lower than 75.9% of Total Trade of There is a high indebtedness of the States and the companies, while goods. financial difficulties and credit restrictions persist.

The Exports/Production ratio rises too, being placed in 61.0%. It has There is a concerning fall of a large number of companies, especially won more than three pp. against the one obtained in 2008 and it in the small size section, with the subsequent loss of jobs within the responds to the exporting effort of the companies, as a result of the sector itself, in the suppliers and in the induced employment. crisis of the domestic market.

In a similar way, the Degree of Domestic Self-supply (P-E/P-E+I) reaches 30.6%, something higher than 29.1% of the previous year.

Finally, Apparent Consumption or Domestic Demand (P-E+I) backs down a bulky value of –31.8%, which is in the order of magnitude of the fall experienced by the GFCF in Machinery of –27%, keeping into account the difference of scopes considered.

The evolution of the intake of orders throughout the year has special relevance.

Thus, New Contracts are –26.6% less (–26.1% in value) thus illustrating the seriousness of the crisis and originating a diminution in the portfolios of orders for the year 2010.

The drop is even higher than the one experienced by the Turnover, –20.6%, and consequently the relation New Contracts/Turnover is at 95.2%.This supposes a reduction on the value obtained in previous the year in the order of 7 pp. Systems for the control of electric motors

20 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Replacement steam generator elliptical head welding (WEC design) for Waterford 3 nuclear power plant at EEUU

Forecasts 2010

— A European context in which symptoms of recovery in the activity appear, still modest, and even weaker in the Demand.The fall in employment continues, as well as high levels of Deficit and Debt and financial problems. Evident improvements are shown at the other side of Atlantic and in the emergent countries of Asia.

— On the other hand, the Industry of Capital Goods in Europe, our main client, foresees a small recovery, after a very difficult year, that will suppose modest positive rates of the activity and a new loss of Aluminium road tanker for fuel transportation employment. The falls become moderate and some indicators as the Turnover — The Spanish economy, according to what has been seen, will not Index and the Order Intake (CNAE 09) are positive, as well as the attain positive increases, although the negative values lose Synthetic Indicator ISE. intensity and the data of the last months point to moderate surges in variables like exports and industrial activity. Employment, Debt In Foreign Trade the data picked up by SERCOBE for this first and Deficit are the most pressing problems that jeopardize the quarter, point to increases of Exports in the range of 4%. recovery. It seems possible to intuit that in the last part of 2009 a — The evolution of our Sector in 2009 described through the moderation in the very strong negative slope has taken place and Annual Survey provides very little encouraging data, especially the an inflection begins in the first months of 2010, even vacillating, march of the New Contracts with its strong setback. that is not logically collected in the survey.

Nevertheless, the evolution of the official data on the Industry of Therefore, for present year 2010, the forecast is of a slight increase Capital Goods throughout the year aims to a certain recovery the of the Turnover starting from values close to the ones obtained in same as the advances of the first quarter.This tendency is also 2004, estimated in 1%, and so it is expected to halt the loss of noticed in the evolution of Exports, essential for our Sector. employment and to maintain the situation.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 21 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 4-A MECHANICAL EQUIPMENT (In million Euros) Increases year-to-previous year

TURNOVER IMPORTS EXPORTS APPARENT CONSUMPTION Year Value % Value % Value % Value % Incr. Incr. Incr. Incr. 1986 4,726 11.2 2,791 39.7 1,707 –7.6 5,811 32.0 1990 7,596 13.6 7,489 13.8 3,245 13.2 11,839 13.9 1995 8,935 18.7 7,730 19.5 5,558 9.9 11,107 24.3 2000 14,550 9.7 17,327 12.4 9,682 17.4 22,196 8.6 2003 17,193 6.9 20,474 17.1 12,018 14.8 25,649 16.9 2004 17,907 4.2 23,673 15.9 13,414 11.6 28,167 9.8 2005 19,689 10.0 25,051 5.8 14,492 8.0 30,248 7.4 2006 21,982 11.6 27,137 15.9 15,130 6.0 33,989 17.9 Change in the definition of the Customs Scope of the Sector. New series. 2007 24,810 11.6 23,246 3.1 13,760 9.5 34,627 6.5 2008 26,328 6.1 20,041 –13.8 14,195 3.2 32,174 –7.1 2009 21,198 –19.5 12,927 –35.5 11,995 –15.5 22,129 –31.2 Source: Sercobe and Customs and Special Taxes Department.

Table 4-B ELECTRIC EQUIPMENT (In million Euros) Increases year-to-previous year

TURNOVER IMPORTS EXPORTS APPARENT CONSUMPTION Year Value % Value % Value % Value % Incr. Incr. Incr. Incr. 1986 2,941 9.7 2,400 6.6 1,140 –1.9 4,202 11.4 1990 6,805 11.9 5,434 11.7 1,682 9.9 10,556 12.1 1995 7,346 14.5 8,120 12.9 4,723 12.4 10,742 14.2 2000 14,785 14.6 19,668 24.5 9,623 26.1 24,829 17.9 2003 15,182 1.7 18,006 4.9 9,275 3.7 23,913 3.3 2004 16,442 8.3 19,987 11.0 9,321 0.5 27,108 13.4 2005 17,889 8.8 21,845 9.3 9,741 4.5 29,994 10.6 2006 19,929 13.0 23,659 8.3 11,933 22.5 31,941 6.5 Change in the definition of the Customs Scope of the Sector. New series. 2007 21,822 9.5 28,154 19.0 13,305 11.5 36,671 15.8 2008 22,542 3.3 31,701 12.6 13,824 3.9 40,419 10.2 2009 17,605 –21.9 21,430 –32.4 11,667 –15.6 27,368 –32.3 Source: Sercobe and Customs and Special Taxes Department.

22 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 5 DEFLATION INDICES 1986 1990 1995 2000 2003 2004 2005 2006 2007 2008 2009 %2009/2008 MECHANICAL EQ. 452.2 558.0 634.2 698.8 734.4 752.0 770.8 791.6 827.2 851.2 853.8 0.3 ELECTRICAL EQ. 445.8 521.8 491.5 461.8 459.9 478.3 500.8 559.4 595.7 595.7 585.6 –1.4 ELECTRONIC EQ. 238.2 244.7 260.4 262.7 256.7 252.3 245.7 242.8 246.9 249.6 246.4 –1.3 ERECTION 388.5 493.5 585.9 660.0 710.7 729.9 751.8 772.1 805.7 823.0 828.0 0.6 ENGINEERING 510.4 644.1 817.3 937.2 1,029.1 1,062.0 1,098.1 1,131.0 1,178.5 1,195.0 1,198.6 0.3 GLOBAL C. G. 398.3 466.1 491.1 512.0 521.0 530.9 540.5 561.6 585.7 597.4 593.2 –0.7 Elaborated from Industrial Price Indices and CPI, of National Institute of Statistics. (Values for 2008 are provisory). Source: SERCOBE.

MAIN MAGNITUDES OF THE TURNOVER OF THE CAPITAL GOODS INDUSTRY CAPITAL GOODS INDUSTRY (In million Euros) (In million Euros)

80,000 50,000 70,000 40,000 60,000 50,000 30,000 40,000 30,000 20,000 20,000 10,000 10,000 0 0 090807060504030201009998979695949392919089888786 86 8887 9089 91 92 9493 9695 999897 0100 05040302 0706 0908 Apparent consumption Exports Production Turnover Mechanical equipment consumed Imports Turnover domestically Electric and electronic equipment

REAL INCREASES REAL INCREASES

30 40 25 35 30 20 25 15 20 10 15 5 10 0 5 -5 0 -10 -5 -10 -15 -15 -20 -20 -25 -25 -30 -30 -35 -35 86 8887 9089 91 92 9493 9695 999897 0100 05040302 0706 0908 86 8887 9089 91 92 9493 9695 999897 0100 05040302 0706 0908 Apparent consumption Turnover Exports Imports

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 23 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

2.2. DETAILED EXAMINATION OF THE MAIN CHART OF ANSWERS IN THE SAMPLE (% of the number of companies per interval VARIABLES AND THEIR EVOLUTION of the variable surveyed) ACCORDING TO INDUSTRIAL BRANCHES AND SIZE OF COMPANIES 40 35 2.2.1.Turnover 30 The activity sets back at a rate estimated in –20% (20.6% in current 25 terms) versus +2.7% of 2008, according to data extrapolated from the 20 survey to the whole of the Sector and the numbers are similar for 15 the different specialisations. 10 Taking exclusively care of the Sample under Study, the Turnover falls 5 –18.8% in current terms as consolidated value and –16.5% as average rate. 0 <-35 <-25 <-15 <-5 >45>35>25>15>50 >+55 Referring to the size of the companies, according to the results, the reductions reach the large companies, even with certain higher TURNOVER intensity,. Nevertheless, those that have maintained their presence in Increase <-5, 76% of companies the most active foreign markets attain a better situation.This is Increase between -5 and +5, 10% of companies Increase >+5, 14% of companies specifically the case of the general contractors of projects that Positive, 15% of companies incorporate the supply of goods and the lending of services of Negative, 79% of companies erection and engineering.

The values referring to the companies that do not have properly said CONTRACTING (NEW ORDERS) facilities by themselves, the denominated manufacturers by sub- Increase <-5, 50% of companies Increase between -5 and +5, 37% of companies contracting, could be explained as a part of the delocalisation process Increase >+5, 13% of companies that is made feel in numerous countries of the most developed Europe. Positive, 22% of companies Negative, 68% of companies The Chart of Answers of the Sample shows the extension of the crisis, with only 15% of the companies declaring increases in the Turnover.There is also a very high percentage, above 54%, with Table 6 CHANGE OF TURNOVER 2009/2008 severe reductions above 25%. In %, current terms

The table picking up the evolution of the Sector Production, defined LARGE MEDIUM SMALL TOTAL as Total Turnover minus Turnover for Sales of products in which no MECHANICAL E. M. –17.5 –24.6 –15.9 –19.5 manufacturing transformation takes place, shows the expected ELECTRIC AND descents, similar to those of the Turnover. ELECTRONIC E.M. –26.9 –4.0 –28.6 –21.9 TOTAL MANUFACTURERS –23.9 –17.1 –20.8 –20.6 M. BY SUBCONTRACTING –28.3 ERECTION CONTRACTORS 19.5 ENGINEERING FIRMS 14.1

In %, constant terms

MECHANICAL E. M. –17.7 –24.9 –16.1 –19.8 ELECTRIC AND ELECTRONIC E.M. –25.8 –2.6 –27.6 –20.8 TOTAL MANUFACTURERS –23.4 –16.5 –20.3 –20.0 M. BY SUBCONTRACTING –29.4 ERECTION CONTRACTORS 16.0 ENGINEERING FIRMS 10.4 Train washing plants Source: SERCOBE.

24 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 7 TURNOVER-COMMERCIALISATION (PRODUCTION) (Change 2009/2008, in %, real terms)

LARGE MEDIUM SMALL TOTAL MECHANICAL E. M. –15.8 –24.7 –19.2 –20.7 ELECTRIC AND ELECTRONIC E.M. –28.6 –2.5 –27.0 –21.4 TOTAL MANUFACTURERS –24.6 –16.4 –21.9 –20.8 Source: SERCOBE.

Street lighting panel

The Chart of Answers of the Sample provides some sign in this sense, when comparing the values corresponding to New Contracts with those observed above for the Turnover.Thus, the percentage of companies that declare increases in New Contracts reaches 22% and the number of companies with serious falls in New Contracts exceeding –25% is in a value below 5%. Boiler house with three vertical coil steam generators of 3.500 kg/h/unit

Table 8 CHANGE OF CONTRACTING (ORDERS) 2009/2008 2.2.2. New Contracts In %, current terms

The fall of the demand, especially intense in first half of the year, is LARGE MEDIUM SMALL TOTAL reflected in the rates of variation of the Contracted Volume that MECHANICAL E. M. 12.7 –29.2 –34.0 –23.9 according to the extrapolation of the Survey to the whole of Sector ELECTRIC AND is in –25.6% (26.1 in current terms).This is added to –5.6% of the ELECTRONIC E.M. –29.8 –26.2 –29.0 –28.5 previous year, affecting in a sharper way to the Electric-Electronic TOTAL MANUFACTURERS –16.3 –28.1 –32.0 –26.1 specialisation as well as to the companies of smaller size. M. BY SUBCONTRACTING –25.7 ERECTION CONTRACTORS –29.3 In the Statistical Sample under study a rate in the consolidated ENGINEERING FIRMS –16.3 values of –15.0% and of –22.1% for the average rate is appraised, which would confirm the worse situation of the SMEs. In %. constant terms These serious reductions of the contracted volume are without a doubt a bad symptom on the future evolution of the activity in 2010, which MECHANICAL E. M. 12.4 –29.4 –34.2 –24.1 can only be palliated when considering the monthly evolution of the ELECTRIC AND ELECTRONIC E.M. –28.8 –25.1 –27.9 –27.5 indices and indicators(8) that pick up the worse values in the first half of TOTAL MANUFACTURERS –15.7 –27.6 –31.6 –25.6 the year and positive rates in the beginning of the present year. M. BY SUBCONTRACTING –26.8 ERECTION CONTRACTORS –31.3 ENGINEERING FIRMS –19.0

(8) IPI; ICN;ISE;IEP Source: SERCOBE.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 25 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

2.2.3. Profit and Loss Account The Own Investment of the Sector, although maintaining a percentage on the Turnover in the range of 3%, slightly below the The Profit and Loss Account of the Capital Goods Industry, as a one of the past year, backs down as a result of the reduction in percentage of the Turnover, and obtained through extrapolation from Turnover –23.2%. the Sample surveyed, shows the characteristics detailed below: An expected fall of the Earnings (BT) that represent 8.9% on The evolution of different magnitudes refers to values obtained from Turnover (0.7 percent less than in the previous year), being the the sample under examination for the years 2009 and 2008, on which reduction estimated then in –26.4% and a still deeper descent of information has been requested for the survey performed in this year. –37.7% in the Operational Results.

The weight of the GAV on Turnover reaches 36.2%, above the In accordance with the above mentioned indications, the New traditional value, and in the range of 3 percent higher than the one of Contracts lose weight with regard to the Turnover, down to 95.2% of the previous year. Keeping in mind the strong fall of the Turnover, a it.This supposes losing more than 7 percentage points against the setback is admitted for GAV, somewhat deeper than –12%. value of the previous year, and so a reduction in the contracted Considering the fall in the Employment, the GAV/person descends volume of the order of 26% is confirmed. –6.9%. Analysis of the Earnings in the Companies of the Sample surveyed Personnel Expenses suppose a high percentage on the Turnover, 19.9%, more of 2.5 percent higher than those of year 2008. It is examined in this section the behaviour of the ratio percentage of Nevertheless, the high setback of Turnover and the most modest one Profit to Turnover exclusively referred to the sample of companies. of Employment, lead to a rate of –2.6% for Total Personnel The purpose is completing and clarifying the previous comments Expenses (TPE)/person. made about the Profit and Loss Account, at level of extrapolation to Financial Expenses duplicate the weight on the Turnover, and the Sector as a whole. therefore even considering the fall of the latter, an increase of 47.5% The reflection of the situation of crisis is especially appraised at Total is obtained, that responds clearly to the high indebtedness of the Sample level, in the high percentage, 9.3%, of companies that post a companies and to the difficulties for obtaining credit. very serious reduction in the ratio evaluated in –23.6%.

Table 9 PROFIT & LOSS ACCOUNT, AS % OF TURNOVER, 2009. CAPITAL GOODS INDUSTRY TOTAL LARGE COMPANIES MEDIUM COMPANIES SMALL COMPANIES PURCHASES,WORKS AND OUTSIDE SERVICES 63.8 67.4 61.2 62.7 GROSS VALUE ADDED 36.2 32.6 38.8 37.3 Total Personnel Costs 19.9 19.5 18.3 21.8 – Wages and salaries 15.4 15.2 14.2 17.0 – Social charges 4.5 4.3 4.2 4.9 Gross Margin 16.3 13.1 20.5 15.4 Financial Results 1.3 0.5 3.0 0.7 Other expenses and duties 6.2 2.0 9.0 7.5 TOTAL EXPENSES 28.3 22.6 32.5 30.5 OPERATING CASH FLOW 8.6 10.0 8.1 7.1 Provision for Amortization 2.5 2.4 2.9 2.5 OPERATING RESULTS 6.2 8.0 5.2 4.6 Extraordinary results 2.8 6.9 1.5 0.6 NET PROFIT (before tax) 8.9 14.9 6.7 5.2 100.0 100.0 100.0 100.0 CONTRACTS SIGNED 95.2 113.7 98.8 85.2 INVESTMENT 3.0 3.7 3.2 2.6 Source: SERCOBE.

26 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 10 PROFIT & LOSS ACCOUNT, AS % OF TURNOVER, 2009 MECHANICAL ELECTRIC AND ERECTION ENGINEERING MANUFACTURERS EQUIPMENT ELECTRONIC CONTRACTORS FIRMS BY SUBCONTRACTING MAN. EQUIPMENT MAN. PURCHASES,WORKS AND OUTSIDE SERVICES 62.7 64.8 64.9 44.5 76.3 GROSS VALUE ADDED 37.3 35.2 35.1 55.5 23.7 Total Personnel Costs 19.8 19.9 22.4 41.4 12.0 – Wages and salaries 15.5 15.2 17.1 33.8 9.3 – Social charges 4.3 4.7 5.3 7.6 2.6 Gross Margin 17.4 15.2 12.7 14.1 11.7 Financial Results 1.9 0.5 0.9 0.4 0.6 Other expenses and duties 7.8 4.7 1.9 0.5 4.7 TOTAL EXPENSES 30.9 25.8 25.3 42.3 17.2 OPERATING CASH FLOW 7.4 10.0 9.8 13.3 6.4 Provision for Amortization 2.8 2.2 0.7 2.0 1.1 OPERATING RESULTS 4.7 7.7 9.2 11.3 5.3 Extraordinary results 2.0 3.1 0.0 –0.8 0.1 NET PROFIT (before tax) 6.8 10.8 9.2 10.5 5.4 100.0 100.0 100.0 100.0 100.0 CONTRACTS SIGNED 94.5 96.5 53.7 95.0 75.3 INVESTMENT 2.8 3.1 1.8 5.9 1.5 Source: SERCOBE.

Table 11 GROSS VALUE ADDED In the section of values of the ratio below –5%, the situation is less serious in the Electric-Electronics specialisation that in the Metal- (Increases, % over 2008) mechanical industry, both in the number of companies and in the LARGE MEDIUM SMALL TOTAL percentages of fall of the ratio.They are in this case higher than in the MECHANICAL E. M. –10.5 –7.0 –16.3 –11.4 Total Sample. ELECTRIC AND The strong reductions of the Earnings/Turnover ratio, together with ELECTRONIC E.M. –7.8 1.0 –28.5 –12.5 fall of the Turnover, lead to the strong backward movement of the TOTAL MANUFACTURERS –8.7 –4.0 –21.0 –12.2 Earnings discussed above.

Steam turbogenerator STE for cogeneration plant Gas Colector System Excell Paper Plant , Madrid

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 27 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 12 ANALYSIS OF EARNINGS IN THE COMPANIES OF THE SURVEYED SAMPLE, 2009 P>5 P>0<5 P<–0>–5 P<–5 TOTAL SAMPLE % OF Nº COMPANIES 54.2 26.3 10.2 9.3 AVERAGE VALUE 12.9 2.2 –2.5 –23.6 SMALL COMPANIES % OF Nº COMPANIES 50.6 28.2 11.8 9.4 AVERAGE VALUE 10.5 2.3 –2.3 –23.4 MEDIUM COMPANIES % OF Nº COMPANIES 58.3 29.2 4.2 8.3 AVERAGE VALUE 20.5 2.0 –3.7 –19.6 LARGE COMPANIES % OF Nº COMPANIES 77.8 – 11.1 11.1 AVERAGE VALUE 13.1 –3.8 –3.8 –32.7 MECHANICAL. EQ. % OF Nº COMPANIES 48.1 29.6 11.1 11.1 MANUFACTURERS AVERAGE VALUE 14.4 2.1 –2.4 –24.4 ELECTRIC AND ELECTRONIC % OF Nº COMPANIES 67.6 18.9 8.1 5.4 EQ. MANUFACTURERS AVERAGE VALUE 10.7 2.6 –2.9 –19.8 P: Net earnings (profit) or loss, before tax, as % of turnover. % of Nº of Companies: Percentage of companies in the sample where P is between the stated limits. Average value: Average of P values for the companies in each range.

2.2.4. Employment 2.2.5. Personnel Expenses and Productivity

A painful loss of jobs has taken place, especially felt in an industry Considering the especial nature of these variables, cautions in requiring high level of technological qualification, with the interpreting the values and increases given for the different consequent difficulty of recovery. It is certain however that a positive specialisations and sizes are highly relevant.This is due to the small increase has occurred in the last five years. number of companies and to other well known circumstances, such as the variation in worked overtime, generational replacement in the The sets back reach with higher intensity the companies with a managing staff, changes in the percentage of fixed and eventual smaller size, whose endurance to the crisis is weaker. It also seems workers, adjustment and rebuild of payrolls and the stream of that deeper losses occur in the metal-mechanical specialisation. mergers and concentrations at international level, with its repercussion in Spain.The addition of an increasing number of Once again, a better situation is appraised in the companies of workers coming from migratory movements should not be services. neglected. The results, according to the extrapolation of the Survey to the entire Personnel expenses Sector, represent –6.8%. In the Sample under study the rates are something lower, –5.1% for the average of increases and of –3.3% for Total Personnel Expenses per person and year rank for the whole the consolidated value. of the Sector in the range of 46,000 Euros, corresponding 10,000 Euros to Social Charges and 35,000 to Salaries and Wages.

Table 13 EMPLOYMENT (Change 2009/2008, in %) The global variations at Sector level point to negative rates in the range of –2% for the Total Expenses that respond to desire of LARGE MEDIUM SMALL TOTAL containing the loss of employment by means of the joint effort of MECHANICAL E. M. –4.9 –9.8 –7.3 –7.7 companies and workers. ELECTRIC AND ELECTRONIC E.M. –2.2 –2.3 –10.7 –5.5 However, an inevitable increase of the Social Charges is appraised, TOTAL MANUFACTURERS –3.3 –6.4 –8.1 –6.8 something larger than 1% and reductions logically over 2% in the M. BY SUBCONTRACTING –6.5 Wages and Salaries. ERECTION CONTRACTORS 12.7 ENGINEERING FIRMS 9.6 On the other hand, the higher loss of employment in the Metal- mechanical specialisation seems reflected in the negative variations, Source: SERCOBE. whereas increases are observed in Electric-Electronic specialisation.

28 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Productivity

According to what has been discussed, the evolutions of the Turnover and the Employment lead to a setback movement of the Gross Productivity at Sector level of –15%, number that is confirmed in the present table.

The value of the Gross Productivity is placed for the whole in the range of 237,000 Euros/person-year.The Net Productivity is in the range of 190,000 Euros/person-year and the one of the Personnel Expenses is about 5,200 Euros/person-year.

Finally,the Labour Costs per Unit measured by the difference between the increases of the Labour Costs per person and the Turnover per person,is estimated in +13%.This number is consequence of the 25MVA ONAN transformer with vegetable oil in hardness of the crisis that produces negative increases in both ratios. desalinization plant

Table 14 PERSONNEL COSTS, 2009 Values in thousand euros per person and year. % change over 2008

TOTAL PERSONNEL COSTS TOTAL SOCIAL CHARGES WAGES AND SALARIES Value % change Value % change Value % change LARGE COMPANIES 52.3 –2.3 11.6 4.2 40.7 –4.0 MEDIUM COMPANIES 47.4 0.9 10.9 5.4 36.5 –0.4 SMALL COMPANIES 39.7 –3.0 8.8 –2.9 30.9 –3.1 MECHANICAL EQUIPMENT MANUFACTURERS 46.5 –5.4 9.5 –5.0 34.3 –4.7 ELECTRIC AND ELECTRONIC EQUIPMENT MANUFACTURERS 46.0 3.1 11.0 9.8 35.0 1.1 TOTAL MANUFACTURERS 46.0 –1.8 10.2 1.6 35.0 –2.4 ERECTION CONTRACTORS 40.2 –5.3 9.6 –2.3 30.7 –6.2 ENGINEERING & CONSULTING FIRMS 57.7 4.7 10.6 3.8 47.1 5.0 MANUFACTURERS BY SUBCONTRACTING 48.0 2.0 10.6 3.5 37.5 1.6 Source: SERCOBE.

Table 15 PRODUCTIVITY,2009 Values in thousand euros per person and year. % change over 2008

GROSS NET PCP Value % change Value % change Value % change LARGE COMPANIES 268.0 –20.8 215.7 –24.3 5.1 –19.1 MEDIUM COMPANIES 252.8 –10.6 205.5 –12.9 5.4 –10.4 SMALL COMPANIES 181.9 –12.1 142.2 –14.4 4.6 –9.5 MECHANICAL EQUIPMENT MANUFACTURERS 226.0 –13.4 182.1 –15.1 5.1 –8.3 ELECTRIC AND ELECTRONIC EQUIPMENT MANUFACTURERS 270.2 –19.3 216.5 –23.1 5.9 –19.4 TOTAL MANUFACTURERS 236.7 –15.3 189.9 –18.1 5.2 –13.1 ERECTION CONTRACTORS 179.3 –23.4 139.1 –25.9 4.5 –24.9 ENGINEERING & CONSULTING FIRMS 139.6 5.9 81.8 9.7 2.4 11.9 MANUFACTURERS BY SUBCONTRACTING 400.7 4.2 352.7 3.8 8.3 –0.5 GROSS:Turnover/Employment. NET:Turnover-Total Personnel Costs/Employment. PCP:Turnover/Personnel costs. Source: SERCOBE.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 29 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

2.2.6. Foreign Trade As far as the Imports are concerned,the very strong reduction of –33.6% (0.7% in 2008) accuses the fall of investment and the quarterly After analysing in the corresponding chapters(9) the Spanish Foreign march maintains very high negative numbers (–36.6; –39.4; –34.2; –22.9). Trade of Capital Goods in general aspects and its relation with the basic magnitudes of the Sector, we shall examine now the particular evolution of the different specialisations, as well as their breakdown by geo-economic areas.

The numbers appear in current terms, using the CPA (classification of products by Activity) breakdown.

Let us remember that the Exports contracted by –15.5% against a growth of 3.5% in 2008, and the quarterly evolution indicates, as in a large extent the macroeconomic numbers, the second quarter as the most critical point after which the very severe falls sweeten (–16.6; Heat recuperator –2.3; –11.9; –10.6).

Table 16 SPANISH FOREIGN TRADE OF CAPITAL GOODS, 2009 (Values in thousand Euros)

IMPORTS EXPORTS Value % change % of Value % change % of over 2008 total over 2008 total FABRICATED METAL PRODUCTS 1,704,190 –38.5% 5.0 2,377,709 –27.4% 10.0 MECHANICAL MACHINERY AND EQUIPMENT 13,836,383 –32.5% 40.3 10,625,680 –20.2% 44.9 ELECTRO-TECHNICAL MACHINERY AND EQUIPMENT 6,149,552 –19.0% 17.9 5,587,586 –13.6% 23.6 ELECTRONIC EQUIPMENT 11,338,331 –38.0% 33.0 2,815,006 0.2% 11.9 TRANSPORTATION MATERIAL 1,313,905 –49.6% 3.8 2,255,794 4.2% 9.5 NON-METAL PRODUCTS 4,188 26.4% 0.0 575 10.9% 0.0 TOTAL CAPITAL GOODS 34,346,548 –33.6% 100.0 23,662,348 –15.5% 100.0 Source: Department of Customs and Special and Special Taxes and own processing.

Table 17 SPANISH FOREIGN TRADE OF CAPITAL GOODS, 2009. FABRICATED METAL PRODUCTS (Values in thousand Euros)

IMPORTS EXPORTS Value % change % of Value % change % of over 2008 total over 2008 total Piping: welded, seamless, fittings, etc. 890,022 –44.4% 2.6 1,078,204 –35.9% 4.6 Structures, sluices, factory buildings, bridges, towers 149,871 –19.5% 0.4 207,678 –17.9% 0.9 Plate working, tanks, reservoirs and vessels, reactors 322,081 –46.1% 0.9 511,917 –19.1% 2.2 Boilers and nuclear reactors 165,477 55.6% 0.5 294,485 13.8% 1.2 Wire products 176,739 –36.8% 0.5 285,425 –36.1% 1.2 TOTAL METAL FABRICATED PRODUCTS 1,704,190 –38.5% 5.0 2,377,709 –27.4% 10.0 Source: Department of Customs and Special Taxes; own processing.

(9) Paragraph 1.1.2 - Source: Sub-directorate General of Analysis, Strategy and Evaluation. Excluding: Road Transport Material and Ships Paragraph 1.2.2.6- Source: Customs. Elaboration by Sercobe.

30 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 18 SPANISH FOREIGN TRADE OF CAPITAL GOODS, 2009. MECHANICAL EQUIPMENT & MACHINERY (Values in thousand Euros)

IMPORTS EXPORTS Value % change % of Value % change % of over 2008 total over 2008 total MACH. FOR THE PROD. AND USE OF ENERGY 2,678,451 –29.8% 7.8 1,539,597 –27.8% 6.5 Engines 1,245,810 –0.3% 3.6 654,203 –19.1% 2.8 Turbines 1,069,955 –23.4% 3.1 586,463 –9.2% 2.5 Pumps and compressors 472,788 –17.0% 1.4 427,374 –18.1% 1.8 Valves 1,240,967 –30.3% 3.6 1,155,322 –17.9% 4.9 Transmission elements 6,707,971 –23.9% 19.5 4,362,959 –20.9% 18.4 GENERAL PURPOSE MACHINERY 473,898 –16.8% 1.4 414,898 –16.8% 1.8 Furnaces and Burners 832,666 –40.1% 2.4 1,039,406 –26.9% 4.4 Lifting and Handling 371,588 –37.1% 1.1 367,037 –22.2% 1.6 Cooling,Ventilation and Air Conditioning 570,753 –34.5% 1.7 300,425 4.6% 1.3 Filtering, Purifying and Centrifugation 609,539 –24.0% 1.8 443,713 –14.2% 1.9 Weighing and Dosing 32,471 –34.7% 0.1 39,290 –31.0% 0.2 Fire Fighting Equipment 268,289 9.5% 0.8 271,022 –9.6% 1.1 Other General Purpose Machinery 3,159,204 –30.1% 9.2 2,875,791 –19.1% 12.2 AGRICULTURAL MACHINERY 832,019 –40.4% 2.4 416,086 –15.5% 1.8 MACHINE-TOOLS 339,957 –55.4% 1.0 685,474 –27.8% 2.9 SPECIAL PURPOSE MACHINERY 130,799 –41.7% 0.4 223,386 13.4% 0.9 Machinery for Metallurgy, Iron and Steel 1,278,128 –53.1% 3.7 678,607 –27.4% 2.9 Mach. for Construction, Public Works and Mining 138,930 –28.1% 0.4 187,943 –3.9% 0.8 Mach. for Food Proc., Beverage, Preserves and Tobacco 332,588 –16.0% 1.0 213,150 –21.7% 0.9 Mach. for Textile, Leather and Footwear Industries 221,772 –31.9% 0.6 203,795 –32.9% 0.9 Mach. for Cellulose, Paper and Cardboard 130,410 –39.6% 0.4 102,411 –10.8% 0.4 Printing and Graphic Art 188,370 –37.8% 0.5 279,348 –7.6% 1.2 Rubber and Plastic 80,667 –26.0% 0.2 93,358 –7.6% 0.4 Surface Treatment 295,568 –42.3% 0.9 303,372 –19.4% 1.3 Other Special Purpose Machinery 2,797,232 –44.1% 8.1 2,285,370 –18.3% 9.7 TOTAL MECHANICAL EQUIPMENT & MACHINERY 13,836,383 –32.5% 40.3 10,625,680 –20.2% 44.9 Source: Department of Customs and Special Taxes; own processing.

Cracking Furnace. Ammonia Plant Reformer Harps Power Transformers (170 MVA/245 kV )

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 31 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

Table 19 SPANISH FOREIGN TRADE OF CAPITAL GOODS, 2009. ELECTRIC AND ELECTRONIC MATERIAL AND EQUIPMENT (Values in thousand Euros)

IMPORTS EXPORTS Value % change % of Value % change % of over 2008 total over 2008 total Motors, generators and transformers 2,376,693 –5.8% 6.9 2,625,420 –1.7% 11.1 Equipment for electric distribution and control 1,063,658 –32.3% 3.1 627,213 –11.9% 2.7 Electric wires and cables 1,203,722 –25.8% 3.5 1,035,401 –29.1% 4.4 Accumulators, primary cells and batteries 244,280 –23.2% 0.7 351,122 –12.8% 1.5 Lighting 719,248 –13.3% 2.1 416,067 –19.3% 1.8 Other Electric Material 541,951 –25.6% 1.6 532,363 –24.3% 2.2 ELECTRO-TECHNICAL MACH. AND EQUIPMENT 6,149,552 –19.0% 17.9 5,587,586 –13.6% 23.6 Office Equipment and Computers 3,253,160 –17.9% 9.5 688,091 9.1% 2.9 Radio,TV and Communication Equip. and Appar 5,158,523 –53.4% 15.0 1,164,705 13.5% 4.9 Electronic Components 1,271,830 –80.0% 3.7 747,168 64.6% 3.2 Radio,TV 536,330 –39.1% 1.6 159,619 –31.9% 0.7 Telecommunication 3,350,363 –13.0% 9.8 257,918 –23.7% 1.1 Measuring, Navigation and Precision Instru. 2,926,648 –9.8% 8.5 962,210 –16.6% 4.1 Electro-medicine Apparatus 1,445,869 –8.9% 4.2 397,109 –6.5% 1.7 Measuring, Checking and Testing Appliances 1,213,056 –8.7% 3.5 510,462 –24.2% 2.2 Navigation and Detection Apparatus 58,187 3.5% 0.2 12,110 7.0% 0.1 Industrial Process Control Equipment 209,536 –23.7% 0.6 42,529 –2.8% 0.2 ELECTRONIC EQUIPMENT 11,338,331 –38.0% 33.0 2,815,006 0.2% 11.9 TOTAL ELECTRO-TECHNICAL + ELECTRONIC 17,487,883 –32.4% 50.9 8,402,592 –9.4% 35.5 Source: Department of Customs and Special Taxes; own processing.

Table 20 SPANISH FOREIGN TRADE OF CAPITAL GOODS, 2009. TRANSPORT MATERIAL (Values in thousand Euros)

IMPORTS EXPORTS Value % change % of Value % change % of over 2008 total over 2008 total Special Purpose vehicles 179,982 –63.5% 0.5 246,069 –42.5% 1.0 Railway Equipment 689,273 –10.2% 2.0 997,488 11.0% 4.2 Aircrafts 444,650 –67.0% 1.3 1,012,237 20.7% 4.3 TOTAL TRANSPORT MATERIAL 1,313,905 –49.6% 3.8 2,255,794 4.2% 9.5 Source: Department of Customs and Special Taxes; own processing.

Generation control center

32 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

BREAKDOWN ACCORDING TO SPECIALISATIONS

— METALLIC PRODUCTS. Exports descend –27.4%, much more than the average of the sector and its quarterly behaviour shows a progressive deterioration from the increase of 8.4% obtained in 2008 (7.6; –3.6; –34.0; –35.5).

Its weight on the total of the sector exports descends down to 10.0% being Pipes and Fittings the most outstanding component, with serious backward movements, whereas Steam Generators and Nuclear Reactors obtain the single growth within the specialisation, maintaining a line of firmness throughout years, which proves the competitiveness of this industry.

Imports fall with force, –38.5%, next to the sector average, but their weight on imports for the whole sector stays at 5.0% and the quarterly march maintains the strong setback (–33.9; –42.7; –43.5; –34.8). Portainer Cranes with lifting capacity of 65 tons — MECHANICAL MACHINERY AND MECHANICAL EQUIPMENT. Exports fall by –20.2% (0.3% in 2008), representing approximately 45% of the sector exports, and evolve throughout the year with • Agricultural Machinery. Scarce Exports, with a weight of 1.8%, certain moderation in negative values (–24.9; –25.6; –16.9; –12.3). losing –15.5% and its quarterly series reflects a single positive value Imports, with a weight of 40.3% on the sector as a whole accuse a in the last months (–31.1; –34.4; –31.8; 44.0). loss of –32.5% and the quarterly series presents also negative trends (–40.2; –37.1; –30.4; –19.9), from a beginning of large Also Imports are short, 2.4% of the total, with substantial negative contraction that had begun in 2008 with a rate of –11.1%. rates of –40.4%, already initiated in 2008 with –9.0%, that worsen throughout the year except in the fourth quarter (–36.4; –68.9; • Machinery for the production and use of energy. Reductions in –41.4; –17.3). Exports worsen, from –10.2% in 2008 to –20.9%, although the backward movements are losing force (–34.6; –28.8; –11.2; –2.2) • Machine Tool. Concerning deterioration of the Exports that had Thermal Motors fall with larger intensity while Pumps and achieved an increase of 13.7% in the already difficult previous year, Compressors do that more moderately, within a specialisation that and which fall –27.8% in the present one, being its weight 2.9%.The represents a substantial part of the sector exports, 18.4%. quarterly tendency is a sign of these difficulties (–14.1; –26.3; –29.4; –37.2). Imports, 19.5% of the total of the sector, intensify their setback down to almost –24%, from –15.5% in 2008 and within the general The weakness of the domestic market is reflected in the rate of tonic their quarterly fall moderates (–38.6; –29.9; –16.0; –4.1). –55.4% of Imports, while their weight falls until little a scarce one percent, with an evolution in seriously negative values (–59.7; –57.1; • General Purpose Machinery. A loose behaviour of Exports is –59.2; –44.3). observed, descending by –19.1% and representing 12.2% of the total sales of the sector.The progression obtained in previous year • Special Purpose Machines. Export of all their chapters present of 9.0% has been deteriorated throughout the quarterly series negative rates, except in equipment for Iron and steel industry and (–20.6; –23.6; –15.0; –16.7). Metallurgy, and are particularly weak in the Machinery for Construction and Public Works.The altogether rate is –18.3% that Handling and Lifting Equipment is prominent for its weight in the falls sharply from the increase of 10.5% obtained in the previous specialisation and its remarkable reduction, whereas the Filtration year. Its weight within the general exports stays at 9.7%, and the Equipment of is the only one with a positive rate. quarterly data do not show tendencies to an improvement (–9.0; –19.1; –22.9; –20.7). Imports back down –30.1% (with a weight of 9.2%), after having obtained a fall of –7.2% in 2008, and the deterioration is continuous Imports, with a reduction of –44.1%, accelerate the drop of –18.5% in all the quarters (–33.0; –24.0; –32.8; –30.4) being especially of 2008, and once again the Equipment for Construction and Public intense in equipment related to Construction, such as handling and Works are those that obtain deeper reductions, being the quarterly lifting. series (–46.8; –50.7; –45.8; –31.3) and their weight 8.1% of total.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 33 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

• Computers and Office Equipment.Their Exports increase by 9.1%, maintaining the tendency initiated in 2008 that obtained a rate of 3.8%, with an irregular quarterly series (20.8; 0.0; 11.1; 6.2) and increasing its weight until 2.9%.

Within the general tendency, Imports lose –17.9%, increasing the drop of –7.1% in 2008.The quarterly march maintains a negative tendency (–21.5; –20.8; –15.6; –13.8), but with a weight on the total of 9.5%.

• Radio,TV and Telecommunication Components and Equipment. Exports achieve a good year with an increase of 13.5%, overcoming the reduction of –2.2% in 2008.The evolution shows a strong reaction in the second half, which would have to be confirmed in the coming months (–22.4; –6.8; 31.1; 45.7). It should be outlined that Components are responsible of this ascent, whereas the specialisations of Radio,TV and Telecommunication show very remarkable setbacks.

Thus, its weight altogether on the total exports of the sector remains at 4.9%.

Imports lose a very serious figure of –53.4%, their weight being reduced to 15%, after having obtained a surprising rise of 36.5% in 2008.There are no indications of recovery in the quarterly series, reaching the bad results all the chapters of this specialisation (–54.0; –63.9; –58.1; –30.1).

Wind Generator with a Power 3 MW and 110 m rotor diameter • Instrumentation, Measurement and Control. Negative rates in Exports of –16.6% (–10.9% in 2008), that reaches all the chapters, except Navigation and Sensing equipment, as well as their — ELECTRO-TECHNICAL MACHINERY AND EQUIPMENT. Exports quarterly data, very erratic (–27.6; –23.4; 7.0; –13.8), being its lose strength, –13.6%, from the increase of 8.0% obtained in 2008, weight 4.1%. but they continue representing a considerable weight of 23.6% on total exports of the sector.Their evolution in the year shows an Analogous situation for Imports, that fall by –9.8% (–1.4% in 2008), attenuation of this reduction (–21.1; –22.9; –5.3; –1.1). Motor- but they continue representing a considerable 8.5% on imports of Generators and Transformers, that are the largest chapter, gather the sector altogether.The reductions are repeated in all the less negative rates. chapters, especially the Industrial Process Control Equipment, and the quarterly rates reduce their negative values only in the last Imports descend, –19.0% (5.7% in 2008) with a participation of quarter (–10.5; –12.5; –12.2; –4.4). 17.9% on the total, and quarterly rates appear very irregular (–19.7; –25.5; –3.1; –21.4). • Transport Equipment. It is confirmed as a specialisation with capability of presence in the international markets, both in what — ELECTRONIC EQUIPMENT.They achieve a positive rate in refers to Railway Material and the Aerospace Industry. Exports grow Exports, although minim, of 0.2%, that was –4.7% in the at 4.2% after having increased at 15.1% in 2008, and represent 9.5% preceding year, reaching therefore a weight of almost 12%. After a of the total exports. single very loose year, the evolution reaches a good second half (–15.1; –12.6; 18.3; 13.2). Imports, descend nevertheless –49.6% (–5.7% in 2008) responding to the fall of a weak domestic market and they represent 3.8% of On the contrary, Imports drop severely by –38.0% changing the the total. ascending trajectory of the previous year, which represented an increase of 16.1%, and consequently their weight on the total remains at 33% through rates that provide a quarterly behaviour of serious fall (–37.8; –47.6; –44.3; –20.2)

34 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

MOST PROMINENT SECTORS SECTORS WITH A LARGER INCREASE IN EXPORTS OF CAPITAL GOODS IN EXPORTS

% ON % CHANGE % INCREASE TOTAL 2009/2008 Electronic components 64.6% Motors, generators and transformers 11.1 –1.7% Aerospace Equipment 20.7% Non-electric motors and engines 6.5 –27.8% Boilers and nuclear reactors 13.8% Transmission systems 4.9 –17.9% Machinery for iron and steel industries 13.4% Pipes:Welded, seamless, fittings, etc 4.6 –35.9% Railway material 11.0% Lifting and handling equipment 4.4 –26.9% Mineral non-metallic products 10.9% Electric cables and wires 4.4 –29.1% Office equipment and computers 9.1% Aerospace Equipment 4.3 20.7% Navigation and Detection devices 7.0% Railway Material 4.2 11.0% Filtering, purifying and centrifuging equipment 4.6% Electronic components 3.2 64.6% Office equipment and computers 2.9 9.1% SECTORS WITH A LARGER INCREASE IN IMPORTS

MOST PROMINENT SECTORS % INCREASE IN IMPORTS OF CAPITAL GOODS Boilers and nuclear reactors 55.6% % ON % CHANGE Mineral non-metallic products 26.4% TOTAL 2009/2008 Other general purpose machinery 9.5% Telecommunication equipment 9.8 –13.0% Navigation and Detection devices 3.5% Office equipment and computers 9.5 –17.9% Non-electric motors and engines 7.8 –29.8% SECTORS WITH LARGEST COVER RATIO Motors, generators and transformers 6.9 –5.8% (EXPORTS / IMPORTS) Electro-medical Equipment 4.2 –8.9% Aerospace Equipment 227.6 Machinery for construction, public works and mining 3.7 –53.1% Machine tools 201.6 Electronic components 3.7 –80.0% Boilers and nuclear reactors 178.0 Turbines 3.6 –0.3% Machinery for iron and steel industries 170.8 Transmission systems 3.6 –30.3% Wire products 161.5 Apparatuses for measurement, control and analysis 3.5 –8.7% Plate-working:Tanks, vessels and reactors 158.9 Rubber and plastic 148.3 Railway material 144.7 Accumulators, cells and batteries 143.7 Structures: Sluices, industrial buildings, bridges, towers 138.6

Top range roller very convenient for big productions Rotary piercing machine for production of seamless steel tube

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 35 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

BREAKDOWN OF FOREIGN TRADE BY — Rest of Europe GEO-ECONOMIC AREA Our exports descend to the area but with medium intensity, being Turkey the unique outstanding client in which the Spanish sales back — European Union down very slightly. Within the recessive general context, the Exports descend with a rate next to the average; it continues being, by far, our main client and The Spanish imports fall with force and have little signification. maintains practically its weight. France, Germany and Portugal are in — EFTA this order, the three first receiving countries of our sales. Our exports lose over the average, as much in Switzerland as in Also our purchases fall, rather less than the average of the sector, and Norway, and it backs down as area of destination. thus their weight approaches 70% of the total. Germany, Italy, France Imports undergo a reduced drop and so the area gains weight and and the Netherlands are among the five main providers. Switzerland stays in the list of relevant suppliers — USA + Canada — Rest of the world They appear in third place as main geo-economic area of destination of As clients of some weight, Russia stays, although with very our exports,but these countries show a strong reduction and lose almost remarkable reductions, and farther low Angola and South Africa. two points in weight.The United States in particular has experienced a backward movement still more severe,which makes this country go Concerning suppliers, aside from the mentioned ones,Taiwan and down from the third to the fourth position as country of destination. Malaysia are listed significantly.

Spanish imports from this area descend more than the general BREAKDOWN OF CAPITAL GOODS FOREIGN TRADE average, and with the corresponding loss of weight, although they BY GEOGRAPHICAL AREA - IMPORTS maintain the third position.The United States as a country, falls to the sixth place being surpassed by Holland. % CHANGE % ON 2009/2008 TOTAL — Latin America EUROPEAN UNION –31.5 69.8 It continues ranking second as client, and the setback of our sales in Asia (Far East) –43.2 16.6 this area is much more moderate that the average. Mexico, Brazil and USA + Canada –37.8 6.0 Chile are countries that appear among the most relevant and, in South East Asia –49.8 0.9 particular, our sales to Chile have grown with extraordinary force. Our Middle East 16.3 0.7 imports maintain a modest level, with less marked reductions. EFTA –3.8 2.0 — Asia (the Far East) Rest of Europe –40.2 0.7 It holds the fifth position as client, although with considerable setback Rest of the World –23.8 3.3 in our exports, especially to China, and to a lesser extent, to India. TOTAL WORLD –33.6 100.0

As supplier, the area is the second in importance, although with substantial reduction in the total value of its sales and, especially to BREAKDOWN OF CAPITAL GOODS FOREIGN TRADE China, which is the second country only surpassed by Germany. Japan BY GEOGRAPHICAL AREA - EXPORTS and South Korea maintain outstanding positions. % CHANGE % ON — Northern Africa 2009/2008 TOTAL This is the only area where our exports grow, being Algeria and Egypt EUROPEAN UNION –16.0 56.4 the countries in charge of this increase.They compensate the Latin America –9.7 9.4 reduction experienced by Morocco. Altogether, the area is the fourth USA + Canada –27.7 7.2 with larger weight. Rest of Asia –21.7 7.0 In spite of the setback undergone by our purchases in the zone, they Northern Africa 14.8 7.1 maintain a certain weight, being Morocco placed in a preferred place. Middle East –27.9 4.2 Rest of Europe –15.6 4.8 — Middle East EFTA –24.3 1.1 Our exports fall with intensity, losing this area positions as Rest of the World –10.0 2.9 destination of our sales after the good results of the past year. In the TOTAL WORLD –15.5 100.0 opposite, this is the unique area that increases its sales, although modestly, being Israel the supplier with some weight.

36 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2.THE CAPITAL GOODS INDUSTRY IN SPAIN

OUTSTANDING SUPPLIERS

% CHANGE % ON 2009/2008 TOTAL Germany –36.5% 20.0% China –45.9% 10.8% Italy –33.0% 9.7% France –37.3% 9.2% The Netherlands –23.3% 6.4% United States of America –38.0% 5.5% United Kingdom –32.0% 4.4% Hungary –2.9% 2.9% Portugal –18.7% 2.3% Japan –41.9% 2.0% Belgium –37.3% 1.9% Austria –33.0% 1.9% Sweden –36.7% 1.8% Denmark –15.1% 1.8% South Korea –8.6% 1.8% Czech Republic –9.5% 1.7% Switzerland –3.3% 1.6% Poland –24.3% 1.5%

Moving Floors in a Recycling Plant Morocco –11.0% 1.5% Ireland 1.9% 1.5% Finland –45.2% 1.3% OUTSTANDING CLIENTS Taiwan –41.0% 1.3%

% CHANGE % ON 2009/2008 TOTAL France –15.9% 14.6% Germany –17.0% 10.2% Portugal –2.3% 8.7% United States of America –29.7% 6.6% Italy –10.5% 5.7% United Kingdom –36.8% 3.7% Morocco –12.8% 2.5% Mexico –4.4% 2.4% Algeria 33.7% 2.3% China –29.1% 2.2% Turkey –3.0% 2.2% The Netherlands –18.0% 2.0% Belgium –25.3% 1.9% Poland 5.2% 1.9% Led technology lantern suitable for urban applications Russia –25.0% 1.7% Chile 80.9% 1.6% Brazil –2.9% 1.5% The total Spanish foreign trade of capital goods with the different countries Egypt 17.9% 1.3% is summarized in the final table, according to two large divisions: Metal- mechanical and Electric-Electronic, indicating the volume experienced by India –15.6% 1.2% purchases and sales, increases against the previous year as well as the Sweden –2.2% 1.2% situation of the foreign trade balances.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 37 FOREIGN TRADE, ENGINEERING GOODS - GEOGRAPHIC BREAKDOWN, 2009 (Values in thousand Euros) MEHANICAL EQUIPMENT ELECTRICAL AND ELECTRONIC EQUIPMENT TOTAL CAPITAL GOODS REGIONS & COUNTRIES SALES PURCHASES BALANCE SALES PURCHASES BALANCE SALES PURCHASES BALANCE Value % 09/08 Value % 09/08 Value Value % 09/08 Value % 09/08 Value Value % 09/08 Value % 09/08 Value EUROPEAN UNION Germany 1,374,013 -26.4% 4,193,596 -34.1% -2,819,583 1,048,162 -0.5% 2,685,708 -39.8% -1,637,546 2,422,175 -17.0% 6,879,303 -36.5% -4,457,128 Austria 99,527 -36.5% 486,702 -19.7% -387,175 40,704 -27.3% 165,763 -54.9% -125,059 140,231 -34.1% 652,465 -33.0% -512,234 Belgium 303,610 -29.4% 362,193 -48.0% -58,583 152,417 -15.6% 290,719 -15.6% -138,302 456,027 -25.3% 652,912 -37.3% -196,885 Bulgaria 37,915 -17.7% 16,610 -46.2% 21,305 76,360 460.8% 40,089 122.2% 36,271 114,276 91.5% 56,700 16.0% 57,576 Cyprus 11,824 -56.0% 395 -33.4% 11,429 52,429 231.3% 733 -97.1% 51,696 64,253 50.4% 1,128 -95.6% 63,125 Denmark 74,760 -29.5% 135,963 -26.0% -61,203 117,023 10.2% 491,193 -11.6% -374,170 191,783 -9.6% 627,156 -15.1% -435,373 Slovakia 25,328 -43.1% 50,656 8.8% -25,328 43,205 -43.1% 92,855 -48.0% -49,650 68,532 -43.1% 143,511 -36.2% -74,979 Slovenia 65,991 -37.8% 15,554 -31.9% 50,437 13,479 -9.8% 11,650 -31.0% 1,829 79,470 -34.3% 27,205 -31.5% 52,265 Estonia 5,055 -29.3% 2,333 -46.2% 2,722 4,653 -45.7% 625 -77.3% 4,028 9,708 -38.3% 2,958 -58.3% 6,750 Finland 84,340 -31.1% 133,574 -37.7% -49,234 20,196 -0.5% 325,672 -47.7% -305,476 104,536 -26.8% 459,246 -45.2% -354,710 France 2,202,465 -23.8% 1,907,932 -42.4% 294,533 1,257,818 2.7% 1,253,695 -27.5% 4,123 3,460,282 -15.9% 3,161,626 -37.3% 298,656 Greece 88,594 -39.3% 31,201 -39.4% 57,393 68,246 33.8% 8,803 -32.9% 59,443 156,840 -20.4% 40,005 -38.1% 116,835 Hungary 61,453 -7.1% 372,411 -11.6% -310,958 63,120 -21.5% 608,871 3.5% -545,751 124,574 -15.0% 981,281 -2.9% -856,707 Ireland 54,720 -21.0% 212,503 276.9% -157,783 21,749 -25.2% 290,388 -33.6% -268,639 76,468 -22.3% 502,891 1.9% -426,423 Italy 691,439 -25.5% 2,430,421 -34.7% -1,738,982 658,438 13.4% 907,837 -28.0% -249,399 1,349,876 -10.5% 3,338,257 -33.0% -1,988,381 Letonia 6,997 -42.7% 935 -15.5% 6,062 1,892 -50.1% 592 -22.8% 1,300 8,889 -44.4% 1,527 -18.5% 7,362 Lituania 7,287 -72.7% 654 -45.5% 6,633 12,341 -46.5% 10,640 -23.9% 1,701 19,628 -60.6% 11,295 -25.6% 8,333 Luxemburg 9,646 -11.8% 21,434 -44.2% -11,788 5,451 15.8% 67,214 5.1% -61,763 15,097 -3.5% 88,647 -13.4% -73,550 Malta 5,487 -30.8% 268 -46.3% 5,219 3,432 -18.4% 3,010 -64.9% 422 8,919 -26.5% 3,278 -63.9% 5,641 The Netherlands 232,221 -37.2% 535,026 -35.3% -302,805 232,430 18.1% 1,649,268 -18.4% -1,416,838 464,650 -18.0% 2,184,294 -23.3% -1,719,644 Poland 246,539 -22.1% 344,380 -38.8% -97,841 198,353 86.9% 182,215 36.7% 16,138 444,892 5.2% 526,595 -24.3% -81,703 Portugal 1,188,391 -8.7% 465,333 -16.6% 723,058 878,917 7.8% 337,766 -21.3% 541,151 2,067,308 -2.3% 803,099 -18.7% 1,264,209 United Kingdom 612,676 -36.8% 801,775 -39.9% -189,099 256,124 -36.8% 702,551 -20.0% -446,427 868,800 -36.8% 1,504,325 -32.0% -635,525 Czech Republic 71,589 -35.3% 221,652 -3.0% -150,063 88,802 12.0% 365,258 -13.1% -276,456 160,391 -15.6% 586,909 -9.5% -426,518 Romania 139,342 -41.1% 23,092 -30.7% 116,250 45,735 -28.9% 86,483 34.1% -40,748 185,077 -38.5% 109,575 12.0% 75,502 Sweden 203,740 22.3% 299,123 -40.8% -95,383 69,189 -38.4% 330,056 -32.5% -260,867 272,930 -2.2% 629,179 -36.7% -356,249 TOTAL European Union 7,905,492 -25.0% 13,065,716 -34.1% -5,160,224 5,430,728 1.9% 10,909,653 -28.0% -5,478,925 13,336,220 -16.0% 23,975,369 -31.5% -10,639,149 REST OF THE WORLD Iceland 1,634 -27.2% 423 2.3% 1,211 819 -38.2% 99 -5.4% 720 2,453 -31.3% 522 0.8% 1,931 Norway 49,488 -57.4% 62,566 -24.2% -13,078 40,977 -27.9% 72,740 19.6% -31,763 90,465 -47.7% 135,306 -5.6% -44,841 Switzerland 125,153 2.4% 342,296 2.1% -217,143 39,806 -5.6% 193,400 -11.7% -153,594 164,959 0.4% 535,695 -3.3% -370,736 TOTAL E.F.T.A. 176,373 -26.7% 409,641 -3.3% -233,268 81,761 -18.6% 267,367 -4.7% -185,606 258,133 -24.3% 677,009 -3.8% -418,876 Albania 1,196 -39.9% 27 -94.8% 1,169 4,748 670.8% 11 -83.3% 4,737 5,944 128.3% 38 -93.5% 5,906 Belarus 10,528 22.9% 1,152 160.1% 9,376 4,234 -17.6% 217 -27.3% 4,017 14,762 7.7% 1,369 84.6% 13,393 Bosnia-Herzegovina 4,570 0.0% 2,998 13.6% 1,572 813 10.7% 59 -59.8% 754 5,383 1.5% 3,056 9.7% 2,327 Croatia 13,909 -52.8% 6,001 -36.2% 7,908 5,708 -32.9% 494 -80.0% 5,214 19,617 -48.4% 6,495 -45.3% 13,122 Georgia 936 -33.4% 58 51.3% 878 707 -25.6% 9 -96.4% 698 1,643 -30.3% 67 -77.5% 1,576 Moldavia 1,135 -51.3% 0 * 1,135 5,008 107.2% 43 * 4,965 6,143 29.4% 43 -88.1% 6,100 Russia 334,380 -18.5% 2,287 -37.0% 332,093 57,514 -48.7% 4,369 -71.3% 53,145 391,894 -25.0% 6,656 -64.7% 385,238 Serbia 17,523 12.7% 4,582 28.0% 12,941 2,576 -33.9% 756 -66.7% 1,820 20,099 3.4% 5,338 -8.8% 14,761 Ukraine 38,161 -40.0% 4,554 -55.5% 33,607 5,071 -8.1% 7,719 -20.6% -2,648 43,232 -37.5% 12,273 -38.5% 30,959 TOTAL Central and Eastern Europe 428,374 -20.6% 22,020 -31.3% 406,354 87,664 -37.6% 13,837 -54.6% 73,827 516,038 -24.1% 35,858 -42.7% 480,180 Andorra 28,072 -21.9% 1,469 -67.4% 26,603 56,947 -9.9% 737 -76.6% 56,210 85,019 -14.2% 2,206 -71.2% 82,813 Gibraltar 15,013 -11.5% 331 -99.0% 14,682 5,639 -15.0% 58 -78.1% 5,581 20,652 -12.5% 389 -98.9% 20,263 Turkey 406,932 -1.7% 163,027 -35.7% 243,905 102,543 -8.0% 44,402 -11.8% 58,141 509,474 -3.0% 207,429 -31.8% 302,045 TOTAL Rest of Europe 450,175 -3.6% 166,940 -43.7% 283,235 165,201 -9.7% 45,395 -16.8% 119,806 615,376 -5.3% 212,335 -39.5% 403,041 Algeria 400,603 35.4% 357 -81.0% 400,246 135,797 28.8% 2,006 * 133,791 536,399 33.7% 2,363 18.3% 534,036 Egypt 207,420 58.3% 8,593 355.0% 198,827 88,363 -26.3% 4,090 -28.5% 84,273 295,783 17.9% 12,683 66.7% 283,100 Libya 44,824 102.6% 3,021 * 41,803 12,762 4.1% 7 1.8% 12,755 57,586 67.5% 3,027 * 54,559 Morocco 399,992 -0.6% 6,564 -20.2% 393,428 182,566 -31.2% 503,029 -10.8% -320,463 582,558 -12.8% 509,593 -11.0% 72,965 Mauritania 7,649 25.5% 47 -19.9% 7,602 3,772 -51.1% 15 -10.7% 3,757 11,421 -17.3% 62 -17.9% 11,359 Sudan 3,612 -26.7% 0 * 3,612 3,507 82.0% 0 -82.8% 3,507 7,119 3.9% 0 -90.7% 7,119 Tunisia 104,927 84.8% 12,768 -16.5% 92,159 81,454 177.0% 37,075 -27.7% 44,379 186,382 116.3% 49,843 -25.1% 136,539 TOTAL North Africa 1,169,027 27.2% 31,349 14.5% 1,137,678 508,221 -6.3% 546,222 -12.1% -38,001 1,677,248 14.8% 577,572 -11.0% 1,099,676 Angola 129,706 -2.9% 38 -94.3% 129,668 30,592 -30.1% 36 550.1% 30,556 160,298 -9.6% 74 -89.0% 160,224 Benin 1,955 32.5% 100 0.0% 1,855 472 -36.3% 0 0.0% 472 2,428 9.5% 100 0.0% 2,328 Botswana 36,448 * 11 -97.9% 36,437 26 * 28 0.0% -2 36,474 * 39 -92.5% 36,435 Burkina Faso 1,799 322.5% 335 * 1,464 2,629 -34.3% 34 784.3% 2,595 4,428 0.0% 369 * 4,059 Burundi 259 10.1% 0 0.0% 259 1,036 153.6% 0 0.0% 1,036 1,295 101.2% 0 0.0% 1,295 Cape Verde 5,635 -50.7% 37 61.6% 5,598 1,008 -55.9% 111 -77.3% 897 6,643 -51.5% 149 -71.0% 6,494 Cameroon 4,220 -0.8% 0 -98.6% 4,220 3,240 -13.7% 5 -71.5% 3,235 7,460 -6.8% 5 -73.5% 7,455 Congo (Democratic Republic) 3,575 75.5% 0 0.0% 3,575 689 162.7% 3 64.7% 686 4,263 85.4% 3 64.7% 4,260 Congo (Republic) 7,065 -16.4% 1 328.3% 7,064 2,056 28.0% 2 -68.5% 2,054 9,121 -9.3% 3 -60.2% 9,118 Costa de Marfil 7,795 1.1% 40 -2.4% 7,755 2,491 6.9% 0 -69.2% 2,491 10,286 2.5% 41 -4.9% 10,245 Djibuti 848 235.5% 1 0.0% 847 994 -4.2% 0 * 994 1,841 42.8% 1 -95.4% 1,840 Ethiopia 4,784 -16.2% 0 * 4,784 1,862 2.4% 127 * 1,735 6,647 -11.7% 127 934.1% 6,520 Gabon 3,534 -13.4% 0 0.0% 3,534 4,901 132.1% 4 -89.6% 4,897 8,434 36.3% 4 -89.6% 8,430 Ghana 10,939 -11.7% 277 334.1% 10,662 2,267 13.6% 30 25.4% 2,237 13,206 -8.2% 307 249.9% 12,899 Guinea 5,347 178.6% 6 -72.0% 5,341 1,218 75.3% 11 -91.2% 1,207 6,565 151.1% 17 -88.5% 6,548 Equatorial Guinea 31,441 38.1% 76 -39.3% 31,365 16,060 51.9% 1 -93.4% 16,059 47,501 42.4% 77 -43.0% 47,424 Guinea-Bissau 1,247 1627.3% 0 0.0% 1,247 37 -79.4% 0 0.0% 37 1,284 412.3% 0 0.0% 1,284 Kenia 3,150 -42.0% 76 649.6% 3,074 3,407 98.0% 20 31.0% 3,387 6,556 -8.3% 96 281.3% 6,460 Liberia 1,696 -24.5% 35 -4.0% 1,661 243 74.9% 3 -54.3% 240 1,939 -18.7% 38 -11.7% 1,901 Madagascar 1,954 97.1% 3 -86.3% 1,951 818 -66.5% 50 62.8% 768 2,771 -19.3% 54 -3.9% 2,717 Mali 2,133 377.8% 23 -89.7% 2,110 1,307 -36.8% 20 -19.8% 1,287 3,440 36.8% 43 -82.9% 3,397 Mauritius 1,674 -1.4% 15 -15.3% 1,659 1,828 36.9% 3 -75.0% 1,825 3,503 15.4% 18 -37.2% 3,485 Mozambique 3,972 -11.6% 10 -67.4% 3,962 4,053 -49.3% 9 54.2% 4,044 8,025 -35.7% 19 -47.3% 8,006 Namibia 1,327 19.4% 62 107.7% 1,265 649 341.7% 17 466.0% 632 1,976 57.0% 79 139.9% 1,897 Niger 960 397.5% 0 -99.2% 960 124 -80.6% 94 222.9% 30 1,083 30.7% 95 45.1% 988 Nigeria 23,907 -21.0% 17 42.9% 23,890 12,846 -38.7% 6 -54.8% 12,840 36,753 -28.3% 23 -8.6% 36,730 South Africa 87,129 -6.6% 141,823 -54.2% -54,694 27,550 -18.2% 20,972 314.8% 6,578 114,679 -9.7% 162,794 -48.2% -48,115 Senegal 11,587 -31.2% 62 -66.3% 11,525 5,624 2.4% 14 -9.6% 5,610 17,211 -23.0% 76 -61.9% 17,135 Seychelles 1,345 60.3% 33 -63.3% 1,312 1,150 760.1% 206 * 944 2,495 156.6% 238 145.2% 2,257 Sierra Leona 328 44.2% 9 -76.0% 319 247 -70.2% 1,115 -34.4% -868 576 -45.5% 1,125 -35.4% -549 Tanzania 2,392 -13.0% 4 0.0% 2,388 1,014 -35.0% 16 584.6% 998 3,406 -21.0% 19 742.9% 3,387 Togo 1,712 77.4% 262 -0.6% 1,450 231 -55.5% 0 * 231 1,943 30.8% 262 -3.5% 1,681 Uganda 3,375 810.7% 1,827 * 1,548 419 12.7% 95 74.1% 324 3,794 410.9% 1,921 * 1,873 Zambia 1,031 61.6% 4 -20.0% 1,027 708 233.4% 0 0.0% 708 1,740 104.5% 4 -18.5% 1,736 TOTAL Rest of Africa 408,892 5.6% 145,197 -53.5% 263,695 134,605 -15.3% 23,049 170.3% 111,556 543,497 -0.5% 168,246 -47.5% 375,251 Canada 129,343 18.1% 142,437 -15.8% -13,094 18,786 -44.0% 39,422 -64.1% -20,636 148,129 3.5% 181,859 -34.8% -33,730 United States of America 1,137,653 -12.0% 863,227 -51.8% 274,426 422,542 -54.4% 1,021,259 -18.3% -598,717 1,560,195 -29.7% 1,884,486 -38.0% -324,291 TOTAL USA & Canada 1,267,001 -9.6% 1,005,664 -48.7% 261,337 441,330 -54.1% 1,060,713 -22.0% -619,383 1,708,331 -27.7% 2,066,377 -37.8% -358,046 Argentina 152,183 3.4% 8,470 -45.7% 143,713 38,725 -13.4% 5,381 -37.0% 33,344 190,908 -0.5% 13,851 -42.6% 177,057 Aruba 792 182.9% 28 * 764 135 -70.8% 1 0.0% 134 927 24.8% 28 * 899 Bahamas 2,199 -48.2% 19 324.0% 2,180 261 -20.1% 5 -28.8% 256 2,460 -46.2% 24 113.6% 2,436 Belize 4,462 0.4% 2 -90.2% 4,460 24 7.3% 11 0.0% 13 4,486 0.4% 13 -19.4% 4,473 Bolivia 9,893 13.6% 151 729.1% 9,742 1,956 -4.5% 22 -70.3% 1,934 11,849 10.2% 172 88.5% 11,677 Brazil 278,857 -2.4% 109,084 9.8% 169,773 66,565 -5.0% 15,904 -51.9% 50,661 345,422 -2.9% 124,988 -5.6% 220,434 Chile 262,619 114.5% 4,384 13.5% 258,235 105,775 30.1% 1,675 70.4% 104,100 368,394 80.9% 6,059 25.1% 362,335 Colombia 69,967 -37.2% 1,078 -95.5% 68,889 16,095 -5.3% 1,984 -46.7% 14,111 86,062 -33.0% 3,061 -88.9% 83,001 Costa Rica 11,242 -8.9% 137 -1.5% 11,105 7,370 -24.6% 714 -75.8% 6,656 18,611 -15.8% 851 -72.4% 17,760 Cuba 119,385 -38.7% 117 -54.0% 119,268 50,242 -42.3% 126 -75.0% 50,116 169,626 -39.8% 244 -68.0% 169,382 Ecuador 19,185 -11.0% 855 -73.4% 18,330 9,173 1.0% 38 -51.2% 9,135 28,358 -7.5% 893 -72.9% 27,465 El Salvador 3,964 -13.9% 22 10.7% 3,942 1,787 -56.3% 145 59.5% 1,642 5,751 -33.8% 167 50.6% 5,584 Guatemala 11,847 -26.1% 17 -6.7% 11,830 1,916 -31.5% 9 -7.9% 1,907 13,762 -26.9% 25 -7.1% 13,737 Honduras 10,096 -22.1% 3 -83.3% 10,093 1,677 -55.1% 579 * 1,098 11,773 -29.4% 582 776.6% 11,191 Islas Caimán 19,898 * 0 * 19,898 27 -93.0% 0 * 27 19,925 * 0 * 19,925 Islands British virgins 1,005 * 0 210.9% 1,005 0 -94.9% 3 -94.3% -3 1,005 * 3 -93.7% 1,002 Jamaica 6,625 34.9% 2 169.1% 6,623 1,277 -65.6% 11 33.9% 1,266 7,902 -8.4% 14 45.4% 7,888 Mexico 378,476 -4.4% 71,882 -51.7% 306,594 196,191 -4.5% 120,626 -4.4% 75,565 574,667 -4.4% 192,509 -30.0% 382,158 Nicaragua 5,130 -38.2% 230 * 4,900 5,189 -18.8% 6 -98.8% 5,183 10,319 -29.8% 236 -50.3% 10,083 Panama 18,182 -62.8% 216 -92.4% 17,966 7,262 -19.8% 89 -57.0% 7,173 25,443 -56.1% 306 -90.0% 25,137 Paraguay 4,167 8.1% 19 63.7% 4,148 1,060 -26.6% 7 285.0% 1,053 5,227 -1.4% 25 93.6% 5,202 Peru 47,621 -21.6% 711 -33.8% 46,910 22,703 26.2% 727 89.9% 21,976 70,324 -10.7% 1,438 -1.3% 68,886 Dominican Republic 37,118 -70.5% 261 -57.0% 36,857 14,541 -22.3% 11,053 91.4% 3,488 51,659 -64.2% 11,314 77.3% 40,345 Surinam 753 324.9% 453 * 300 83 223.7% 0 0.0% 83 835 312.1% 453 * 382 Trinidad & Tobago 6,626 -43.3% 37 110.0% 6,589 1,873 -46.2% 5 * 1,868 8,499 -44.0% 42 132.1% 8,457 Uruguay 11,728 -15.2% 866 9.8% 10,862 9,339 -44.6% 460 258.0% 8,879 21,067 -31.4% 1,326 44.6% 19,741 Venezuela 104,805 -37.2% 3,734 0.1% 101,071 65,859 7.0% 37 -38.8% 65,822 170,664 -25.3% 3,770 -0.5% 166,894 TOTAL Latin America 1,601,616 -10.5% 202,835 -33.4% 1,398,781 627,632 -7.5% 159,906 -13.0% 467,726 2,229,249 -9.7% 362,741 -25.7% 1,866,508 Saudi Arabia 158,284 -19.9% 2,167 -24.2% 156,117 61,289 -9.4% 470 402.4% 60,819 219,574 -17.2% 2,637 -10.7% 216,937 Bahrain 6,383 19.0% 983 22.6% 5,400 2,742 -64.9% 5 -88.9% 2,737 9,125 -30.7% 989 16.2% 8,136 U. Arab Emirates 136,688 -43.9% 7,258 -61.1% 129,430 76,819 -9.7% 6,731 -4.0% 70,088 213,507 -35.0% 13,989 -45.5% 199,518 Iran 164,583 -0.7% 1,021 -60.2% 163,562 37,205 -11.7% 88 -78.7% 37,117 201,787 -2.9% 1,109 -62.8% 200,678 Iraq 9,724 510.9% 0 0.0% 9,724 3,944 30.0% 0 * 3,944 13,668 195.5% 0 * 13,668 Israel 46,993 -67.3% 106,024 35.8% -59,031 28,835 6.7% 116,686 22.7% -87,851 75,828 -55.6% 222,711 28.6% -146,883 Jordan 17,668 11.8% 779 369.7% 16,889 5,256 -15.0% 70 -1.5% 5,186 22,924 4.3% 849 258.8% 22,075 Kuwait 28,052 -52.7% 9 -98.9% 28,043 6,923 -50.3% 6 -71.7% 6,917 34,975 -52.2% 15 -98.2% 34,960 Lebanon 15,514 21.9% 167 -28.0% 15,347 9,969 18.6% 1,306 -59.8% 8,663 25,483 20.6% 1,473 -57.7% 24,010 Oman 9,371 -49.8% 79 620.8% 9,292 4,833 -53.1% 799 478.2% 4,034 14,204 -50.9% 879 488.7% 13,325 Qatar 84,867 -26.6% 456 142.1% 84,411 28,401 -57.3% 37 -79.2% 28,364 113,268 -37.8% 493 35.0% 112,775 Syria 24,351 -12.1% 4 -92.0% 24,347 16,530 -4.8% 8 -16.5% 16,522 40,881 -9.3% 12 -80.9% 40,869 Yemen 2,562 -65.1% 0 * 2,562 1,902 8.8% 0 0.0% 1,902 4,464 -50.8% 0 *% 4,464 TOTAL Near East 705,040 -30.5% 118,949 13.9% 586,091 284,648 -20.3% 126,206 18.7% 158,442 989,688 -27.9% 245,154 16.3% 744,534 Afganistan 1,492 314.3% 3 657.4% 1,489 1,284 13.5% 1 -97.6% 1,283 2,777 86.1% 3 -88.1% 2,774 Armenia 268 -73.9% 0 * 268 993 43.8% 1 -88.5% 992 1,262 -26.6% 1 -88.9% 1,261 Azerbaijan 3,754 -52.3% 0 -99.0% 3,754 1,175 48.5% 0 * 1,175 4,930 -43.1% 0 -99.0% 4,930 Bangladesh 7,862 -17.3% 11 -86.4% 7,851 4,071 -51.9% 1 -90.2% 4,070 11,933 -33.6% 12 -86.8% 11,921 China 383,010 -26.9% 877,188 -32.4% -494,178 140,228 -34.5% 2,822,130 -49.1% -2,681,902 523,237 -29.1% 3,699,317 -45.9% -3,176,080 South Korea 64,177 -13.2% 136,870 -33.6% -72,693 35,651 -50.3% 469,145 2.7% -433,494 99,828 -31.5% 606,015 -8.6% -506,187 Hong-Kong 30,376 22.6% 27,236 2.4% 3,140 42,561 -23.3% 29,703 -71.8% 12,858 72,937 -9.1% 56,940 -56.8% 15,997 India 186,995 -29.3% 90,219 -21.3% 96,776 106,870 27.4% 88,028 -70.1% 18,842 293,865 -15.6% 178,247 -56.4% 115,618 Japan 55,171 -31.2% 380,464 -40.9% -325,293 74,668 -39.8% 320,872 -43.0% -246,204 129,839 -36.4% 701,336 -41.9% -571,497 Kazakhstan 9,856 -68.5% 322 47.7% 9,534 21,030 214.7% 59 121.6% 20,971 30,885 -18.6% 382 55.8% 30,503 Pakistan 24,145 7.4% 47 -79.7% 24,098 2,852 -5.6% 1,081 -13.7% 1,771 26,998 5.9% 1,128 -24.0% 25,870 Sri Lanka 1,673 -78.9% 115 -69.5% 1,558 393 -54.7% 535 -31.5% -142 2,066 -76.5% 650 -43.9% 1,416 Taiwan 24,486 20.7% 79,392 -41.0% -54,906 70,330 213.0% 372,630 -41.0% -302,300 94,815 121.7% 452,022 -41.0% -357,207 Turkmenistan 8,237 58.3% 0 0.0% 8,237 1,762 1721.9% 0 0.0% 1,762 9,999 88.6% 0 0.0% 9,999 Uzbekistan 4,415 174.1% 0 0.0% 4,415 244 -41.0% 0 0.0% 244 4,659 130.2% 0 0.0% 4,659 TOTAL Rest of Asia 806,660 -25.0% 1,593,337 -34.3% -786,677 505,206 -15.9% 4,104,468 -46.0% -3,599,262 1,311,865 -21.7% 5,697,805 -43.2% -4,385,940 The Philippines 14,620 118.3% 3,143 12.2% 11,477 8,309 14.3% 19,494 -75.5% -11,185 22,929 64.1% 22,637 -72.5% 292 Indonesia 56,546 9.4% 4,337 15.1% 52,209 14,190 -19.3% 18,630 -22.6% -4,440 70,736 2.1% 22,967 -17.5% 47,769 Malaysia 23,997 -13.7% 13,843 -46.6% 10,154 14,784 -24.6% 79,837 -56.4% -65,053 38,780 -18.2% 93,680 -55.2% -54,900 Myanmar (Burma) 544 -11.6% 0 0.0% 544 552 145.4% 1 0.0% 551 1,095 30.4% 1 0.0% 1,094 Singapore 70,667 -19.4% 28,282 130.1% 42,385 40,644 -18.6% 57,018 -16.4% -16,374 111,311 -19.1% 85,300 6.0% 26,011 Thailand 50,428 -15.4% 31,642 -64.8% 18,786 10,048 -50.1% 33,914 -64.4% -23,866 60,477 -24.2% 65,556 -64.6% -5,079 Vietnam 12,906 -39.5% 1,836 74.7% 11,070 14,811 -6.1% 4,235 14.2% 10,576 27,717 -25.3% 6,071 27.6% 21,646 TOTAL South East Asia 229,861 -11.8% 83,086 -38.8% 146,775 103,600 -21.1% 213,133 -53.1% -109,533 333,461 -14.9% 296,219 -49.8% 37,242 Australia 96,763 2.4% 9,827 -40.5% 86,936 26,016 -70.6% 15,993 -42.4% 10,023 122,779 -32.9% 25,819 -41.7% 96,960 The Marshall Islands 1,445 123.3% 7 -30.0% 1,438 163 154.4% 1 0.0% 162 1,608 126.1% 8 -21.7% 1,600 New Caladonia and Dependencies 1,439 -5.1% 0 * 1,439 941 -9.9% 0 * 941 2,380 -7.0% 0 * 2,380 New Zealand 6,503 -34.8% 3,525 -30.8% 2,978 2,177 -22.5% 1,940 -4.7% 237 8,679 -32.1% 5,465 -23.4% 3,214 Papua New Guinea 461 788.6% 2 0.0% 459 2,018 * 0 * 2,018 2,479 * 2 -74.4% 2,477 French Polynesia 1,294 15.5% 0 * 1,294 359 -80.4% 0 0.0% 359 1,652 -43.9% 0 * 1,652 Vanuatu 2,634 81.5% 569 0.0% 2,065 76 249.0% 0 * 76 2,710 84.0% 569 * 2,141 TOTAL Oceania 111,246 0.8% 13,931 -35.8% 97,315 31,996 -66.2% 17,934 -39.9% 14,062 143,242 -30.1% 31,865 -38.2% 111,377 * Not indicative, as the small volume of trade means that transactions cause large variations. Source: Sercobe & Customs and Special Taxes Department. SCOPE, METHODOLOGY AND SOURCES

Scope Methodology and Sources

Consumer durable goods not intended for industrial use, such as SERCOBE approached this issue through two sources of information: consumer electronics, automobiles, household appliances, etc. are excluded. However, all mechanical, electric and electronic goods with — A survey carried out among all our members, companies and their essential parts are included, as they constitute in the widest associations. possible sense the equipment of the entire industrial activity.This is — Data provided by the Department of Customs and Special Taxes complemented by design or engineering and erection works on aspects referring to foreign trade. In terms of CPA the scope selected by SERCOBE is the following: This difference in source requires therefore paying certain care when — FABRICATED METAL PRODUCTS examining ratios that inter-relate data coming from both sources.

— MECHANICAL MACHINERY AND EQUIPMENT It is necessary to point out that the level of replies is higher for the larger companies than for the small and medium ones.The same — ELECTRIC MACHINERY AND EQUIPMENT applies to the electric and electronic companies.

— TRANSPORT MATERIAL As a consequence of this, the database obtained from the survey must be projected to the whole of the sector, by making the — NON METALLIC MINERAL PRODUCTS appropriate adjustments, bearing in mind the structure of the Spanish capital goods industry according to its different dimensions and specialisations.

The structure of the sector according to size and specialisation has been obtained from data provided by the National Statistics Institute in its “Industrial Census of Spain”and its follow up by the “Industrial Survey”.With this material and from strict application of evolution in partial samples to each size and specialisation, we obtain the structure of the sector in 2008. In this way, the transference from the sample to the whole of the sector is made.

A table is provided establishing a comparison between the structure of the sample and that of the whole Spanish Industry of Capital Goods, as far as the share of different specialisations and sizes is concerned.

The differences among the statistical samples on which this report is based every year, while not being substantial (below 15%), introduce unavoidable discrepancies in some of the values corresponding to the same year.

Comments made in the present report about the evolution of the different variables refer exclusively to the values obtained from the present sample for the years on which data have been requested in the survey of this year.

External protection by type PDC Lightning Arrestor in Photovoltaic facility

40 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 SCOPE, METHODOLOGY AND SOURCES

High speed shuttle trains

Table 21 NUMBER OF COMPANIES IN THE SAMPLE LARGE MEDIUM SMALL TOTAL Mechanical Equipment Manufacturers 8 15 60 83 Electric and Electronic Equipment Manufacturers 4 9 25 38 TOTAL MANUFACTURERS 12 24 85 121 Suppliers by Subcontracting 25 Erection Contractors 5 Engineering Firms 5 TOTAL SAMPLE 16 27 113 156

Table 22 COMPARED STRUCTURE SAMPLE-SECTOR SHARE IN %,WITH REGARD TO TOTAL TURNOVER OF TOTAL EMPLOYMENT CGI SAMPLE CGI SAMPLE Mechanical Equipment Manufacturers 54.0 63.4 55.9 63.8 Small Companies 24.6 7.8 29.3 11.0 Medium Companies 19.2 14.4 17.2 14.0 Large Companies 10.2 41.2 8.0 38.8 Electric and Electronic Equipment Manufacturers 46.0 36.6 44.1 36.2 Small Companies 11.9 2.5 9.1 3.4 Medium Companies 13.4 7.8 13.3 8.1 Large Companies 20.7 26.3 23.1 24.8 Total Capital Goods Industry 100.0 100.0 100.0 100.0 Small Companies 36.5 10.3 38.4 14.3 Medium Companies 32.6 22.2 30.5 22.1 Large Companies 30.9 67.5 31.1 63.6 Share of turnover in current terms. Source: SERCOBE.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 41 SERCOBE NATIONAL ASSOCIATION OF II MANUFACTURERS OF CAPITAL GOODS

The activities, developed by the Association along the year 2009 are described in this second chapter, the same as the objectives to be achieved and the means to be implemented for this purpose.They result from the knowledge on the situation of the Spanish Capital Goods Industry and its prospects, obtained through the analysis detailed in the first part of this publication. SERCOBE intends to adjust its activities and structure to support the needs of the associated companies and those of the persons integrating them, in order to ease their mission of creating wealth, thus contributing to the build-up of employment and to economic and social development. All this is made compatible with an effective protection of the environment. The main lines of action and identification were the following: – Representing the sector and easing its knowledge and image. – Achieving a favourable legal framework. – Promoting and boosting R+D and innovation and the technological platforms as a key factor in competitiveness. – Boosting Quality, Safety Energy Efficiency and Preservation of the Environment. – Permanent training of the persons integrating the company. – Promoting inter-company co-operation, reinforcing the cohesion of the sector. – Boosting the internationalisation of our companies. – Reinforcing ties with the EU and with Entrepreneurial Associations and Federations of other Member States. – Co-operating in the set-up of adequate labour relations. 1. SERCOBE IS

A national, voluntary and non-profit making Professional SERCOBE has integrated itself into ICSCA (Industry Cooperation on Association of Companies, established in 1964. Since its foundation, it Standards & Conformity Assessment).This organisation is integrated has developed its task aimed to empower the Spanish Capital Goods by companies of a primarily global scope and Industrial Associations Industry. covering the needs of small and medium enterprises. It is aimed to increase the trade through the use of standards, increasing the value Membership is open to companies, groups of companies and more of conformity to them. It is intended that the standards add value to specific scope Associations, related to Engineering, Production and the product through their application. Erection of Capital Goods. SERCOBE is a member of the Directing Board of Centro de Ensayos, Any company, without a distinction in size or capital origin, is eligible Innovación y Servicios, CEIS.This organization has as mission for the Association.This is subject to the company being legally supporting the enterprises in improving their technological level and established in Spain, developing some of the activities mentioned the quality of their products and services. above and complying with quality and commercial seriousness requirements specified by the Association. It is present in the Governing Council of AITEMIN,Technological Centre and Association for investigation and industrial development There are 127 Individual Members, 6 Collective Members, and of the natural resources. 3 Special Groups at present representing more than 600 companies directly or indirectly connected to the Association. It is also member of the Directive Committee of Laboratorio Oficial J.M. Madariaga.This entity has its main activity focused on the SERCOBE is integrated into Spanish and European Corporate accomplishment of checks, tests, calibration and audits in relation to Organisations and actively co-operates with them to solve common the equipment for mining safety and explosive atmospheres. problems of the whole Spanish corporate sector.

It is a member of CONFEMETAL (Confederation of Corporate Organisations in the Metal Area), and as such integrated in the Spanish Confederation of Employers Organisations (CEOE).

It is present in the governing bodies of CONFEMETAL, Board of Directors and Executive Committee, and one of its Vice-president positions corresponds to the President of SERCOBE.

It is also represented in the management bodies and working commissions of CEOE, acting as spokesman of the Capital Goods Industry.

Ties with European organisations are made through ORGALIME,an entity grouping national organisations of Metal-mechanical and Electrical-electronic Industries in Europe, of which SERCOBE is a full member.

In turn, ORGALIME collaborates with WEM (West European Metal Trades Employers Organisation) on social-labour relationship issues, and with BUSINESSEUROPE, which groups the EU's industry confederations and those of certain third countries on more general issues as commercial policies and the environment.

SERCOBE is a full member of the Consultative Board of Administration Contracting and of the Advising Council of New precision cooling unit, is the ideal solution to cool server Commerce and Investment, bodies of the Ministries of Economy rooms and data centers and Finance and Industry,Tourism and Commerce respectively. In both organisations SERCOBE fulfils the mission of bringing its experience and knowledge on the reality of the sector. It provides its point of view in transcendent matters such Public Purchases, Classification of State Contractors and problems related to Exports and Internationalisation of the Companies.

44 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 2. STRUCTURE AND ORGANISATION

GOVERNING BODIES

The General Assembly of Members

It is formed by the representatives of each Individual Member or in such a way that all sizes and specializations are adequately Collective Member,and is the highest Governing Body of the Association. represented.

The Board of Directors Within the Board of Directors, the Delegate Committee is set up and Commissions are formed for specific purposes as determined. It is elected by vote in the General Assembly, so that it corresponds in its composition and structure to the General Assembly of Members, The Board of Directors is integrated at present as follows:

PRESIDENT MEMBERS Mr. Javier Loroño SECRETARY Mr. Rafael Barón (*) Mr. Roberto Sterling INGENIERÍA Y TÉCNICAS DE Mr. José Luis Castañeda SOCELEC, S.A. ASOCIACIÓN DE FABRICANTES MONTAJES LOINTEK, S.L. Boniche DE B.E. ELÉCTRICOS - AFBEL General Manager of SERCOBE Mr. Guillermo Collarte VICE-PRESIDENT Mr. Andrés López Morancho ISOLUX INGENIERIA, S.A. Mr. Manuel Gasset (*) ALSTOM TRANSPORTE, S.A. Mr. Enrique Marchessi ABENGOA, S.A. (*) Members of the Mr. Alfredo Berges PACECO ESPAÑA,S.A. Delegate Committee ANFALUM Mr. Mario Oriol Mr. José Acosta PATENTES TALGO, S.L. CENTUNION ESPAÑOLA DE COORDINAC.TÉCNICA Y Mr. José Ramón Vizcaino (*) FINANCIERA RAMÓN VIZCAINO, S.A.

Mr. Salvador Rivas Mr. José Ramón Zornoza COMSPAIN,S.A. RIEGOS AGRÍCOLAS ESPAÑOLES, S.A.-RAESA Mr. Pablo Chacón (*) CAF,S.A. Mr. Manuel Lenza SIEMENS, S.A. Mr. Federico López Félix (*) DESMET BALLESTRA ESPAÑA,S.A. Mr.José Luis Giménez Garcés (*) TAIM-WESER, S.A. Mr. Javier González Canga DURO FELGUERA, S.A. Mr. Manuel Valencia TECNICAS REUNIDAS, S.A. Mr. Francisco Ballesteros EQUIPOS NUCLEARES, S.A Ms. María Dolores García Morato Mr. Ángel Lara (*) TECNOVE, S.A. INAEL ELECTRICAL SYSTEMS, S.A

Commissions of the Board of Directors

DOMESTIC MARKET EXPORTS ECONOMIC CONTROL Chairman: Mr. Ángel Lara Chairman: Mr. Manuel Gasset Chairman: Mr. Federico López Félix INAEL ELECTRICAL SYSTEMS, S.A. ABENGOA, S.A. DESMET BALLESTRA ESPAÑA,S.A.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 45 2. STRUCTURE AND ORGANISATION

MANAGEMENT BODIES OF THE ASSOCIATION

NATIONAL ASSOCIATION OF MANUFACTURERS OF CAPITAL GOODS

C.E.O.E. GENERAL ASSEMBLY

CONFEMETAL BOARD OF DIRECTORS

GENERAL MANAGER J. L. Castañeda INSTITUTIONAL REL. ADMINISTRATIVE J. I. Pradas INTERNAL SERVICES

EXPORT DOMESTIC MARKET DEPARTMENT DEPARTMENT

ORGANISATION CHART OF THE DOMESTIC MARKET DEPARTMENT Updated to June 2010

MANAGEMENT A. Nieto

STANDARDS AND INDUSTRIAL OBSERVATORY TRAINING AND R+D+I AND ENVIRONMENT INDUSTRIAL RELATIONS STATISTICS CERTIFICATION L. C. González A. Hernández A. Nieto E. de Guzmán E. de Guzmán M. Zamorano

ORGANIZATION CHART OF THE EXPORT DEPARTMENT Updated to June 2010

MANAGEMENT PROJECT M. Riudavets MANAGEMENT P. Sanz

SOUTH AMERICA CENTRAL AMERICA EASTERN EUROPE WESTERN EASTERN AFRICA ASIA MEDITERRANEAN A. J. Mencía AND CARIBBEAN AND CIS AFRICA AND MIDDLE EAST Ricardo AREA J. Hernández J. García J. C. Falcón I. Orbe M. Riudavets de Vargas Ph. Ramos

INSPECTION AND PRAGUE ADMINISTRATION Office A. Ortega J. Bryksi

46 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 3. ACTIVITIES OF SERCOBE IN 2009

of the INE (National Statistics Institute).Also the quantity of the imports INDUSTRIAL OBSERVATORY OF THE SECTOR and exports and the countries of origin and destination are analyzed. OF CAPITAL GOODS MANUFACTURERS Other works performed by the remaining components of the Observatory were: Created by the Ministry of Industry,Tourism and Commerce and managed by SERCOBE in order to make available to the companies, – Analysis of the technologies developed in Spain for the innovation and technology entities, associations of entrepreneurs improvement of the competitiveness of the SMEs of the sector of and unions, and other interested parties a forum of permanent capital goods (FEDIT). encounter and analysis of the sector. It covers different approaches – The paradigm of the labour force flexibility in the sector of capital provided by each entity signing the Agreement of establishment of goods, performed by the Federation of Industry of Commisiones the Observatory, which is aimed to enhance the competitiveness of Obreras. the companies and to assure the future of the sector, creation of employment and wealth in a globalised world. – Analysis of the Industry of Renewable Energies:Wind and Solar, performed by the Branch of Metal, Construction and Similar Once the works to be performed by each member during 2009 were Industries of Union General de Trabajadores, MCA-UGT. approved by the Commission for Follow-up of the Observatory, they were implemented. SERCOBE in particular assumed the performance of the following works: REPRESENTING THE SECTOR INSIDE SPAIN – Structural analysis of the Capital Goods Sector. Its purpose is the AND ABROAD, IN DEALING WITH PUBLIC elaboration of an annual study on structural aspects of the sector, AUTHORITIES, INVESTORS, CLIENTS AND and an analysis of its main parameters. Statistic Information is ECONOMIC AND SOCIAL AGENTS systematically collected the same as documents and institutional data. General qualitative and quantitative information is generated as well, both at national and international level. Information This objective forces to SERCOBE to maintain a deep knowledge contained in the Annual Reports on Conjuncture and Evolution of about the reality of the Spanish Industry of Capital Goods, its the Sector performed by SERCOBE is mainly used for its elaboration. problems and potential.To reach this goal a series of surveys, analyses Additionally, data bases of the National Institute of Statistics, and reports are carried out by applying a well-proven methodology. Ministry of Industry,Tourism and Commerce and Orgalime are also They provide fully reliable quantitative and qualitative data, thanks to used, among other sources, establishing its comparison with data the trust placed in the Association by the companies, based on the obtained from the surveys on conjuncture and annual evolution of precise analysis and the confidentiality in data processing. the sector performed by SERCOBE. Reports on the Conjuncture and Evolution of the Sector – Characterization of the sector of capital goods by means of a compared analysis of the invoicing data of products made in Spain • Preview of the Year.This analysis is performed in the month of with the data of import and export of fifty seven industrial branches of September and summarises the impressions of the corporate world the sector.It has been analyzed in detail what products are in the first half and the forecast of final evolution for the year. manufactured in Spain,the quantities produced and their economic value,using the information contained in the Industrial Product Survey • Annual Report. It provides a true radiography of the evolution in the sector and its different specialisations, analysing a more complete number of business variables.This includes productivity, personnel costs, statements of accounts, production, backlog of orders and foreign trade.The examination is performed providing also macroeconomic variables, the evolution of which conditions the progress of the companies.

This report, appearing in the first part of this publication, is carried out over a wide survey on more than 180 corporate groups representing a high percentage of the total sector and is officially presented in the Annual General Meeting.

• Report comparing the sector in different European countries.The Three-Phase UPS most specific economic variables are analysed in a comparative manner

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 47 3. ACTIVITIES OF SERCOBE IN 2009

direct survey among the manufacturers, being the data so obtained of a confidential nature. Global results are given to know to all participating associates and trends and prospects of their evolution are discussed in “ad hoc”meetings.These meetings represent a forum where manufacturers exchange their opinions and comments on the situation of the market. Possible collective actions in defence of the legitimate interests of the sector are also discussed there.

SERCOBE's image

Presenting and consolidating SERCOBE's image forces it to have the ability to gather an audience in front of the media.This means receiving from their side the acknowledgement of the authority, professional endeavour and representative capacity of the voice speaking on behalf of the sector.

• On the occasion of the presentation of the two reports being carried out each year, encounters are organised with the press and other audiovisual media, where opinions on the situation and evolution of our sector are widely exchanged.

Drinking Water Plant in 8 modules to treat 480 m3/h • SERCOBE is present in specialised publications for keeping a correct image on the importance of the sector and its impact on the economic life of the country. from a study of these characteristics.They include production,exports, employment,productivity and exports as a percentage of production. It is also necessary to project this image wherever necessary in accordance with the requirements of the place and the occasion. This annual examination is thus intended to be an instrument for focusing the economic and technological policy towards those • SERCOBE's web site. Links are provided from the web page to the specialisations in the sector with higher expectations of specific services of information and activities under development development and job creation. and being provided to the associates.The performance of a more attractive and dynamic framework is allowing real time dialogue • Monthly progress report of foreign trade for the Sector, open to with the member companies. 46 different sub-sectors, where values reached, monthly and yearly- accumulated trends, cover ratio and balance of the sub-sectors are We have paid special attention to the section of news and examined. Comments are given on foreseen tendencies of our documents.This section intends to make arrive in a fast way the foreign trade in different geo-economic areas. news, information and documents of the present time and interest for the activities and the business of the capital goods Upon request of the companies interested, this follow-up can be manufacturing companies, members of SERCOBE. made detailing each customs statistical item, the same as the countries of origin and destination. The news related to the activities and accomplishments of our companies have preferential attention here. For that reason, we • Price Indices and Escalation Formulas are performed in enable the associates "to upload" their most relevant news in the collaboration with other Associations and based on information web page of the Association. received from a large number of companies, both suppliers and purchasers and also on that coming from national and international The Web site collects complete information on the activities and databases.These Price Indices and Escalation Formulas have a manufacturing lines of the companies,along with graphs depicting the general acceptance, not only within Spain, but also in foreign most significant accomplishments conducted by them This has a very countries that traditionally receive our exports ample diffusion between the main Spanish and foreign investors.

• Market Analysis CO-OPERATING IN SETTING UP A LEGAL All Committees integrated within the Association of Electrical Capital Goods (AFBEL) elaborate sector statistics reporting the situation and FRAMEWORK THUS FOSTERING A COMPETITIVE trends of the relevant markets.These statistics are performed by a BUSINESS ACTIVITY

48 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 3. ACTIVITIES OF SERCOBE IN 2009

Such a goal requires being in permanent contact with the Spanish participation in the main technological Spanish and European Public Administration, that of the EU and economic and social agents, platforms, the national industry of capital goods takes advantage of so that the legal and administrative frame is adjusted to the the capacity of representation of SERCOBE.This results in the corporate requirements. invigoration of ideas with innovating potential.

The Association is attentive to the problems of the sector and puts On a national scale, SERCOBE is present in the following Spanish them forward where pertinent. It provides initiatives and suggestions technological platforms: so that, optimal solutions can be found through open dialogue. In Spain, and for obvious reasons, the Ministries of Foreign Affairs and – MANUFUTURE-E Cooperation, Industry,Tourism and Commerce, Economy and Finance, – Technological Platform for Railways Public Works, Environment and Labour are the most frequent interlocutors, the same as the Counsellor Offices of the different – Iron and steel and metal Industries (Platea) Autonomous Communities. – Industrial Safety (PESI) During 2009 we have continued placing especial importance on the subjects concerning the promotion of research, technological – Energy Efficiency (PTE-EE) development and innovation the same as the exporting activity, – Intelligent Networks (Futured) being these factors basic for the internationalisation of our Sector. – Technological Platform in Integral Logistics (Logistop) SERCOBE keeps manufacturers informed about relevant proposals and defends the interests of the sector. It takes care avoiding new – CO2 requirements that may hurt the manufacturers or damage some technologies with regard to the other ones. – Nuclear fusion

One of the particular activities performed in 2009 in relation to the – Environmental Technologies (Planeta). competitiveness has been the provision of technical assistance, to the member companies requesting that, in relation to the presentation of At EU level,SERCOBE broadcasts the calls of the VII Frame Program.In projects to the call of the Ministry of Industry,Tourism and Commerce order to facilitate the participation for the first time of a part of the for concession of aids to the promotion of the competitiveness in associated companies,CDTI has selected SERCOBE as an organization strategic sectors. Capital goods and Railway equipment were among collaborating in the program of technological bonds at the end of 2009. them.The conditions of the aids materialized in reimbursable credits Focusing the creation of the second generation of Joint Technology to be paid back in fifteen years, without interest and with a grace Initiatives (JTI),which is an instrument of VII the Frame Program to period of five years. Seventeen associate companies got their projects facilitate the participation of industry,the European Commission selected and provided with important aids. approached ORGALIME so that it led the process of transformation of the European Technological Platform MANUFUTURE into a public- BOOSTING A CONTINUED EFFORT IN R+D BY private partnership named “the factory of the future”.SERCOBE has THE COMPANIES, AS A BASIC ELEMENT FOR adhered to this initiative since its launching and it participates as a Founding Partner of the European Factories of the Future Research COMPETITIVENESS Association (EFFRA) created in April 2009.This organization groups the private part of the public-private partnership “the Factory of the Future". The activities of research and technological development constitute one of the pillars of industrial competitiveness.They are a high- priority in the actions of industrial policy.The concentration in the Ministry of Science and Innovation of the policy for R+D programs, including the activities with impact on the enterprises was intended to a simplification in the administrative management.The technological innovation aspects are also a competence of this department in coordination with the autonomous communities, and thus the renewal of the Law of Science effective which dates from 1986 has been considered.

The diffusion of the calls for aids to R+D projects has been supported EOT crane with 2 trolleys for ingot handling, by SERCOBE in a systematic way. Also, by means of an active swl 600/150 t

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 49 3. ACTIVITIES OF SERCOBE IN 2009

The implementation of management systems for R+D+I has been a As far as certification tasks are concerned, active participation in topic claimed by SERCOBE in front of the Ministry of Science and CTC 68 “Certification of R+D+I projects”has been continued Innovation. It is considered critical in order to maintain the levels of assuming the Vice-president position in the Committee.This investment in R+D+I required by global competition to the Spanish committee extends its work to certification of contents, project Industry. It becomes as well a solid base for certification of R+D budget and performance. activities and tax incentives associated thereto. SERCOBE supports the associated companies in the search of public financing ways in This certification is intended to demonstrate to the parties order to ease the systematic performance of R+D+I projects. interested (Administration, internal bodies, clients, etc.) the existence of an R+D+I project in accordance with an UNE standard, the same as transparency in budget items or expenses incurred in PROMOTING QUALITY AND EXCELLENCE the project in order to proper taxing and/or applying financial aids. IN THE COMPANIES,TO FACE THE GLOBAL • Standardisation Technical Committees MARKET – QUALITY STRUCTURE IS SUPPORTED BY THE AEN/CTN 9 “Pressure equipment. Boilers”. Secretary: SERCOBE PILLARS OF STANDARDISATION AND Subcommittees: CERTIFICATION 01 - “Fire-tube and Water-tube Boilers” – SAFETY OF PEOPLE AND FACILITIES MUST BE A 02 - “Burners” PRIMARY GOAL 03 - “Equipment under Pressure Due to Heat Supply”

AEN/CTN 18 “Bearings, Gears and Transmissions” Actions carried out by SERCOBE in these aspects are mainly Chairman: SERCOBE channelled through its participation in National, European, and Secretary: SERCOBE International specialised organisations, and can be summarised as follows: AEN/CTN 22 “Mining” • Participation in AENOR Subcommittee 03 -“Mining Machinery and Equipment” Chairman: SERCOBE – SERCOBE is member of the Permanent Committee, Directing Board, Consultative and Representative Commission on Electrical- AEN/CTN 61 “Refractory Material” electronic Engineering and AENOR Internacional. Secretary: SERCOBE

– Our Association acts as Secretary, President, or Participating AEN/CTN 62 “Capital Goods for Chemical Industry” Member in the following Standardisation (CTN), and Certification Subcommittee 02 -“Fluid Handling Machinery” (CTC) Technical Committees, either directly or through Secretary: SERCOBE Subcommittees (SC) or Working Groups (GT) as mentioned below: AEN/CTN 72 “Lighting and colour” The presence of the Association in these Committees fulfils the Secretary: ANFALUM (Association Member of SERCOBE) role of co-ordinating the activities of preparation and wording of Standards. Standards are essential in the present European AEN/CTN 73 “Nuclear Industry” context. Free circulation of products and the accomplishment of Member: SERCOBE Directives are based on the existence of such Standards.Their fulfilment shows a presumed accordance with Essential Safety AEN/CTN 77 “Environment” Requirements. Subcommittee 01 -“Water” Effort devoted to standardisation issues has been especially Secretary: SERCOBE relevant during the year 2009, at the sight of the large number of standards issued, and their acceptance by the companies, as it has AEN/CTN 115 “Machinery for Construction, Civil Works and Building” been possible to verify with AENOR.The presence of companies in Secretary: SERCOBE the Committees reinforces even more the application of standardisation as a useful tool in their activity.This activity is AEN/CTN 132 “Painting and Surface Treating Installations and expected to be continued, increasing both the number of Equipment” Committees and the participation of the companies. Secretary: SERCOBE

50 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 3. ACTIVITIES OF SERCOBE IN 2009

(14) and Motors (2).It holds the Secretary of the latter, the same as that of the GT aimed to implement a UNE standard for steel truss and thin plate supports in power distribution overhead lines.At CENELEC level, it assumes as well the Secretary of CLC-TC 81 X/WG5 in charge of elaborating a European Standard on storm detection systems.

Standards resulting of the works performed in the Standardisation Technical Committees mentioned above are always gathered in the web page of the Association. Edimburgh Tram

• Certification Technical Committees (CTC) AEN/CTN 149 “Water Engineering” Member: SERCOBE Referring to the activity of certification, the increase in the number of marks and certifications granted is relevant. AEN/CTN 150 “Environmental Management” Member: SERCOBE The work of Secretary in the Certification Committees has been especially intense, as the award of certifications of Conformity to AEN/CTN 166 “R+D+I Management” Standards and the AENOR mark have been confirmed as a Member: SERCOBE distinguishing element by the market.

AEN/CTN 203 “Electrical equipment and Automation Systems for AEN/CTC 004 “Copper piping for thermal-hydro-sewage use” Industry”. Secretary: SERCOBE Secretary: SERCOBE Working Groups AEN/CTC 007 “Lighting fixtures, lamps and Associated Equipment” 02 - “Rotary Machinery” Secretary: ANFALUM 09 - “Electric Traction Equipment” AEN/CTC 019 “Lamp posts and Lighting Columns” 21 - “Accumulators (batteries and secondary cells)” Secretary: ANFALUM 22 - “Power electronics” 26 - “Electrical Arc Welding” AEN/CTC 024 “Medium and High Voltage Switchgear” 27 - “Industrial Electrical Heating”(Non operational) Secretary: AFBEL 33 - “Power Capacitors” 35 - “Batteries” AEN/CTC 027 “Electric Transformers” 44 - “Safety in Machinery. Electro-technical aspects” Secretary: AFBEL 61F - “Safety in portable motor powered tools” AEN/CTC 028 “Electric Power Cubicles” 65 - “Measurement and control of Industrial Processes” Secretary: AFBEL 79 - “Alarm Systems” 91 - “Top-side Erection Technology” AEN/CTC 058 “Lightning Arresters” 93-217 - “Electronic Design Automation”(EDA) /Computer Assisted Secretary: AFBEL Design” 214 - “Equipment for Electrical Ground Transportation Systems: AEN/CTC 068 “Certification of R+D+I projects” Electro-technical aspects”. Vice-Presidency: SERCOBE

AEN/CTC 072 “Supports for overhead electric lines” AEN/CTN 205 ”Lamps and associated equipment” Secretary: AFBEL Secretary: ANFALUM (Association Member of SERCOBE) Working groups: A - “Lamps” • Participation in European and International Organisations B - “Lamp sockets and caps” C - “Auxiliary elements for gas discharge tubes” We collaborate in the International Standardisation Organisations D - “Lighting fixtures” ISO and CEI, the same as in the European ones CEN, CENELEC, ELSECOM and LVE-AC, where experts of the member firms also participate. The Association of Manufacturers of Electrical Capital Goods (AFBEL) participates in the WG of Standardisation of Lines (07/11),Transformers

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 51 3. ACTIVITIES OF SERCOBE IN 2009

The participation during this year has been maintained through the – Boosting the Industry of Environmental Capital Goods and Services. Spanish Committees of these organisations, in which an active Eco-industry. presence has been assumed in representing the interests of our professional sector. – Design and execution of training programs.

• The activity of market monitoring and control has become • Diffusion and Training actions essential for strengthening loyal competition.This means detecting Work has been continued to keep informing about the set of and reporting the presence of products violating legislation.We Directives and other legal dispositions affecting the companies have continued working in close collaboration with the MITC and and regulating the environment-company relationship, as well as the Autonomous Communities to boost and direct this monitoring. those affecting the free circulation of products.This activity This provides a support to companies certifying the quality of their requires a special effort to provide all companies with details products and the suitability of the control of their production enabling them the correct interpretation of the legal texts, and processes. facilitating the adoption of measures necessary for their accomplishment. PAYING SPECIAL ATTENTION TO THE CONSERVATION OF THE ENVIRONMENT HELPING THE PERMANENT TRAINING AND ENERGY EFFICIENCY OF HUMAN RESOURCES,THE MAIN ASSET OF A COMPANY,AND HELPING TO ESTABLISH Environmental actions are at present one of the most important LABOUR RELATIONS BASED ON AGREEMENTS investments to be made by the clients of the capital goods industry. Independently of this essential aspect, we cannot ignore that the environmental industry, the eco-industry, is wholly integrated in the These activities consolidate year after year. SERCOBE is conscious of scope of the Association.This industry forms a group of the great importance of training activities for an industrial sector as manufacturers of environmental facilities and equipment, and capital goods.This sector is forced by the impact of new technologies providers of services especially scoped to the environment. to a permanent updating of personnel at all levels. SERCOBE pays very special attention to these activities, which in 2009 • Within the Program Contract of the Metal Branch Foundation for centred on: Training, Qualification and Employment corresponding to 2009, 29 – Diffusion of the possibilities of our companies. Training Actions took place.This represented a total of 1,565 teaching hours, participating 517 workers. – Promotion of investment aimed to the correction of environmental impact and setting up energy efficiency in the industry. The selection of the different Training Actions, their time scheduling and the selection of places for training were – Increasing awareness regarding environmental problems. determined by a survey, in which the companies indicated their real needs.Thus, matters to be taught corresponded to the requirements of the labour market.

Relevant attention will be paid to the most critical collective groups, such as employees older than 45 years and non-skilled workers.

Furthermore, a continuous advice and supportive management action was provided to the relevant departments of the companies.

MAKING CLOSER TIES WITH EUROPEAN INSTITUTIONS AND WITH CORPORATE ASSOCIATIONS AND FEDERATIONS OF OTHER MEMBER STATES

During 2009 SERCOBE has tried to achieve this objective by focusing Stainless steel beacon. High efficiency lighting technology its activity on the following aspects:

52 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 3. ACTIVITIES OF SERCOBE IN 2009

• ORGALIME (Liaison Group of the European Mechanical, regarding essential subjects, such as the open market, competition, Electrical, Electronic and Metalworking Industries - Órgano de standardisation and certification, application of directives on free Unión de las Industrias Metal-Mecánicas, Eléctricas y circulation and mutual recognition, etc. Electrónicas Europeas - Organisme de Liaison des Industries Métal-Mécaniques, Électriques et Électroniques Européennes). EASING THE APPROACH TO INVESTING ORGALIME is, without a doubt, one of the main dealing parties with SECTORS IN ORDER TO ACHIEVEADEQUACY OF the European Commission, and the Commission always takes into OFFER AND DEMAND IN CAPITAL GOODS consideration its point of view. Consequently SERCOBE pays preferential attention to its relations with it and is a full member of this organisation. The participation of SERCOBE as a sector association within CONFEMETAL facilitates contacts with the sectors demanding capital We act as a member in the Committees on Electrical-electronic goods. A particular case is the equipment which is incorporated to Industry, Mechanical Industry,Technical Harmonisation,“ad hoc” the provision of infrastructures: its financing is tied to the budgets of Group on Public Markets,Working Group on Commercial Policies, the public sector. Contacts are held by SERCOBE with the main Working Group on R+D and Economists Committee. employer's associations in the sectors of construction, and electrical, chemical, cement and iron and steel industries. Our presence in the management bodies of ORGALIME enables us to transfer viewpoints of the Spanish companies to be incorporated SERCOBE, through its Department of Exports, as it is widely known, to the positions taken by the European industry of our sector facing acts in two clearly diversified environments. the Commission. In addition, we also actively participate in the preparation of reports and studies on the present situation of the sector, its development, needs, and the effects of the application of COMMITMENT TO BOOST FIRMLY Directives. THE INTERNATIONALISATION • Community Aid Management. OF THE COMPANIES

Our actions are aimed to make the corporate world closer to the set of aids set up by the EU.These aids are mainly centred on the On one hand, it assumes Institutional Fostering to Exports, and on the promotion of research, co-operation of the companies, aid to other hand, Direct Commercial Promotion. development programmes and cohesion funds. In the first one, SERCOBE takes care of creating an image in the A permanent information service is maintained on all those foreign market. At the same time, it collaborates with our programs or invitations of different agencies of the Commission Administration, with which it is in continuous contact, for that may be of interest for our companies. improving the general frame for the promotion of exports. Further, • Collaboration with Associations in Member States it provides useful information to the companies on different markets abroad. We have continued a relationship of close collaboration with the European Associations equivalent to SERCOBE as AGORIA (Belgium), In the second one, SERCOBE works to generate specific FIE and FIMTM (France), ANIE and ANIMA (Italy),VDMA and ZVEI opportunities to be translated into export transactions for its (Germany), FME (Holland),TBL (Norway), EIA (Ireland), BEAMA (Great member companies. Britain), FEEI (Austria), FIMET (Finland), Sveriges Verkstadsindustrier Within this line of boosting the internationalization of the sector (Sweden), etc. companies, advantage should be taken of the capacities offered by Exchange of information on common problems, business co- the global markets in relation to the export and the import of goods operation and sector analysis provide an interesting knowledge and services. In this connection, the works have been carried out with which we have brought to our companies by proper documents the support of the CIMCEX Platform.The contents of this platform can and notices. be analysed in our web page.

• Relations with European Sector Federations

SERCOBE has been present in these entities, which group, at European level, the national Associations of the sector.These bodies play a more significant role every day in the European Commission

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 53 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

President Zuma approved the national plan of renewable energies, with subsidized tariffs to solar, wind, hydroelectric and gas generation.

In Namibia, the first tender process for the desalinating plant of the Central Coast was interrupted.This was a reference project in Sub- Sahara Africa, for being the plant projected with a larger capacity with regard to the consumption needs. A new prequalification was called again in June, to which a company of SERCOBE applied and was preselected. It is estimated that the phase of tender and award of this important project shall take place during the year 2010. Significant advances were obtained in the execution of the contract for the project of expansion of three airports, although the commissioning of the works of the Walvis Bay airport is experiencing considerable delays.

The Government of Lesotho sent to the Secretariat of State of Commerce its proposal for the project of rural electrification with photovoltaic solar panels, with the aim of securing the final approval of the Spanish financing. It is foreseen that the tender and award WESTERN AFRICA process for this project will take place during the year 2010, by means South Africa began the year with elections in April (presidential and of a call for international bidding. provincial) that had as more relevant note the change of Government In Equatorial Guinea, there were presidential elections in November, in the Province of Western Cape, the capital of which is Cape Town. and present President Teodoro Obiang obtained a victory again, For the first time since the fall of the Apartheid in 1994, ANC grazing 100% of the scrutinized votes. SERCOBE has signed a (acronym in English of the African National Congress) lost the consultancy contract to perform the feasibility study for the Government in one of the provinces.The new policy of containment construction of a petroleum refinery in Mbini. Several proposals have of expenses, as much on the part of the Central Government as of the been also submitted for the modernization of the fishing sector, Provincial Government of Western Cape has made some projects in beginning by consulting for the performance of a study on the which we have worked, like the one of the traffic control centre in present situation and a proposal of works for the period 2010 - 2012. Cape Town, to be postponed. Also, the contacts have been continued with large enterprise groups for working in strategic sectors in the Actions have been undertaken in Ivory Coast with the Government country, like water, both for drinking purposes as for waste water and with the largest private operator of railways for the improvement reusability in agricultural uses, but these projects will begin to of the railway line linking Ivory Coast with Burkina Faso, as well as for prosper after the holding, in June and July of 2010, of the World- the renewal of locomotives and passenger cars. Ivory Coast, along Championship of Football Association.The new Government of with Cameroun, Ghana and Senegal, have been the 4 countries

Bucket wheel reclaimer for phosphate, capacity 1,000 t/h, Morocco

54 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

qualified as eligible for receiving funds from Spain, for several infrastructure projects within the Infrastructure line of FAD designed by the Africa Plan.

In Kenya, a financial protocol with Spain was signed in the month of July, after several years of negotiation.The local Government has reached already a more stable internal situation than that prevailing immediately after the presidential elections. It has foreseen investing a good part of the funds in renewable energies.The issue of a tender for the first package is scheduled for the beginning of 2010. It will consist in the installation of a Wind Generation facility at about 30 km from the capital, Nairobi.

In the Republic of Angola, all the equipment of both contracts signed with the Province of Huambo has been provided.The provision of training for the Angolan technicians who will use the equipment remains as the only pending matter. The last shipment of the Contract signed between SERCOBE and the EAST AFRICA AND THE MIDDLE EAST Government of the province of Benguela for the provision of cooling containers and trucks has taken place.They will be devoted to the In Jordan, the execution of the contract for the design, supply and distribution of frozen fish in the villages of the mentioned province. In construction of an electrical substation of 400 kV in Amman East and this contract, only the start-up and training of the Angolan its expansion, has finalized within the term scheduled and at full technicians that will use the equipment is pending, scheduled for satisfaction of the client.The first photovoltaic solar energy project on April 2010. industrial scale in the country has been promoted by the Ministry of Energy and Mineral Resources with Spanish concessional financing. Several proposals have been submitted for the supply of equipment Another project has been developed for the design, provision and and machinery for street and highway repair, and for preparation of installation of a remote control system of in the northern provinces of new agricultural lands; equipment for the basic sewage of cities and Jordan, funded by means of concessional financing of the Spanish municipalities; ambulances and buses for public transportation and Government.The origin of this project is in a previous consulting vehicles for the collection of municipal solid wastes in the city of study also promoted by SERCOBE.The prequalification of an Luanda. associated company has been obtained for a project of potable water network management in the town of Karak, financed with German A Contract with the Government of the Province of Kuanza Sul has funds. An investment proposal has been submitted for improving the been signed scoping the provision of equipment for basic sewage generation efficiency of a combined cycle electrical plant. A proposal and equipment for drilling artesian wells, but regretfully the drop in has been coordinated with Spanish concessional financing for an the price of petroleum has stopped it. important railway transportation project, although the Jordanian In Cape Verde, the execution of the first stage of the contract for Government decided to issue finally the project to international marine traffic control and rescue (VTMS) for Instituto Maritimo tendering. A prequalification file of an associate company has been Portuario, is being normally developed and its conclusion is foreseen submitted for the Jordanian version of the project for canalization, within the year 2010, advancing also significantly in the desalination and hydroelectric generation associated to a duct from administrative procedure for putting in force the second stage. It has the Red Sea to the Dead Sea.The prequalification of an associated been finally approved the call for tenders corresponding to a company has been obtained for the wind generation project of Fujeij, rehabilitation and improvement project of all the system of possibly the first wind generation facility to be installed in Jordan, by lighthouses and marine beaconing of the country. An associated means of a private concession scheme. company has signed a new contract with the national company of In Palestine, after many years of political difficulties that have directly airports (ASA) for the provision of fire-fighting equipment and affected the possibilities of developing projects, advances have been vehicles. Its effectiveness is expected to take place within the year obtained in the last months that allow venturing the next call of an 2010. A contract has been awarded to an associated company for the electrification project in which we have been very involved in the design and construction of a plant for processing and preserving fish past. and perishable products in the island of San Vicente. In the United Arab Emirates, after difficulties in the signature of the contract that have delayed all the process, it has been finally possible

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to boost the project of technical assistance for the design and construction of a laboratory devoted to testing photovoltaic concentration panels.This will allow to the Spanish suppliers to test their products in a zone of as peculiar climatologic characteristics as the Gulf.There is at the same time an important potential of growth by the decided bet of some of the governments of the zone, in particular Abu Dhabi, for the development of renewable energies.The project, with Spanish-Emirati co-financing promoted by SERCOBE, represents an important landmark in bilateral technological cooperation in the field of renewable energies.

In Oman, the Spanish participation has been promoted in a project for the design and provision of equipment for a tourist train in one of the most emblematic caves of the sultanate, Al Hoota, within the frame of an international tender. Although the contract was initially pre awarded, the Central Office of Tenders imposed finally its criterion to summon a contest, which we hope will be favourably solved throughout 2010. Different opportunities have been studied in the sectors of environment (collection and treatment of municipal waste and dangerous materials), water (urban waste water treatment plants Bioethanol Plant, France and plants and sea water desalination plants) and railway transportation, although the proposals have not yet been submitted.

In Saudi Arabia, actions have been performed to prequalify the associated companies for some of the tenders of SWCC (SALINE WATER CONVERSION CORPORATION) for the design and construction of water desalination plants. Little by little, the institutions of some of the Gulf countries with competence in the production of fresh water begin to accept the technology of Reverse Osmosis in which the Spanish companies are world-wide referred. Concerning Saudi companies with activity in the world of petroleum, gas and petrochemicals, Sabic and ARAMCO in particular, we have made proposals of structured financing for the purchase of equipment necessary in order to develop their new production plants, while we have continued introducing associated companies as manufacturers Algiers Subway of this equipment.We have also advanced in the establishment of Spanish engineering and construction companies for large industrial projects, offshore platforms in particular. the Achilles' heels of the Iranian economy, and therefore, one of the sectors where with greater probability a hardening of the In Iran, in spite of the increase of the political stress, the execution of international restrictions will occur. In 2009, important contracts have contracts for the provision of Spanish equipment devoted to the new been signed in the petrochemical sector and they have not been able petrochemical plants of the NPC, NATIONAL PETROCHEMICAL to be put in force for these reasons, although we hope to find COMPANY,continues advancing normally.The penetration of the solutions shortly. Spanish industry thanks to the availability of lines of credit in this important market has significantly advanced. Iranian needs that can In Mozambique, the rural solar electrification project, financed by the be satisfied by the Spanish industry of capital goods are enormous Spanish Administration, for the Ministry of Natural Resources and and especially relevant in a generalized environment of demand Energy, is practically commissioned, and its conclusion is foreseen for contraction, and very markedly in Spain.We trust that the the first quarter of 2010.The contract for the expansion of a project international context of Iran will be more favourable to work in the for provision of measurement equipment to the national weather country in 2010 and we shall be able to continue maintaining our centre, INAM, has not yet significantly advanced due to administrative presence in the market. Besides contracts in execution, there are matters. Opportunities have been analyzed in the field of electrical numerous opportunities in other sectors like railway transportation, generation by means of thermal coal fuelled power plants. water or gas, without mentioning, of course, crude oil refining, one of

56 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

competition on the part of companies already installed in the country. Although in the end of the evaluation process, the proposal promoted by SERCOBE obtained the best technical and economic score, the client chose to declare the tender process null and to call it again in 2010. Facing this situation and as a result of the numerous commercial actions performed in the country, the associated company created a local subsidiary which allowed it to capitalize the experience acquired directly offering the supply of equipment to the Procurement Division of SONEDE, with the support of SERCOBE. When the tender for the large Brackish Water Desalination Facilities will be called again, the associated company will have a better knowledge of the client and the country.

A proposal for the management of the works has been also submitted. It corresponds to the first section of lines D and E of the RFR, Réseau Ferroviaire Rapide de Tunis (a neighbourhood railway for the suburban area of the Tunisian capital).This tender is in phase of technical evaluation. Another proposal has been submitted as well as for the construction of the Saïda Mannoubia tunnel of RFR, Réseau MEDITERRANEAN COUNTRIES Ferroviaire Rapide de Tunis. For this same project, the set up of a consortium formed by five associated companies has been promoted The year 2009 has been the first one of full operation of the South for offering the systems of signalling, track electrification, provision Mediterranean countries zone, after the incorporation in September and positioning of tracks and maintenance workshop of the branches of 2008 of a new person in charge of that.The results obtained during of the first section of lines D and E of the RFR, Réseau Ferroviaire a year in which the financial and economic crisis has also punished Rapide de Tunis. this region, come to confirm the hopes deposited by SERCOBE in the large potential that the South Mediterranean has for our associated A proposal has been submitted to Compagnie des Phosphates de companies. It has been possible to participate, with a high support on Gafsa for the proposal of fire-fighting vehicles.The proposal of our the part of SERCOBE to its associated companies, in the emblematic associated company was second in the final evaluation (first projects of Libya,Tunisia and Morocco; the first contracts for the technically and second economically), prevailing the lowest bid for provision of capital goods in Libya have been signed and executed; the awarding committee. markets for the associated SMEs have been open identifying A technical proposal has been submitted to ONAS, public opportunities and supporting the submission of proposals by these company of sewage, for a industrial waste water treatment, which companies throughout the year 2009 in Algeria,Tunisia and Libya. will be one of the largest in the Maghreb. It is a turnkey project In Tunisia, we have developed during the year 2009 an important with financing option.This tender is in phase of technical commercial and promotional work with the Tunisian public sector, evaluation. positioning our associated companies in the sectors with more In the electrical sector, a technical proposal has been submitted for a perspective of opportunities: environment, industry of phosphates, turnkey project scoping the installation of 3MW solar photovoltaic energy and railway transport. power generation in roofs connected to the Low Voltage Distribution SERCOBE's activity has been exclusively focused in projects of public Network for STEG, state company of electricity and gas.The proposal organizations to avoid non-payment problems enough usual in the of our company is in phase of technical evaluation. private sector, and in this environment international public tenders In Libya, SERCOBE has developed its work of promotion and are extremely long, surpassing sometimes one year of duration, identification of commercial opportunities in the main state which of some form explains the lack of tangible results, in spite of organizations of the country.The first contracts with the Libyan the good perspective. Ministry of the Interior have been obtained and our associated The following files stand out: proposal to SONEDE, public company of companies have been positioned in projects of Defence, Oil & Gas, water management and distribution, for the first phase of a brackish Railway Transportation and sea water Desalination, mainly. water desalination project in the south of the country. SERCOBE has Both contracts with a public company dependent of the Ministry of been supporting during eleven months (until November of 2009) the the Interior awarded to SERCOBE in name and representation of an extremely hard process that faced our associated company to the associated company have consisted in the supply of vehicles for

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special transports. Also, proposals have been submitted for the We have also supported the participation of several associated supply of vehicles to the Army, as well as for 4,200 W photovoltaic companies in different projects of sea water desalination by means of facilities to provide electrical supply to dependencies of the Army. reverse osmosis. This tender is in phase of technical evaluation. Finally, a technical visit to Spain has been organized for the Also, proposals for the provision of emergency equipment have been negotiation of a contract for the supply of an electromechanical submitted, including 500 prefabricated modular houses, 500 repair workshop for large motors between 300 and 500 kW. chemical toilets, 10,000 drinking water-treatment plants, 10 electric generating sets, 200 movable lighting towers, 10,000 f water tanks, 12 In Egypt, a contract awarded to an associated company became mobile field kitchens, 50,000 emergency rations, etc. for the Ministry effective in 2009 for the supply of hospital material.This contract was of the Interior. included within the frame of projects financed by means of the bilateral protocol with this country. In the sector of railway transportation, a technical prequalification file has been submitted for the provision of transport means for the In Algeria, presidential elections were held on the 9th of April, making Libyan Railways: line locomotives, shunting locomotives, cars, our work difficult during the electoral campaign and in the months wagons, rescue vehicles and repair and maintenance workshops. immediately after the entrance of the new government.President Abdelaziz Bouteflika obtained his third mandate, marked by social On the other hand, we have worked from SERCOBE in projects for stress, scandals of corruption and by the non-accomplishment of his expansion or construction of new refineries: with NOC, National Oil electoral program.We have supported the submission of a proposal for Company of Libya, in two projects of expansion; with LERCO, Libyan the construction (building and facilities) of the corporate head office of Emirates Refinery Company, in the expansion and improvement of a the airline company Air Algérie.It consists in a premium building of refinery with ZORCO, Zwara Oil Refining Company, in a fourth refinery 60,000 m2 near the airport of Algiers. financed with funds of LAP,Libyan African Portfolio. In Morocco, we have identified several opportunities to be developed during the year 2010.This was relevant in the railway sector, dominated to date by French companies, where our support to our companies throughout 2009 has allowed us to sponsor the future presentation, in the month of March of 2010, on the part of four associated companies, of a technical and economical proposal with Spanish financing, for the design and turnkey performance of a maintenance workshop of high speed trains in the station of Tangiers Moghogha to Moroccan national railway company, ONCF.

In Turkey, we have collaborated in 2009 with Banco Sabadell Atlantico in order to hold in the offices of SERCOBE a Day of Business Opportunities in Turkey that has counted with the participation of the Agency for Support and Promotion of Investment of Turkey.

Gas Distributor for Turbine by-pass. Cogeneration Plant, EDP,Portugal ISCC solar thermal power plant in Ain Beni Mathar, Morocco

58 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

EASTERN EUROPE AND CIS

The year 2009 has been especially difficult in the Eastern European Steam generators intermediate assembly (AREVA design) for countries, with a noticeable incidence of the consequences of the Ringhals nuclear power plant in Sweden world-wide economic crisis.The level of investment, as much public as private, fell substantially, being the industrial sector one of the most affected. Among the most pressing problems the lack of In Moscow, the most important companies of services working for financing for investment projects has been critical.This has affected the state railway company of Russia (RZD) are based. For one of these both the projects that were in phase of build-up, and the projects companies, a proposal was submitted consisting of a wagon washing that had been already started and have had to be postponed. line, with equipment for wagons of special dimensions, and with external and internal washing.The proposal was accepted by the In Russia, a Frame Agreement was subscribed with the Administration client. At the moment, the project is in the hands of the engineers of of Kemerovo for supporting the project of the Thermoelectric Power the Russian company in order to suggest changes that may improve station of Kemerovo.Bids were submitted for the Feasibility Studies of the advantages of the equipment, considering the weather the project and works have been developed in the award of a coal conditions of the region where the line will be located. mine for feeding the Power station and determining its location. Also, in Moscow, several proposals of equipment were submitted for In the Region of Moscow, a proposal of industrial cooling equipment medical material and equipment to an important company supplier for a storage and distribution plant of fruits and vegetables has been of the National Health System. Equipment and materials of different submitted.The Spanish proposal has been very highly valued, and the manufacturers were presented and several visits of the Russian project was approved.The cut of Administration expenses in the industrialists to the Spanish manufacturers and vice versa took place. Region of Moscow has brought about the temporary suspension of The Spanish equipment and materials are quite competitive in the the project that is expected to be retaken in the middle of this year. Russian market regarding both price and quality. Nevertheless, the difficulties for Spanish manufacturers that the process of certification In Omsk, a proposal of hot-dip galvanizing line for pieces of large of the equipment and materials in Russia represents constitute a dimensions in a metallurgical complex was submitted.The proposal serious barrier for the introduction of these products in the country. includes the engineering study and the integral supply of equipment. It was accepted by the client and we are working at present in We have performed in this year, a Reverse Mission with implementing the project financing. representatives of the Administration of 8 cities of Russia, in collaboration with Commercial Office of Spain in Moscow, in order to In Yakutsk, we have submitted a proposal of equipment supply for a study the Spanish experience in the sector of Municipal Solid Wastes plant of pre-stressed of concrete production.The proposal won a treatment. Several manufacturers of equipment for this sector were tender against bids of several countries.The project has been visited, the same as the most advanced plants of the country. During suspended by the strong crisis that the sector of construction the visit, special incidence was made in the systems of waste undergoes in this region of Siberia.

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pneumatic collection.This visit has generated a request of proposal for this type of systems on the part of the Municipality of Sochi, and a request of proposal of equipment for a MSW treatment plant in the city of Novosibirsk.

In the region of Kuzbass, the largest coal basin of country is located. Works are being developed with an important company of the mining sector, in the submission of proposals for different types of equipment.

In the region of Kaliningrad, proposals of equipment have been submitted for bird-raising and pig farms. Also, works are being made in the elaboration of a proposal for an animal feeder manufacturing plant.

In the Ukraine,a proposal of equipment has been submitted for a manufacturing plant of ceramic mosaics.Several visits of the Ukrainian promoter to Spain were performed and also of the manufacturer to the Ukraine.The proposal is in phase of analysis by the Ukrainian engineers. In the region of Crimea, works have been carried out in the ASIA-PACIFIC preparation of a proposal of equipment for a plant producing chemicals for water treatment. Several visits of the promoter to the In China, we continued observing that the business opportunities for Spanish manufacturers have been performed and works are in course the Spanish companies (independently of financial protocols and for the definition of the proposal jointly with an engineering special supports of the administration) are focused on direct company specialized in this sector. investment and/or long term cooperation with local companies.

In Belarus, a proposal of machine tools has been submitted for a In India, the power and water sectors continue concentrating a large metallurgical complex. part of SERCOBE activities. India continues evidencing the growth of its industry and its population making the problems of access to the In the Czech Republic, works have been prosecuted in the provision water and deficit in the power production reach critical levels in the of parts of inner decoration and features of street cars in the city of midterm. Prague. In the segment of water treatment for human use, the national and state plans for the management and distribution of resources, in spite of the outer support, continue being of difficult implementation and in the best case, this implementation is very slow.

SERCOBE, during this year has facilitated the participation of an associated company in the tender for an important desalination plant for drinking water supply and promoted the prequalification in different tenders for water treatment and purification in the states of Tamil Nadu, Andhra Pradesh and West Bengal, where proposals will be submitted throughout 2010.

With respect to the water treatment for industrial use SERCOBE has lead the registry and prequalification of associated companies in projects related to water packages (catchment, pumping, effluents, demineralization and treatment) for thermal coal fed power plants in the states of West Bengal and Uttar Pradesh.

The rising power demand in India supposes a very important increase as much in the number of projects approved as in that of projects in implementation (public and private-IPP´s) for power 765 kV High Voltage Line Sipta-Seoni, India generation by means of thermal power plants fed with coal.The

60 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

participation of SERCOBE in these projects has lead to the identification of opportunities in the BOP package of said power stations. In order to approach this issue during 2010 we have established alliances with local partner and associated companies.

In the sector of transport infrastructures SERCOBE has identified different projects of interest in the state of Tamil Nadu, concentrating its efforts in facilitating a possible Spanish participation in the electrification of the Chennai Metro.

The financial crisis and the general elections have remarkably influenced in the generalized delay of both public (Central or State Government) and private tenders.

In Vietnam, the IV Bilateral Financial Protocol agreed in February 2008 continues without being ratified.

Under this prism, SERCOBE has continued promoting the participation of its associates in projects, with local or multilateral financing, in different sectors (water, transport infrastructures, energy).

Within the institutional framework, SERCOBE participated in a delegation of enterprises to Vietnam organized by CEOE during the month of November.

In Thailand, the political instability, in spite of the permanence of the present government in the power during this year, continues slowing down the action of the different public administrations. 245 and 123 kV Current Transformers in a direct current In the sector of renewable energies, where SERCOBE identified two interconnection.Three Gorges Power Station, China projects with private financing, presenting Spanish equipment, the projects have been finally awarded to Chinese suppliers.The proposal, besides being cheaper in price, had associated an possible participation of Spanish companies.The projects of important component of private financing. desalination (12,000 m3/d and 2,500 m3/d) launched by PWA remain in a stand-by situation for lack of budget. In the sector of transport infrastructures we have followed the project Bus Rapid Transit (BRT) promoted by the Metropolitan Authority of In Indonesia, SERCOBE continues the prospection in the sectors of Bangkok (BMA) and maintained numerous meetings with all the air transport infrastructures, renewable energies and water.The organisations responsible for its implementation, including the local difficulty to define a closed list of eligible projects for the company in charge of the coordination of the project. Presentations application of the remaining amount corresponding to the present of the alternative and technical-commercial solutions of the Spanish financial protocol has continued during this year.The situation has company were carried out with the purpose of fostering its lead to not publishing new tenders under the umbrella of this participation in the project.The scope implies the design of a protocol. technical-commercial solution, the supply of control equipment and a period of operation and maintenance. At public and private level as for the sector of renewable energies, we continued appreciating the absence of a general plan that facilitates Problems arising during the previous phases of this project make the feasibility for their gradual implementation. very difficult to be able to carry out a real evaluation on the possibilities of success of the Spanish proposal although it has In the sector airport infrastructure, we have given pursuit to a project resulted of a great interest for the client. for the adaptation of airports to the OACI standards. After the opportune contacts were carried out, we continued observing In the water sector we have identified a canalization project (150 km) difficulty in the Directorate General of Civil Aviation (Directorate of and water distribution (it requires previous feasibility study) being its Air Safety) in obtaining suitable financing. promoter the Royal Irrigation Authority.We are evaluating the

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In the State of Jalisco, contact has been made with an investing group that wishes to install a plant for the production of inulins and agave honey.

In the State of Nayarit, we have contacted in the North zone with the company Integradora de Frutas y Hortalizas.This company intends to develop a project of regional scope, that includes the Municipalities of Tecuala, Acaponeta and Huajicori, consisting of the installation of sorting and packing plants of fruits and vegetables devoted to the export market. Jointly with the client, we have initiated the study of the project that is going to allow to us defining the scope of the technical-economic proposal of the facility.

In the Federal District, the Walmart Company of Mexico has foreseen to develop an ambitious expansion plan within this country, where it is the largest company of retail sale. It contemplates the construction of three large cooled stores. All the documentation required by this client has been submitted in order to be able to participate in its investment projects, having obtained the prequalification of our CENTRAL AMERICA AND CARIBBEAN companies.We are expecting the call of bids to participate in this In Mexico, we have continued maintaining the strategy of leaning in process. the Secretariats of Economic Development of the different States, In this same district, we are negotiating with a client a sausage participating in the projects that count on the financial aid of these manufacturing plant, with a capacity of production of 12.000 kg/8 Governments. hours in different products, as much fresh as cured.We are In the State of Sinaloa, we have submitted a proposal for a corn expecting the analysis of our proposal on the part of client, for drying and storage facility, with a capacity of 10,000 t. once its decision is known to be able to initiate the financial proceedings. A proposal of slaughter house has been submitted to the Association of Cattle Breeders, with a slaughtering capacity of 120 heads of In Guatemala, we have identified a project for the update of the cattle/day and 240 pigs/ day.The client is performing the feasibility cadastre of Guatemala city. Contacts have been maintained with the study of the project and we expect that the result of the same is civil servants responsible for this project, with the purpose of defining translated into the signature of a contract. its scope.

In this same State, we are following a project for the development of Since the client requests in the tender to be issued that the bidders a plant for the extraction of concentrate broth of shrimp head.The accompany their bids with a financial proposal, we have negotiated client has sent us samples with which they are conducting tests in with Central American Bank of Economic Integration that this bank Centro Tecnologico de la Conserva of Murcia; in view of their results, acts as guarantor of the Municipality for the financial proposal that the preliminary project of the facility will be prepared. we shall produce with a Spanish bank.

In the State of Querétaro, two projects are being followed with same We have presented proposals to the Ministry of the Defence for client; both contemplate the construction of industrial buildings that movable camps, field hospitals and vehicles for Logistic service. will house the productive processes, being these, a cutting line by In El Salvador, contacts have been held with the Comisión Ejecutiva plasma and the provision of different machine-tools for modelling of Portuaria Autónoma (CEPA),that intends to perform different prototypes in the motor sector.The client has accepted our proposals investments in equipment for the port of La Union, recently finished, and we are expecting the results of the risk analyses of the financial as far as its civil works are concerned. Engineering specifications and organization to subscribe the respective contracts. catalogues have been presented, essentially for container handling In the State of Chihuahua the project of construction of a slaughter equipment, in which the client has shown special interest.We expect house, with a slaughtering capacity of 10 heads of cattle/hour that we to participate in the tenders that it has foreseen to summon in the have offered, has been accepted by the client, who is transacting next year. subsidies existing for this type of investment, both with Government Actions have been undertaken with the new local Authorities of of the State, and with the Federal Government. the Municipality of San Salvador, which have shown interest in

62 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

updating their cadastre, having presented to them different alternatives.They vary in their scope, in order that the client can evaluate the sizing of the project to be executed, based on its financial possibilities.

In Nicaragua, a private University has contacted us, in order that we help them to define the equipment of the laboratories of a new course that they have foreseen to teach, in the specialty of renewable energy. A preliminary project is being prepared in order to present it to the client.

SOUTH AMERICA

In Bolivia, although it is a highly indebted country and the financial possibilities from Spain are practically null, we have followed Central Control centre for Mexico Metro maintaining our presence by different actions directed to qualify the Spanish companies in sectors like hydrocarbons, water purification and photovoltaic solar energy.

In Peru, it has been finally obtained that one of our associates signed in August 2009 a contract of concession for the design, construction and operation during 25 years of the waste water treatment plant of Taboada.This plant, with a flow of 14 m3/s, will treat 75% of the waste waters of the city of Lima. It consists of an advanced pre-treatment plus a submarine marine outfall of 4 km. long.The implementation time is 38 months and it is expected that the works of construction will start in the second half of 2010.

It has also been obtained the award to a Peruvian-Spanish Consortium, in which companies associated to SERCOBE participate, of the construction of the potable water treatment plant of Tomilla II in Arequipa, which has already initiated the works.

We have also detected several projects in this sector of institutional strengthening that adapt very well to the profile of one of our associates and we are promoting that in the definition of the projects some aspects be considered that, on the one hand, improve the quality of the final project and, on the other, when rising the quality, they will require the participation of more qualified companies.

In Petroperú, one of our associates was prequalified along with other 9 companies of maximum international reputation for the tender of management of the works for the revamping and improvement of the Talara refinery, a work evaluated in more than 1,300 Million Dollars. Cryogenic Torch in LNG Regasification Facility, Chile

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 63 INSTITUTIONAL ACTIONS FOSTERING EXPORTS

In energy, we have identified a project for the construction of a we are approaching these new companies to transfer the Spanish hydroelectric power station of 80 MW, tender that began the past technology and products. year and that was awarded to one of our associates, although the construction has not yet begun for lack of financing. However, we In ECOPETROL, we are making a very important effort of expect that this financing shall be made available throughout 2010. prequalification of suppliers facing both large projects of expansion In this sector also, we have submitted a proposal for the and modernization of the refineries of Cartagena and modernization of the control systems of auxiliary services in the Barrancabermeja. Hydroelectric Power station Santiago Antúnez of Mayolo belonging In the sector of logistic facilities, industrial parks and free zones, in full to Electroperú, that finally was not awarded. development in Colombia, we are producing a series of proposals for In Colombia, we have concentrated in the sectors of sewage, the provision of structures for industrial buildings and equipment of hydrocarbons, logistics and energy. the industries there established, supporting them with financial offers of buyer's credit. In sewage, we have identified a series of projects for the construction of waste water treatment plants that we expect will be tendered in In the sector it transportation, we are making a substantial effort of 2010.These projects have not called for bids, since they are closing pursuit for the project of the Suburban Train of Bogota, having their financing, often multilateral. It has been offered to finance, at organised a Reverse Mission with support of ICEX in June of 2009 least partially, the construction of some of these plants and we hoped with Gobernación de Cundinamarca, that is the organization in that this offering has definition throughout 2010. charge of the project. In this sense, we have promoted that a Spanish public company of mass transport by railway be contracted by Besides the large projects of waste water treatment, the Colombian Gobernacion as adviser in the process of definition and structuring of Government has promoted the creation of departmental water the project. companies. In this way, municipalities that did not have neither the resources nor the capacities sufficient to manage these services, are Finally, in energy, we are following different projects for the yielding them to the departmental organization in exchange for construction of hydroelectric power stations and promoting the commitments of quite important investments.This encourages a participation of our associated companies in the tenders called for large stage of investments throughout 2010 and the coming years, so their execution.

Asphalt plant. Production: 260-300 t/h. Casablanca, Morocco

64 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 LIST OF SERCOBE ASSOCIATES as at May, 31, 2010

ABENGOA, S.A. EQUIPOS NUCLEARES, S.A. NÚCLEO DE COMUNICACIONES Y CONTROL, ALKARGO, S. COOP. ESINDUS, S.A. OASA TRANSFORMADORES XXI, S.A.L. ALSTOM ESTAMPACIONES MODERNAS, S.L. OMROM ELECTRONICS, S.A. ANDALUCIA DE ELECTRICIDAD, S.A. EUROPEA DE CONSTRUCCIONES METALICAS,S.A. ORMAZABAL MEDIA TENSIÓN, S.L.U. ANDRITZ HYDRO, S.L. FABRICACIONES METALICAS MORENO, S.A. OUTOKUMPU COPPER TUBES, S.A. APLICACIONES TECNOLOGICAS, S.A. FAGOR ARRASATE S.COOP. P.SALVADOR ROMERO, S.L. AQUAFRISCH, S.L. FOSTER WHEELER ENERGÍA, S.A. PACECO ESPAÑA,S.A. AREVA T&D IBERICA, S.A. FUNTAM, S.A. PASCH Y CIA., S.A. ARFLU, S.A. GE POWER MANAGEMENT, S.A. PATENTES TALGO, S.L. ASTHOR AGRICOLA, S.A. G.H. ELECTROTERMIA, S.A. PIERALISI ESPAÑA,S.L. AUXEMA STEMMANN ESPAÑOLA,S.A. GICALLA, S.A. POSTEMEL, S.L. BABCOCK POWER ESPAÑA,S.A. GRUPO VALVOSPAIN,S.L. PREMATECNICA,S.A. BABCOCK WANSON ESPAÑA,S.A. HEGAZ RAMON VIZCAINO REFRIGERACION, S.A. BROAD TELECOM, S.A. HEYMO INGENIERIA, S.A. REDONDO Y GARCIA, S.A. (REGASA) CENTUNION ESPAÑOLA DE COORDINACIÓN HITECSA AIRE ACONDICIONADO, S.L.U. REJILLAS ELECTROSOLDADAS, S.A. TÉCNICA Y FINANCIERA, S.A. HONEYWELL, S.A. RIEGOS AGRÍCOLAS ESPAÑOLES,S.A. CHLORIDE ESPAÑA,S.A.U. IBERICA DE APARELLAJES,S.L. RIELLO-ENERDATA CIRPROTEC, S.L. INAEL ELECTRICAL SYSTEMS, S.A. RIGUAL, S.A. COBRA GRUPO INCOESA GESTIÓN, S.A. RINGO VALVULAS, S.L. COMERCIAL DE REPUESTOS INDUSTRIALES, S.A. INDEMESA, S.L. ROS ROCA, S.A. COMSPAIN XXI, S.A. INDUSTRIAL DE TRANSFORMADOS METALICOS,S.A. ROSAL Instalaciones Agroindustriales, S.A. CONSTRUCCIONES ELECTRICAS JARA, S.A. INDUSTRIAS DUERO, S.A. RS ISOLSEC, S.L. CONSTRUCCIONES MECANICAS ASTURIANAS,S.L. INDUSTRIAS JOVIR, S.L. SANIFUTUR, S.A. CONSTRUCCIONES Y AUXILIAR DE SANTOS Maquinaria Eléctrica, S.L. FERROCARRILES, S.A. INDUSTRIAS MECANICAS DE EXTREMADURA,S.A. SCHMIDT CLEMENS SPAIN CONSTRUCTORA DE TRANSFORMADORES DE INDUSTRIAS MECANO-ELÉCTRICAS FONTECHA DISTRIBUCION, S.L.U. YÉBENES, S.L. SCHNEIDER ELECTRIC ESPAÑA,S.A. CONTROL TECHNIQUES IBERIA, S.A. INFOGLOBAL, S.A. SDMO INDUSTRIES IBERICA, S.A. CONTROL Y MONTAJES INDUSTRIALES CYMI,S.A. INGENIERÍA Y DISEÑO EUROPEO, S.A. SECON COMPONENTS, S.L. CORPORACIÓN ALBATROS INGENIERÍA Y SUMINISTROS ASTURIAS, S.A. SIEMENS, S.A. (GRUPO ISASTUR) CUÑADO, S.A. SOCELEC, S.A. INGENIERIA Y TECNICAS DE MONTAJE LOINTEK,S.L. DANFOSS, S.A. SOCOMEC-ARON, S.A. ISOFOTON, S.A. DESMET BALLESTRA ESPAÑA,S.A. STEJASA AGREGADOS INDUSTRIALES, S.A. ISOLUX INGENIERIA, S.A. DIMETRONIC, S.A. TAIM WESER, S.A. ISOWAT MADE, S.L. DINOTEC SOCIEDAD DE AGUAS Y MEDIO TALLERES JESUS ALVAREZ, S.A. AMBIENTE, S.L. ITURRI, S.A. TECNATOM, S.A. DOMINION TECNOLOGIAS, S.L.U. JIMENEZ BELINCHON, S.A. TECNICAS REUNIDAS, S.A. DURO FELGUERA, S.A. KALFRISA, S.A. TECNOVE, S.A. DYTRAS, S.A. LABORATORIO ELECTROTECNICO, S.C.C.L. TELVENT, S.A. ELECNOR, S.A. LAYBOX, S.L. TERMISA ENERGIA, S.A. ELECTRA MOLINS, S.A. LLOYD'S REGISTER ESPAÑA,S.A. TRANSTOOLS, S.A. ELECTRO TALLERES ZARAUZ, S.A. MANUFACTURAS ELECTRICAS, S.A. TSK ELECTRÓNICA Y ELECTRICIDAD, S.A. ELECTROTECNICA ARTECHE HNOS., S.A. MGE UPS SYSTEMS ESPAÑA,S.A. TUBOS REUNIDOS, S.A. EMERSON Network Power, S.A. MIGUEL CARRERA Y CIA., S.A. WASSER, S.A.E. EQUIPAMIENTOS AVANZADOS, S.L. MONTREAL MONTAJES Y REALIZACIONES, S.A. ZIV APLICACIONES Y TECNOLOGÍA, S.L.

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 65 COLLECTIVE MEMBERS ASOCIACION ESPAÑOLA DE FABRICANTES DE ILUMINACION - ANFALUM ASOCIACIÓN DE FABRICANTES DE BIENES DE EQUIPO Spanish Association of Manufacturers of Lighting Equipment ELECTRICOS - AFBEL Presidency: SOCELEC, S.A. Association of Electrical Capital Goods Manufacturers Mr. Rafael Barón Presidency: MANUFACTURAS ELECTRICAS, S.A. Manager: Mr. Alfredo Berges Mr. Roberto Sterling Manager: Mr. Gustavo Eisenberg ASOCIACION ESPAÑOLA DE FABRICANTES DE REMOLQUES, SEMIRREMOLQUES, CISTERNAS Y VEHÍCULOS ANÁLOGOS - ASFARES The Association is organised in specialised committees, listed below, Spanish Association of Manufacturers of Trailers,Semi-trailers,Tanker corresponding to their European counterparts. trucks and Likewise Vehicles Presidency: ROS ROCA INDOS, EQUIPOS DE INGENIERÍA, S.L. - High Voltage Gear Mr. Jaime Maciá Serentill Presidency: Manufacturas Eléctricas, S.A. Manager: Mr. Julio Viartola Mr. Roberto Sterling European Committee:T&D Europe FEDERACION ESPAÑOLA DE ASOCIACIONES DE FABRICANTES DE MAQUINARIA PARA HOSTELERIA - FELAC - Transformers Spanish Federation of Associations of Manufacturers of Machinery for Presidency: Schneider Electric Hotels,and Related Industries Mr. Ramón Farrán Presidency: QUALITY ESPRESSO, S.A. European Committee:T&D Europe Mr. Jordi Roure Boada

- Uninterrupted Power Systems (UPS) Presidency: Socomec Aron, S.A. Mr. Jordi Riera SPECIAL GROUPS WITHIN SERCOBE European Committee: CEMEP Each group is integrated by capital goods manufacturing companies of the specialisations listed below. - Converters Presidency: Danfoss, S.A. GRUPO DE MAQUINARIA PARA OBRAS PUBLICAS Mr. Miguel Cirre Public Works Machinery Group European Committee: CEMEP Specialisations: excavation, compaction, concrete and paving, crushing and classification - Generating Sets Presidency: CORINSA Presidency: Electra Molins, S.A. Mr. José Gil Rivera Mr.Víctor Molins Manager: Mr. Enrique de Guzmán

- Lightning Arresters AGRUPACIÓN DE TRATAMIENTO DE AGUAS Presidency: Aplicaciones Tecnológicas, S.A. Grouping of Water Treatment Ms.Verónica Pomar The group includes companies involved in engineering, manufacturing and erection of water treatment plants for proposal - Steel Towers and make-up, city and industrial wastewater, and sea water Presidency: Mr. José Manuel Moreno Pérez desalination. Secretary General: Mr. Antonio Nieto ASOCIACIÓN DE FABRICANTES DE SISTEMAS DE CONDUCCIÓN DE CABLES Y ELEMENTOS ASOCIADOS - ASICOC GRUPO DE MANUTENCIÓN Association of Manufacturers of Cable Transmission Systems and Group of Handling Equipment Associated Elements Specialisations: Continuous and discontinuous handling and storage Presidency: UNEX APARELLAJE ELÉCTRICO, S.L. facilities and industrial vehicles. Mr. José Más Junyent Presidency:TALLERES JASO, S.A. Mr.Vicente Guerra ASOCIACION ESPAÑOLA DE FABRICANTES DE ESTRUCTURAS Manager: Mr. Enrique Guzmán METALICAS PARA USOS ELECTRICOS - AFEME Spanish Association of Manufacturers of Steel Structures for Electrical Use Presidency: Mr. José Manuel Moreno Manager: Mr. Gustavo Eisenberg

66 SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 PHOTOS INCLUDED: OUR THANKS TO THE COMPANIES PROVIDING GRAPHIC MATERIAL

ABENER (ABENGOA) INDUSTRIAS DERIVADAS DEL ALUMINIO (ANFALUM) ALSTOM INFOGLOBAL, S.A. AQUAFRISCH, S.L. ITURRI, S.A. ARELSA (ANFALUM) KALFRISA, S.A. AREVA T&D IBERICA, S.A. MANUFACTURAS ELECTRICAS, S.A. BABCOCK WANSON ESPAÑA,S.A. ORMAZABAL MEDIA TENSIÓN, S.L.U. CHLORIDE ESPAÑA,S.A.U. PACECO ESPAÑA,S.A. CIRPROTEC, S.L. PASCH Y CIA., S.A. COMERCIAL DE REPUESTOS INDUSTRIALES, S.A. PREMATECNICA,S.A. CONSTRUCCIONES Y AUXILIAR DE FERROCARRILES, S.A. RIGUAL, S.A. CONTROL TECHNIQUES IBERIA, S.A. RINGO VALVULAS, S.L. DAISALUX (ANFALUM) SANIFUTUR, S.A. DANFOSS, S.A. SCHMIDT CLEMENS SPAIN DURO FELGUERA, S.A. SCHNEIDER ELECTRIC ESPAÑA,S.A. ELECNOR, S.A. SECON COMPONENTS, S.L. ELECTROTECNICA ARTECHE HNOS., S.A. SOCELEC, S.A. EMERSON Network Power, S.A. STEJASA AGREGADOS INDUSTRIALES, S.A. EQUIPOS NUCLEARES, S.A. TAIM WESER, S.A. FAGOR ARRASATE S.COOP. TECNATOM, S.A. HEYMO INGENIERIA, S.A. TECNICAS REUNIDAS, S.A. INABENSA (ABENGOA) TSK ELECTRÓNICA Y ELECTRICIDAD, S.A. INCOESA GESTIÓN, S.A. TUBOS REUNIDOS, S.A. INDUSTRIAL DE TRANSFORMADOS METALICOS,S.A.

MAMUT system for the inspection of large aerodynamic surfaces made on carbon fibre, for Airbus Spain

SERCOBE / THE SPANISH INDUSTRY OF CAPITAL GOODS 2009 67 NATIONAL ASSOCIATION OF MANUFACTURERS OF CAPITAL GOODS Jorge Juan, 47 • 28001 Madrid (Spain) Tel.: 91 435 72 40 • Fax: 91 577 09 10 [email protected] • www.sercobe.es