Fagor Group is reported to be undergoing extreme difficulty, it registered during the first quarter of the year losses of €8.57 million against the 164,000 Euros of gross profit that it obtained in the same period of 2008.
The accounts sent by the company to the National Commission of the stock market in Spain show a turnover of €724 million, 14% less than a year before, due essentially to the drop in sales on the Spanish market.
However, the Basque based group trusts that these numbers are smoothed during the second period of the year, after already discounting an important part of the backward movement of the construction and of while the market concentrates in the product replacement.
The Mondrag³n Corporation, admits to being exposed to certain financial risks. For this reason, it has initiated a process of refinancing of his debt for the rest of year with the purpose of to fortify the structure of the group in the medium and long term. The debt surpasses €500 million and Fagor hopes to obtain a new loan of €60M.
Thus, within the framework of the strategic plan that it extends until 2012, Fagor Electric home appliances hopes to consolidate the international projection of the company and to lead the sector from a perspective of innovation with a clear commitment with the use of the renewable energies.
To this goal there are 358 people with an investment of 42 million Euros for 2009, of which more than half, 22 million, they are destined to develop new projects.