Nissan to close Barcelona plant, Aluminium downstream suppliers to auto industry stands down-hearted

Gianluca De Ficchy, Chairman, Nissan Europe said: “Nissan intends to close its Barcelona main plant and two nearby facilities starting in December’20, but it will keep open two facilities in northern Spain.”

The Chairman also said: "There was no viable solution for the future of the Barcelona factory.”

On 28^th May’20, hundreds of workers barricaded the plant followed by the Nissan’s announcement that it would close down the factory as part of a global restructuring plan to reduce costs.

The decision came as a blow to Spain at a time when unemployment is spearing and a steep recession is emerging due to COVID-19 pandemic.

As per the labour union, the plant and the nearby facilities employ 3,000 workers and the closures could indirectly affect up to 25,000 jobs.  The car industry accounts for about 10% of Spain's gross domestic product, according to auto industry association ANFAC.

The closure was announced on 28^th May’20 by Nissan CEO Makoto Uchida during a webcast detailing the automaker's new global business plan that includes a reduction of global production capacity by about a fifth to help cut 300 billion yen ($2.8 billion) from fixed costs.

Uchida said: “Nissan will keep open its plant in Sunderland, England.  In western Europe, we will maintain production of our core models in our UK plant in Sunderland and improve efficiency,"

Uchida also said from Japan: “The Company would discuss the situation with the Spanish government.”

The Spanish government said in a statement: “Nissan decided to end its operation in Barcelona despite proposals made by the local authorities to keep the plant running. The closure would cost Nissan as much as 1 billion euros ($1.10 billion), urging the automaker to look at other options.”

While the aluminium downstream suppliers to the auto company remain downhearted, after hearing the announcement, as already the industry is going through rough patches, the worst in the decade.

The Barcelona factory has been operating since the 1980s. It builds pickups and vans.

Nissan plans to relocate production of the Navara pickup to South Africa, while a replacement for the e-NV200 van would be built at Renault's plant in Maubeuge, France.