Spain has lost 17 factories in two decades

Not too long ago, Spain had a powerful household appliance industry: Balay, Corberó, Fagor… Between the 1950s and 1970s, manufacturers proliferated that manufactured refrigerators, washing machines and ovens “made in Spain” that constituted the middle class’s access to the comfort of the modern era.

That era passed away: in the last two decades 17 plants have disappeared (they have closed or relocated) and barely a dozen remain in the entire state, according to APPLIA datathe Spanish Association of Appliance Manufacturers and Importers. Their turnover is 4.5 billion euros per year and they employ 8,000 people, modest figures for a state the size of Spain. They are, literally, low and hanging by a thread.

what’s happening. In a word: relocation. Manufacturing outside the old continent is more profitable than doing so within, where the costs associated with production, regulatory and environmental costs are higher. More specifically, there is a star location: Asia. La Vanguardia collects the statements of Augusto Río, spokesperson for APPLIA and sales director of the German company BSH in Spain: “There are certain regulations in Europe aimed theoretically at improving the European industrial environment, but their application makes it more complicated to manufacture within the EU.”

An example: the Carbon Border Adjustment Mechanism (CBAM) taxes the steel necessary for these appliances, but does not apply to imported appliances that arrive already finished. In other words, if you import a ton of steel from Asia, they charge you the tax. But if you use that same ton of steel in Asia to make an entire washing machine there and bring it to Europe, the washing machine enters without paying that green tax.

Why is it important. The first consequence is direct and obvious: losing jobs. The not so obvious one is to become strategically dependent on third parties for essential domestic goods. Keeping these companies alive and operational supports local economies under a stable and quality employment model. At least, more than the precarious service sector that usually replaces it. From a technological point of view, the R&D&i ecosystem linked to the industrial fabric is broken: without factories, technical knowledge goes outside and feedback on innovation is lost.

Paradoxically, the loss of these industries does not respond to a crisis in consumer demand: according to Renub Researchthe European home appliance market will go from 112.33 billion dollars in 2024 to 147.98 billion in 2033, an annual growth rate of more than 3%. But in this forecast report prepared by Mordor Intelligence We see that the quintet that leads the appliance market is the German BSH, the Swedish Electrolux, the British Dyson, the North American Whirpoool and the Chinese Haier. Precisely another Chinese brand, Midea, was the one that acquired the Teka Group between 2024 and 2025.

Context. Historically, the manufacture of household appliances in Spain was a reflection of economic developmentalism and the adaptation of the “American Way of Life” to mass consumption in the mid-20th century. The families established a relationship that went beyond the purchase: they acquired the devices, but they also manufactured them, generating a strong bond and worker identity. I don’t remember one of my student apartments in Zaragoza where there wasn’t something by Balay. The globalization of the late 20th century and early 21st century put an end to it: multinationals moved their factories to countries with lower labor and environmental costs.

Added to this context of relocation are specific legal asymmetries: Spain requires three years of guarantee of manufacturing compared to the two required by general EU regulations. Likewise, it is mandatory store spare parts for a decadewhich generates inventory costs that in practice the import avoids.

Europe’s (only) great asset. To survive the fierce competition in the Asian market, the strategy of the European industry that is still resisting is to abandon the price war and differentiate itself in quality, as the German Mittelstand serves as an example. That is the plan of the CNA group, owner of the Cata brand and with a factory in Torelló. Santiago Torrent, its executive president, details: “The challenge is not to grow, but to do so with more added value” and that they must focus on quality, innovation, durability and better performance. This also includes after-sales and repairs, two areas in which the European Right to Repair Directive It requires them to have increasing responsibility for the product life cycle.

Yes, but. The problem with this value-added strategy requires time, investment and a market that is willing to pay more for a European product, something that does not have to happen. And even less so in an inflationary scenario like the current one. On the other hand, China has already publicly shown its discontent with the protectionist European tariff measures, responding that he will take “the necessary actions.” And Europe’s dependence on China goes far beyond washing machines: it encompasses semiconductors, batteries and rare earths, structurally limiting how far Brussels can squeeze without harming itself.

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Cover | Homa Appliances and Mati Flo