Chery-Ebro deal to create 1,250 jobs for former Nissan workers

Spanish PM and Catalan president welcome Chinese carmaker Chery to Barcelona at symbolic signing event

Spanish PM Pedro Sánchez, Catalan president Pere Aragonès, and Spanish industry minister Jordi Hereu pictured with former Nissan workers after the signing of the Chery-Ebro deal
Spanish PM Pedro Sánchez, Catalan president Pere Aragonès, and Spanish industry minister Jordi Hereu pictured with former Nissan workers after the signing of the Chery-Ebro deal / Maria Asmarat
Lorcan Doherty

Lorcan Doherty | @catalannews | Barcelona

April 19, 2024 11:52 AM

April 19, 2024 07:03 PM

Up to 1,250 jobs are to be created for former Nissan workers as a result of the deal between Chinese carmaker Chery and Barcelona-based Ebro to begin manufacturing in Catalonia.

Catalan President Pere Aragonès and Spanish Prime Minister Pedro Sánchez welcomed Chery to Barcelona on Friday morning, at an event celebrating the agreement reached with Ebro-EV Motors to produce vehicles in the Catalan capital's Zona Franca.

Some 150,000 vehicles could be produced by the end of the decade.

 

A symbolic signing took place to seal the deal reached in China earlier this week, which will see the Wuhu-based state-owned carmaker and one of Catalonia's most famous vehicle brands collaborate in a joint venture to produce models under both brand names. 

El conseller delegat d'Ebro, Pedro Calef; i el vicepresident de Chery, Zhang Guibing, signen l'acord amb la presència del president Pere Aragonès, el president espanyol, Pedro Sánchez i el ministre d'Indústria, Jordi Hereu
Ebro CEO Pedro Calef and Chery vicepresident Zhang Guibing sign the deal as the Catalan president, Spanish PM and Spain's industry minister applaud / Maria Asmarat

It marks the first time that a Chinese manufacturer will build vehicles in Spain, and is a significant step in the reindustrialization of the old Nissan plant, which closed in 2021 with the direct loss of 1,600 jobs. 

Ebro CEO Pedro Calef highlighted the "total commitment" behind the joint venture between the Catalan and Chinese companies to manufacture in Catalonia, indicating that the assembly of Chery's Omoda 5 model will begin by the end of the summer. 

'Ebro Factory' 

The former Nissan plant will now be known as 'Ebro Factory', comprising two sites, the one in the Zona Franca in Barcelona and one in Montcada i Reixac, dedicated to stamping and welding metal parts.  

The Zona Franca site will be renovated in the coming months with "significant investments" planned, including from public funds

The vice-president of Chery, Zhang Guibing, said that the plant will be "one of the main export bases" for the company on a global scale. "It is strategic cooperation between two countries," he said. 

The forecast is that by the end of this year two SUV models will be produced, one mid-range and one mid-high, in both petrol and electric versions. In 2025, two more models will be produced, and a distribution network will be developed with 30 points of sale. 

The reactivation of the factory will be gradual, with the first milestone to produce 50,000 vehicles in 2027. In the "upcoming months" the first 150 workers will be hired, according to the Ebro CEO. 

Catalan president and Spanish PM welcome deal 

The Catalan president and Spanish Prime Minister both gave speeches welcoming Chery to Catalonia and praising both companies and the work of the administrations in reaching this deal. 

President Pere Aragonès began his speech paying tribute to the former Nissan workers. 

He thanked Catalan business minister Roger Torrent for his efforts during negotiations – which have been ongoing for years and involved several trips to China from Catalan officials – and also praised the contribution of the trade unions. 

 

The president cited Chery's decision to set up in Barcelona as evidence of Catalonia's "enormous potential." 

"To Chery and Ebro, thank you for placing your trust in Catalonia," he concluded. 

For his part, the Spanish PM said the deal illustrates "the Spanish government's total commitment to Barcelona and Catalonia." 

 

The most important news today, Sánchez said, was "the creation of jobs" the deal will bring. 

Workers' delight 

Union representatives and workers who attended the event were in jubilant mood, cheering and taking photos after the various dignitaries had spoken. 

It marks a stark contrast to the protests those same workers launched in May 2020, when Japanese firm Nissan announced it was pulling out of Catalonia after four decades. 

Treballadors de l'antiga Nissan durant l'acte protocol·lari de signatura de l'acord entre Chery i Ebro-EV Motors
Former Nissan workers at the event celebrating the deal signed by Chery and Ebro-EV Motors / Maria Asmarat

"All the struggle has been worth it," Raul Castillejos told the Catalan News Agency (ACN).