Special reconstruction. "We have turned calamity into an opportunity to compete better in the new mobility landscape." Interview with Enrique Careaga

Industrias Alegre has gone from mud to efficiency in less than a year. In just a few months, tons of mud were removed and the plant was improved while ensuring supply to customers. We discussed all these challenges with our CEO, who gave an honest and combative assessment: turning a calamity into an improvement plan.

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Q. Has this been the worst crisis the company has faced in its 70-year history?

R. Without a doubt. Over the past seven decades, we have experienced many different crises, but nothing comparable to this. The flood hit us hard. But it also hit the entire region, families, and businesses. We had never faced a situation like this in the region before.

Q. What was it like on the night of the flood?

R. I was at the plant until approximately 7:15 p.m. When I got home, videos started coming in: water was pouring in. The alert was activated and the priority was the people inside, the thirty people who were trapped and were rescued the next morning. Once that moment had passed, on the 30th at 3:00 p.m., we activated a crisis committee via videoconference and assigned responsibilities. We were only able to enter a day later. Then we realized the extent of the damage: it was like not recognizing your home and your life.

Q. Did the owners ever consider closing the company in light of the magnitude of the disaster?

A. Never. There wasn't even a moment's thought given to looking for other options. And that would be understandable, as has happened with many large and small businesses in the area. In fact, very close to our warehouse there are other companies as large as ours that have not continued their activity. But that was never considered here. On the contrary, the team immediately started thinking about how to recover and ensure supply to customers as a matter of urgency.

The owners never considered closing the company. On the contrary, the team immediately started thinking about how to recover.

Q. And that was when production began to be outsourced.

R. Yes, it was the only option, and we got to work on it immediately. It was also a very demanding process because there is no company that is a clone of ours, and we had to study who had machines that could mold our parts with the same requirements and that we could trust, with a preliminary step of repairing more than 80 molds at the same time.

Q. From a business perspective, what has this meant?

R. It has meant a huge financial effort. That is why we sounded the alarm the same week as the flood. Because we expected a quick response from the administration, providing support to the affected companies, contributing resources, or speeding up insurance procedures. Unfortunately, even today, the process is very slow. And that, for any company that does not have strong financial muscle, is catastrophic.

Q. How have the authorities responded?

R. Support from the authorities has been insufficient. We are talking about public aid for those affected by the DANA, which was quick to arrive at first, but which was derisory in terms of recovering a business. We received €150,000 in the form of a subsidy at the outset, when we need several tens of millions to recover our business.

Interestingly, what the administration failed to understand was immediately grasped by the workers, who came here to clean up mud before cleaning their own homes in order to resume their activities. And all this despite the fact that the personal situation experienced by many of these people was dramatic, tragic.

Q. Can the investment required for recovery be quantified?

R. We are talking about between 30 and 40 million euros to recover the business. So, if they give us 200,000 euros in the form of a subsidy and various other items, plus loans that are not always easy to access...

Q. How have insurance companies responded?

R. There was a more or less immediate initial reaction, as we received the first payment on account in December. But since then, we have not received anything else. And it is less than 30% of the magnitude that I mentioned that the recovery represents.

Q. Recovery has been achieved in record time. How has management dealt with this?

R. With meticulous planning of preparation, machinery purchase, installation, and commissioning of the entire infrastructure. Because we must bear in mind that we didn't just lose the machines, we lost our entire infrastructure, down to the last screwdriver. And while we were looking for ways to recover the equipment, we were also cleaning up and carrying out major civil engineering work, because the warehouse had been seriously damaged.

Q. Was it like starting from scratch?

R. No, it has been more difficult than starting from scratch, because when you start from scratch, you have a schedule that you plan, and everything you build is new. We experienced this when we set up in Poland. Here, on the other hand, we have brought in almost everything new, but after repairing a base that had been damaged.

But we had no other choice because, for us, timing was of the essence: we had to get production back up and running for the customer as soon as possible.

It has been more difficult than starting from scratch, but we had no other choice.

Q. How have customers responded during this time?

R. The response from our customers, and especially from Ford, has been exemplary, both as an organization and as individuals. From the very beginning, the people at Ford have been here, supporting us with great empathy, helping us with the organization and with the efforts of many of their volunteers. I think that without them, everything would have been much more difficult. In addition, we have also received recognition in the form of an international award that we received in Detroit recently.

Q. How has the relationship been with the companies to which production was transferred?

R. Some companies have exceeded expectations, while others have fallen far short. All have been part of this process, but some have done so proactively and with exquisite sensitivity, while others have been less proactive and much less sensitive, even taking advantage of the needs they saw in our company. The latter group includes both small and some very large companies.

Q. Let's talk about the future: how does the sector see itself after an event like this?

R. Fortunately, I am glad to say that very few companies in the sector were affected by the flood.

The common problem facing the entire automotive industry is the transition to electric vehicles, an issue that existed before the flood and will continue to exist for some time to come.

We are facing a high level of uncertainty, especially in the Valencian Community, due to our heavy dependence on Ford, which has been drastically reducing its volumes. So, for the sector, every day is a stressful day.

But we have to hold out until 2027, when we are confident we will have a greater workload. The truth is that we don't know Ford's business plan, which makes it very difficult for companies to make viability plans. In fact, some companies decided months ago not to continue.

Q. But that's not the case with Industrias Alegre.

R. No, we know we have to hold out until 2027, when key industrial issues will be resolved. We know that the sector will not return to its previous volume, because electric vehicles require other things. But it will continue to be strategic. That is why we need European and Spanish support, with financial tools that allow companies to adapt until they reach a stable and secure size.

Q. Has Industrias Alegre's diversification plan been put on hold?

R. No. Some projects slowed down, but we didn't stop any. As part of our diversification strategy, we secured a major project with SEAT for a model that will be launched in early 2026. The DANA caught us in the middle of the development phase and, despite the risk of the customer looking for another supplier, we managed to keep the program going: we repaired molds, carried out third-party testing, and are now moving towards industrialization at our own plant.

Some new projects and our innovation plans slowed down, but we haven't stopped any of them.

Q. And what has happened to the innovation plans that were underway? Have they been put on hold?

R. No, they have only slowed down. Electronics applied directly to parts, new materials, and innovation programs in general have continued. We have not stopped anything, but we have been forced to work on two types of management: day-to-day management and future management. Because neither can be stopped.

Q. In one sentence, what is the future of Industrias Alegre?

R. Continue transforming ourselves to compete better: with more efficient processes, trained and qualified employees, more advanced technology, and diversification that consolidates the company in the new mobility landscape.

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