July 10, 2025

FAGOR ARRASATE EXPANDS ITS MONDRAGÓN PLANT WITH AN INVESTMENT OF OVER 20 MILLION EUROS

Fagor Arrasate event: FAGOR ARRASATE EXPANDS ITS MONDRAGÓN PLANT WITH AN INVESTMENT OF OVER 20 MILLION EUROS

The company is constructing a new heavy machining industrial building to modernize and increase its production capacity, focusing on sustainability and energy efficiency.

Fagor Arrasate is making a major industrial investment at its Mondragón headquarters, in Spain, aimed at modernizing and expanding its production capacity, as well as optimizing and reorganizing its industrial spaces. The initiative includes the construction of a new building, approximately 6,000 m² in size, adjacent to the current facilities on land previously used as the cooperative’s parking lot.

The new building will house a unit for machining large structures, up to 200 tons in weight, which will centralize heavy machining operations in Mondragón, considered a strategic activity in Fagor Arrasate’s production process. This will strengthen a critical part of manufacturing while significantly improving the efficiency and sustainability of the process.

The new boring and milling machines – featuring tables up to 30 meters long and moving columns 7 meters tall – that will equip this machining unit will not only enhance quality standards, but also reduce energy consumption and CO₂eq emissions, thereby contributing to the decarbonization of Fagor Arrasate’s industrial processes.

With this investment, Fagor Arrasate will be able to complete all production stages at its Mondragón plant, eliminating the need to transport heavy components to other locations for machining. This will lead to significant improvements in timing, cost, and environmental sustainability.

LEED Gold Certification: A Milestone in Sustainability

The new industrial building will be awarded LEED Gold certification (Leadership in Energy and Environmental Design), granted by the U.S. Green Building Council.

This certification, one of the most prestigious internationally in terms of environmental sustainability and energy efficiency, acknowledges that the building meets high standards in areas such as energy efficiency, sustainable water management, indoor environmental quality, responsible material use, and emissions reduction.

With this certification, the building ranks among the most sustainable in the Basque Country, becoming a benchmark in the region’s industrial and manufacturing environment.

Renewable Energy and Electric Mobility

The new parking area will feature photovoltaic canopies that will generate renewable energy for self-consumption, helping to reduce CO₂ emissions, improve the plant’s energy efficiency, and strengthen the cooperative’s commitment to sustainability and the energy transition. This infrastructure, in addition to providing shade and protection for vehicles, will be integrated with electric mobility solutions.

A Strategic Investment for the Future

With a total investment of over 20 million euros, including construction, infrastructure, machinery, and installations, this initiative represents Fagor Arrasate’s strong commitment to growth and innovation from its headquarters in Mondragón, by making use of currently unused industrial land for high-value projects and the creation of qualified employment.

The new infrastructure will allow the production of larger and more advanced machines – the largest in the world – thus supporting the company’s diversification strategy into new products and market sectors.

The new building is scheduled for completion in April 2026 and is expected to be operational at the beginning of 2027.

Construction work on the new Fagor Arrasate plant in Mondragon, Spain.
Construction work on the new Fagor Arrasate plant in Mondragon, Spain.