Annual Report 1999

3

Summary

Highlights 5

Message from the President 6

FINANCIAL GROUP 9• Caja Laboral 11

• Lagun-Aro 13

• Seguros Lagun-Aro 14

INDUSTRIAL GROUP 15• Automotive 18

• Components 19

• Construction 20

• Industrial Equipment 21

• Household Goods 22

• Engineering and Capital Goods 23

• Machine Tools 24

DISTRIBUTION GROUP 25• Eroski 28

• Erkop 30

RESEARCH, TRAINING AND EDUCATION 31• Research Centres 32

• Training and Education Centres 34

Financial Statements and Trading Account 37

Organisational Structure 42

Social and Management Bodies 42

List of MCC Companies 45

5

Total Sales

International Sales

Assets Under Administration*

Equity **

Investment

Results

Workforce

726,7064,368

208,7881,255

836,0295,024

244,1851,468

62,837378

52,316314

34,397

42,129

46,861

889,7605,348

238,6471,434

949,7695,708

288,2201,732

70,763425

68,907414

1,043,8936,274

272,8851,640

1,058,9226,364

334,2322,009

86,838522

76,479460

1997 1998 1999

* Caja Laboral ** Excluding Lagun-Aro’s Funds

Highlights

In millions of pesetas In millions of euros

1997

1998

1999

E

6

attempt to maintain the

essence of our history,

updating its expression in

accordance with the social

and economic framework in

which our actions in the

future must form an integral

part.

As far as the development of

the Management Model is

concerned, we have now

gone beyond the company

certification stage, and are

making advances in EFQM

assessment where, in overall

terms, an average score in

excess of 400 points has

been achieved.

The improvements achieved

in People Satisfaction are of

particular importance. This is

one of the keys to a system

based on the prominent role

of the human beings who

form part of it.

Our commitment to

development is clear from the

investment of close to

Antonio CanceloPresident of the General Council

E veryone who forms

part of MCC can

feel legitimately

satisfied with the

achievements made in 1999.

It was a year in which most

of the objectives set were

met.

The year represented a step

forward in the reality of a

project that in its Mission

statement is defined as

“created by and for people,

committed to the community,

competitive improvement

and customer satisfaction, to

generate wealth in society by

means of business

development and job

creation”.

During this period of time

there has been a lot of

reflection about basic

aspects of the organisation.

There has been a redefinition

of the Mission statement,

Corporate Values, Basic

Objectives and General

Policies in a successful

7

87,000 million pesetas made,

enabling 4,732 new jobs to be

created.

The gradual application of the

Business Promotion Model has made

a significant contribution to

development, enabling new ideas,

capable of becoming the embryo for

n e w

businesses, to be discovered and

channelled.

The organisation of the activities most

directly related to knowledge with an

overall view enabled, among other

things, work to be carried out on

what will be, when it is approved in

2000, MCC’s first Science and

Technology Strategic Plan. This will

establish the path to be followed for

the next few years.

The idea of the Garaia Centre of

Innovation was also one of the

outstanding milestones of the year.

Collaboration between Mondragón

Unibertsitatea, the technological

centres and companies will make it

possible to set up a network of

advanced knowledge to boost

innovation and help shape the

companies of the future.

Finally, it should be pointed out that our

activities have been profitable in

economic terms, with improvements on

past situations. This has enabled us to

help each person, the workforce as a

whole and society in general make

progress with the wealth generated.

FINANCIAL GROUP

9

II n the financial area 1999stood out for the fact that theeuro came into operation as

a billable, although not yet physi-cal, currency, and the change inthe trend in interest rates, whichafter falling during the first half ofthe year began to rise in thesecond half.

MCC’s Financial Groupcontinued to record the highlevels of efficiency alreadydemonstrated in the two previousyears, having successfullyovercome adverse circumstanceslike the tightening of the grossearnings margin and the volatilityof the financial markets.

In 1999 MCC’s FinancialGroup’s compliance with itsBasic Corporate Objectives hasbeen as follows:

Customer Satisfaction. Duringthe year advances continued to bemade in the continuousimprovement of quality, with ISO9002 certification obtained for anumber of activities, like CajaLaboral’s telebanking service,Lagun Aro’s Company MedicineService and in the sale andmanagement of car insurance.

In the banking area, customershave been assigned to specificmanagers and products andservices prepared for differenttypes of customers.Complementary sales channels,like telephone banking andInternet banking (Caja LaboralNET), have been consolidatedand the number of branchesopening in the afternoonincreased.

Profitability. The tightening ofthe gross earnings margins wasoffset by the increased volume of

business recorded during theyear. Other factors which had afavourable effect on profitabilitywere the recovery in the stockmarket in the last quarter of theyear, with the resultingfavourable effect on theinvestment portfolio, and thesignificant reduction indelinquency. All these factorshelped to consolidate the results.

Internationalisation. In 1999there was an increase in 13% inthe volume of commercialoperations abroad. 68% of thisbusiness was with co-operativeenterprises and the remaining32% with other business clients.During the year the network offoreign correspondent banks wasreinforced, extending it to newgeographical areas, and takingthe total to more than 900.

Development. The activity ofthis Group increased significantlyin 1999 with both assets underadministration and bankinvestment recording two-digitgrowth. The considerableprofitability obtained also helpedto reinforce the soundness of thenet worth of the institution, takingCaja Laboral’s equity to125,453 million pesetas, a 13%increase and Lagun-Aro’s fundsto 333,303 million pesetas, a16% increase. Geographicalexpansion was concentratedmainly on the leading cities in theCastilla-León region, where fournew branches were opened.Finally, the increase of 2,074 inthe number of Lagun Aromembers stands out, as it was thelargest increase in its history.

Worker Participation. In1999 the opinion that membersof this Group have of its Policyand Strategy was assessed forthe first time. The knowledge

management process was alsodocumented in order to be ableto transmit the best practices fromone business centre to another.

Training during the year wasmainly aimed at improving thetechnical level of staff, promotioncourses and help forcomplementary courses. It shouldalso be highlighted that over theyear, 1,381 million pesetas fromCaja Laboral’s Education andPromotion Fund were earmarkedfor co-operative training andpromotion.

Among the aspects relating toLagun Aro, the positiveperformance of the EmploymentAid benefit should behighlighted, which enabled areserve fund totalling 3,843million pesetas to be set up forthe future. Mention should alsobe made of the increasingactivity of the CompanyMedicine Service, due to theincrease in the number ofworkers in the Group and theawareness among the co-operatives about the preventionof occupational hazards and thecontrol of environmentalpollution.

Juan María OtaeguiMCC Vice-president

Chief Executive – Financial Group

FINANCIAL GROUP

10

FINANCIAL GROUP

11

C

CAJA LABORALSdad. Coop. de Crédito

C aja Laboral is a creditinstitution set up by theindustrial co-operatives.

From the start it has played a keyrole in the promotion, financingand business development of theco-operative movement, of whichit has become the flagship,establishing the bases of what istoday Mondragón CorporaciónCooperativa.

1999 was a good year for CajaLaboral, in spite of a number ofcomplications inherent in thevolatility of the financial marketsand the historic minimum levelsof interest rates, which put a lotof pressure on the gross earningsmargin of the banking sector.

Total assets on the balance sheetaccounted for 997,565 millionpesetas at the end of 1999,which is an increase of 9.5%compared to 1998.

Customer assets underadministration, including thoseadministered off the balancesheet, totalled 1,058,922 millionpesetas at the end of the year,with a notable increase over theyear of 12%. There was achange in the market trend, witha return to traditional savingsschemes to the detriment of unittrusts. Fixed term deposits as awhole increased by 52%, whileunit trusts and the other off-balance sheet items fell by 12%. Equity continued to grow,boosted by the high level ofprofitability obtained and thedemanding policy ofcapitalisation of profits, takingthe final figure to 125,453million pesetas. In accordancewith Bank of Spain regulations,

the institution’s capitaladequacy ratio was 19.1%,well in excess of the minimumrequirement of 8%, as well asthe average for the sector.

As far as lending businesswas concerned, net bankinvestment increased by19.5% over the year, takingthe balance of this heading to612,620 million pesetas. Themost active type of loan isstill the mortgage loan, withan increase of 71,788 millionpesetas. Mortgage loans nowaccount for 71% of all loansto the private sector.

Net investment of thesecurities portfolio, consistingof fixed and variable incomesecurities, as well as holdingsin group companies, rose to192,028 million pesetas, arelative increase of 14%.

For its part, investment incash, banks and creditinstitutions, the balance ofwhich includes the cash and

central bank figures as wellas the net position with creditinstitutions, fell by 15%, witha balance of 90,118 millionpesetas at the end of theyear.

In terms of the profitabilityobtained in 1999, in spite ofthe difficulties deriving fromthe low interest rates in forceduring the year, the increasein business volume enabledthe gross earnings margin tobe improved by 7%. Thistogether with the fact that thenet commission on serviceswas 4% higher than in 1998and that provisions made tothe value of 3,431 millionpesetas have beenrecuperated, means thatprofits before tax came to20,379 million pesetas,which was 10% higher thanin 1998.

In this regard, it should behighlighted that theprofitabili ty achieved byCaja Laboral on its average

Caja laboral, Elorrio branch.

total assets was 2.28% in1999, a “ratio” double theaverage equivalent obtainedby Savings Banks.

Caja Laboral’s soundness is areflection of this efficiency, asrecognised by “The Banker”magazine published by theFinancial Times Group, whichputs Caja Laboral among theone hundred most solventbanking institutions in theworld, in 96th position.

Finally, a mention should begiven to Aroleasing, a

company specialising infinancial leasing, which hasbelonged 100% to CajaLaboral since 1996.

In 1999, Aroleasing signednew contracts to the value of16,270 million pesetas,which represents an increaseof 23% over the 1998 figure.Of all the investment made,66% was channelled throughthe branches of Caja Laboral.

Loan investment at the end ofthe year totalled 31,446million pesetas, with an

increase of 22% over theyear and the doubtful debtratio at 1.8%, animprovement of 34%compared to the percentagerecorded in 1998, and baddebt cover at 126%.

FINANCIAL GROUP

12

EquityIn millions of pesetasIn millions of euros

1997

98,183590

1999

125,453754

1998

111,289669

Net bank InvestmentIn millions of pesetasIn millions of euros

1997

438,3842,635

1999

612,6203,682

1998

513,1723,084

Assets under AdministrationsIn millions of pesetasIn millions of euros

1998

949,7695,708

1999

1,058,9226,364

1997

836,0295,024

FINANCIAL GROUP

13

T

LAGUN-AROVoluntary Social Welfare Institution

T he members of Lagun Aroare members of co-operatives, mainly

forming part of MondragónCorporación Cooperativa. It isLagun-Aro’s task to provide socialwelfare cover for these membersand their families, at a similarlevel to the cover provided by thestate system.

At 31 December 1999, Lagun-Aro had 22,665 members, in113 co-operatives. This figurewas an increase of 2,074 duringthe year, the biggest in LagunAro’s history. 31% of the newmembers belonged to the newlimited duration or special quotaforms of membership.

As far as pro rata benefits areconcerned, these totalled 6,252million pesetas in 1999 andwere mainly for:

* Sick Leave, 2,733 millionpesetas (43.7% of the total). * Health Care, 2,238 millionpesetas (35.8% of the total).

Employment Aid should also behighlighted as it has fallen to 40million pesetas, with a surplus of1,339 million pesetas generated.This amount, added to the 2,504million pesetas from 1998, givesa positive balance of 3,843million pesetas on the balancesheet.

It should also be highlighted thatthe Ministry of Health made apayment of 1,768 million pesetasin compensation for collaborationin the area of health in 1998.

The benefits for Retirement,Widowhood and Invalidity,which have to be guaranteed forlong periods of time and for alarge number of members, arefinanced by reserves toguarantee the correspondingpensions and which accountedfor funds totalling 333,303million pesetas at the end of1999, once the returns on theinvestment portfolio had beenapplied.

These funds enabled 5,923million pesetas in pensions to bepaid out in 1999. At the end ofthe year, there were 5,207people receiving pensions.

Lagun-Aro’s activities also includea Company Medicine Service,which achieved AENORcertification to ISO 9002 in1999 for the following activities:

* Preventive and companymedicine.* Clinical, toxicological anddrinking water analyses.* Ergonomics and safety at work.* Industrial hygiene* Environmental measurements of

the air and noise levels.The activities of this departmenthave been affected by the growthin the number of members andthe concern of the co-operativesabout the prevention ofoccupational hazards and thecontrol of environmentalpollution.

In 1999, the following serviceswere carried out:

* Health checks: 2,289 medicalexaminations on possible newmembers and 28,432 analyses.* Industrial hygiene: 2,644assessments.* Industrial safety: 70 analyses.* Environment: 1,610assessments.

FundsIn millions of pesetasIn millions of euros

1997

238,8731,436

1999

333,3032,003

1998

286,4121,721

1SEGUROS LAGUN-ARO

1 999 was a very good yearfor Seguros Lagun-Aro andSeguros Lagun-Aro Vida,

with efforts having beenconcentrated on risk selection,the improvement of commercialproductivity in priority segmentsand on claims management.

Income obtained from insurancepremiums and financial incometotalled 19,800 million pesetas,for both companies, of which13,435 million pesetascorresponded to premiumscharged. In general insurance,there was growth of 17.6%,taking turnover to 8,107 millionpesetas, with a total of 181,417policies now issued.

In Life Insurance, turnover totalled5,328 million pesetas, with agrowth of 58% in priorityproducts compared to 1998. In 1999 the company also fully

adapted to the requirements ofthe New Regulations for thesector, which came into force atthe start of the year. Mentionshould be made of the additionaleffort required regardingtechnical provisions.

Other events worthy of mention,included in the current StrategicPlan, were as follows:

* Commercial development, withcar insurance added to the rangeof products sold through thebranches of Caja Laboral.

* Investment in new informationtechnologies, mainly in the lifeinsurance company, aimed atstarting up new unit linkedproducts and overall businessmanagement.

* Total quality management interms of ISO-9002 assurance forthe sale and management of carinsurance taken out in Seguros

Lagun Aro branches, theapplication of the EFQM self-assessment model and the stepstaken in a number of areas inwhich the need for improvementwas detected.

FINANCIAL GROUP

14

Lagun-Aro, Mondragón.

INDUSTRIAL GROUP

15

11 999 began with the threatof an internationaleconomic crisis. However,

this fear was dispelled as theyear went on and the Europeanand Asian economies began torecover.

In tune with this improvementon the expectations, theindicators for MCC’s IndustrialGroup gradually improved overthe year. The goodperformance of domestic saleswas complemented by therecovery in exports in thesecond half of the year, as theresult of the more favourableinternational climate and thegradual weakening of the euro,which increased thecompetitiveness of our productscompared with those from thedollar zone.

The main achievements as faras the Basic CorporateObjectives are concerned wereas follows:

Customer Satisfaction. In1999 progress continued to bemade with this objective, withthe following among theactions taken: improvement inquality, reduction in deliverytime, increasing customerloyalty and the redesign ofcommercial processes.

As far as the quality of theproducts and processes of theco-operatives are concerned,71 co-operatives now haveISO 9000 certification andmost of them are also going onto do an assessment based onthe EFQM methodology. In thisregard, it is worth highlightingthat the Department of Industryof the Basque Government,after an assessment carried out

by the Basque Foundation forthe Promotion of Quality(Euskalit), awarded the Gold Qprize to Irizar and the Silver Qto Copreci and Fagor Electronica,as these companies exceeded500 and 400 points,respectively, in the assessment.

It should also be highlightedthat, in order to optimisecustomer service, the co-operatives operating in theautomotive sector havecontinued setting upmanufacturing plants close towhere their customers arelocated, specifically in Brazil,Great Britain and the CzechRepublic.

Profitability. The positiveperformance of demand in1999 as a whole resulted in ahigh use of the Group’sproduction capacity. Thistogether with other factors likelow interest rates and internalcost control led to a 17%increase in profits over theyear, with profitability oversales in the order of 6.4%. Thedivisions that performed best inthis regard were the Household

division, due to the increase infamily income and the boom inthe building of homes, whichhave boosted the sales ofdomestic appliances andfurniture, and IndustrialEquipment, where the highlevel of profitability of thecoach bodywork businessstands out.

Internationalisation. Inspite of the weakness of theinternational economy duringthe first half of the year,with the plausible exception ofthe United States, progresscontinued to be made on thestrategic objective ofinternationalisation. TheIndustrial Group achievedinternational sales, exports plussales from production plantsabroad, totalling 213,491million pesetas. This figurerepresents a 16% increase overthe figure recorded in 1998,leading to an increase in theproportion of internationalsales over total sales from46.9% in 1998 to 47.6% in1999.

At the end of 1999, the IndustrialGroup had 23 manufacturingplants abroad. The mostimportant events in 1999 werethe incorporation of thecompanies set up in Mercosur byPromoauto, 50% of which wasacquired at the end of 1998, thepurchase by FagorElectrodomesticos of a majorityholding in the Polish domesticappliance manufacturerWrozamet, as well as the newplants set up abroad by Maier(Great Britain), Batz (Brazil),Cikautxo (Czech Republic) andIrizar (Mexico and an increase inthe existing investment in Brazil).

INDUSTRIAL GROUP

16

Ecotècnia, wind farm.

Development. Thedevelopment of the IndustrialGroup has been significantover the last few years, withturnover and equity havingdoubled in five years.Turnover in 1999 accountedfor 448,132 million pesetas,with an increase of 14.5%compared to 1998. The most dynamic divisionswere Household Goods andEngineering and CapitalGoods, which have benefitedfrom the positive situation interms of spending andinvestment, respectively. Thegrowth in the Constructiondivision also stood out. Thiswas due to the incorporationof Ecotècnia, a Catalonian co-operative producingequipment for the renewableenergy sector.

The investments tackled by thisGroup in 1999 accounted for35,639 million pesetas, whichis 14% more than theinvestment figures for 1998. Industrial employment alsorose by 2,328 jobs takingthe total workforce to 21,913people. Three new co-operatives joined MCC in1999: Consonni, engaged inthe manufacture of electricheating elements, DomusaCalefacción, a manufacturer ofdomestic central heatingboilers and Ecotècnia,mentioned above.

Worker Participation. Inorder to increase participationin management, a method forthe Deployment of Objectiveshas been developed incollaboration with theUniversity of Deusto,Ibermatica and LKSConsultores. This will enable

the objectives established forthe different levels of theorganisation to be alignedwith the strategies of theBusiness Units.

Other basic aspects tackled in1999 were the implementationof the Management Develop-ment model –as a tool forimproving the knowledge,capabilities and qualities ofmanagement teams-, furtherwork in the area of internalcommunication, the preventionof occupational hazards, withthe involvement of 64 co-operatives, and theimplementation ofenvironmental management

systems, with 48 co-operativesinvolved.

An extensive survey was alsocarried out to assess peoplesatisfaction, and a boost wasgiven to the policy ofincreasing the number of co-operative members comparedto the total workforce. This ledto increase of 1,582 in thenumber of members comparedto 1998.

INDUSTRIAL GROUP

17

Workforce

1997

18,797

1999

21,913

1998

19,585

InvestmentIn millions of pesetasIn millions of euros

1997

25,791155

1999

35,639214

1998

31,400189

International SalesIn millions of pesetasIn millions of euros

1997

156,037938

1999

213,4911,283

1998

183,7521,104

Total SalesIn millions of pesetasIn millions of euros

1997

343,9622,067

1999

448,1322,693

1998

391,4612,353

TAUTOMOTIVE

T The overall turnover ofthe Division increasedslightly in comparison

with 1998 and internationalsales rose by 11%, in a yearcharacterised precisely by theboost given tointernationalisation.

Among the actions taken, thesetting up of the company“Promoauto Desarrollo deAutomoción S.A.”, to co-ordinate and promote activitiesin Mercosur, stands out. Thefirst of the projects to bebrought to fruition was Batz doBrasil, which started theproduction of jacks, pedal unitsand brake levers in the town ofTaubaté, close to Sao Paulo.

In Europe, Maier began workon the construction of a factoryin Lichfield, near Birmingham,with an investment of 2,500million pesetas. Production isplanned to start in the secondhalf of 2000. The plant willmanufacture externalthermoplastic car parts for carmakers in the United Kingdomand north of France. The maincustomer will be Nissan, aswell as Honda, Toyota and thePSA group.

Cikautxo set up a productionplant in the north of the CzechRepublic to produce thermalrubber parts, with aninvestment of 400 millionpesetas. Its aim is to supply theGerman automotive anddomestic appliance marketsand facilitate the introductionof its products into EasternEuropean countries.

Fagor Ederlan carried out

significant investments to thevalue of 3,728 million pesetasto extend its aluminium die-casting and machining plantsby 50%. These have beenequipped with high quality,precision machinery, placingthe company at the forefront ofthis sector in Europe, intechnological terms. Thecompany also built a plant inBorja, to produce frontsuspension columns for GeneralMotors in Figueruelas, in itscapacity as a global supplier ofsafety parts for the Corsa 2000project, with suppliesbeginning in July.

Its subsidiary FIT Automoción, inwhich Fagor Ederlan has a 33%equity holding, together withMCC Inversiones (33%) and theGerman company ContinentalTeves (34%), had a verysatisfactory year with 51%increases in the sale of brakesystems for Volkswagen inGermany. FIT Automoción willinvest 1,500 million pesetasover the three-year period 1999-2001, doubling its production

capacity and thereby confirmingthe consolidation of a businessproject launched in 1998.Finally, Mapsa continued withits ambitious investment planwhich will be concluded in2000 and account for 3,000million pesetas. It will increasethe company’s productioncapacity to two million wheelrims.

José María AldekoaMCC Vice-president

Chief Executive - Automotive

INDUSTRIAL GROUP

18

COMPANIES:

Automódulos, Batz do Brasil, Batz Sistemas,Cikautxo, Cikautxo Cz, Fagor Ederlan, FagorEderlan Borja, Ferroplast, Fit Automoción,FPK, Galdan, Luzuriaga Tafalla, LuzuriagaUsurbil, Maier, Maier Navarra, Mapsa andPromoauto.

1998 1999

Sales 81,055 83,250487 500

Intern. sales 48,079 53,301289 320

In millions of pesetasIn millions of euros

Fagor Ederlan.

T

INDUSTRIAL GROUP

COMPONENTS

T The turnover of thisDivision increased by12% and its international

sales in a similar proportion. Justas in 1998, the investments of theDivision played a strong role,accounting for 6,168 millionpesetas and were earmarked foran increase in the capacities ofthe different lines of business, anincrease in productivity withgreater automation and thedevelopment ofinternationalisation.

In the R&D area, a carbonmonoxide and methane sensorbased on sensors-semiconductorsand fuzzy logic was developed.A project was also launchedwithin the framework of the5th IST (Information SocietiesTechnology) programme, aimedat developing intelligent chemicalsensors for gas manufacturedwith low cost CMOS technology,with integrated electronics andsensitive hybrid layers.

In White Goods, Copreciset up a joint venture with theUS company Burner SystemsInternational (BSI), tomanufacture subunits for thecooking appliance sector, for theU Smarket. In the Mexican plant inGuadalajara, there wasinvestment to enable washingmachine components to be builttogether with cooking appliancecomponents, therebyconsolidating the activity of thisimportant factory.

In the area of R&D, an electronicenergy control based on opticalsystems was developed forapplication in domesticappliances. Work also continued

on the development of electronicsystems for induction cooking,using advanced controlalgorithms.In the field of quality, mentionshould be made of Coprecibeing awarded the Silver Qprize after obtaining morethan 450 points in the EFQMassessment carried out by theBasque Foundation for QualityAssessors’ Club.

In the area of Home Comfort,the inauguration of Orkli’s newinstallations, coinciding with thecompany’s 25th anniversary,stands out. They occupy 10,000 m2

and are engaged in theproduction of ambienttemperature regulation andcontrol valves for domesticcentral heating.

In R&D, an independent supplysystem using photovoltaicconverters was developed forgas domestic appliances and,as part of the Eureka-EurimusProgramme, work was carriedout on a microsystem toguarantee efficient, low-emissionlevel combustion in gas boilers.

In Electronics, Fagor Electrónicaobtained QS-9000 certifica-tion, which is very important inthe automotive industry andwon the “Prize for ContinuousImprovement” in the BasqueCountry.

In R&D, the company madesignificant advances in thedevelopment of a electronificationproject for domestic and home-comfort appliances, in theregulation, control and safetyfunctions, in collaboration withvarious Universities and ResearchCentres.

Also in the field of R&D, thedevelopment, as part of the IntekProgramme, of cable TV head-endsystems, designed for interactivedigital TV services, should behighlighted.

José Luis OlasoloMCC Vice-president

Chief Executive - Components

19

COMPANIES:

Consonni, Copreci, Copreci México, Eika,Embega, Fagor Electrónica, Matz-Erreka,Orkli, Tajo and Zerco.

1998 1999

Sales 46,222 52,141278 313

Intern. sales 29,024 32,825174 197

In millions of pesetasIn millions of euros

Orkli.

ICONSTRUCTION

I n line with the dynamicnature of the previous year,the sales of this Division

increased by 26%, a figurethat includes the turnover of the Catalonian co-operativeEcotècnia, which joined MCC atthe beginning of the year.

In Lifts and Elevators, Oronaincreased its sales by 24%, withan excellent performance and theconsolidation of a lot ofinvestment in the industrial area.

On the domestic scene, importantprojects were those completed atLa Bretxa market in SanSebastian, the Son Moix stadiumin Palma in Majorca and LaGalera wharf in Algeciras. Onthe international stage, Orona iscurrently exporting to more than40 countries, with a strongincrease forecast for 2000.

In Structures and Handling,Urssa built the paper factories atCondat in France, Zicuñaga inHernani (Guipúzcoa) and Saica-3 in Burgo del Ebro (Saragossa).Important projects were alsocarried out in the iron and steelindustry, with the extension to theSidenor factory in Basauri, thenew plant in Vitoria and the onefor the furnace for Aristrain inOlaberría.

In industrial buildings, thefollowing orders stand out: themetal structure for the newMercedes-Benz factory in Vitoria,to the value of 3,000 millionpesetas and the structure of anumber of buildings for the

logistics involved in the CERNlaboratory particle accelerator inGeneva.

In urban buildings, mentionshould be made of thecompany’s participation in thesecond phase of the Bilbao metroand the building of the structuraldome for the “Grantecan”telescope on the Canary Islands,the biggest and most advancedin the world. The lifting bridge inthe port of Barcelona, which willbe the biggest in Europe and the500-tonne rotating bridgedesigned by Calatrava in BuenosAires also stand out.

Orona’s Spatial StructuresDivision built a number of sportscentres in Spain, as well as theroof of the Science Museum inAlcobendas. At the internationallevel, the company built thepavilion inside the MillenniumDome in London, the Inezganesports centre in Morocco and theroof of Loughborough Universityin the United Kingdom.

A special mention should begiven to Ecotècnia’s first year asa member of MCC, in which thecompany achieved a turnover of6,310 million pesetas and wonnumerous orders that will boostits growth enormously. This willbe helped by the creation acompany to promote wind farmsin which bodies from theCorporation will have a holding,as well as the construction of anew assembly plant in Buñuel(Navarra), which will providework for 40 people. Intechnological terms, thedevelopment in house of a 1,200

Kw wind-powered generator andthe signing of a technologytransfer agreement with theJapanese company HitachiZosen stand out.

In the Handling sector, Rochmaninaugurated its new plant forpackaging machines andBiurraerna negotiated anagreement with Hyundai for theexclusive distribution in Spain ofpublic works machinerymanufactured by the Koreanmultinational.

In Construction Work andMaterials, Lana increased itssales by 26% and launched anambitious investment plan inexcess of 2,000 million pesetasfor the period 1999-2002,aimed at substantially increasingproduction capacity of three-plyboards for construction, furnituremanufacture and decoration. Thetarget is to increase turnover from2,400 million pesetas to 4,800million, concentrating on foreignmarkets.

Jesús MaizteguiMCC Vice-president

Chief Executive - Construction

INDUSTRIAL GROUP

20

COMPANIES:

• Lifting systems:Orona.

• Structures and Handling:Biurrarena, Ecotècnia, Orona, Rochmanand Urssa.

• Construction Work and Materials:Covimar, Etorki, Lana and Vicon.

1998 1999

Sales 33,416 41,971201 252

Intern. sales 6,632 5,63140 34

In millions of pesetasIn millions of euros

INDUSTRIAL GROUP

21

CINDUSTRIAL EQUIPMENT

C ontinuing the excellentperformance of recentyears, 1999 was an

exceptional year, in which theinvestments made abroad startedto bear fruit, with more than 50%of turnover coming frominternational sales, which were21% higher than in 1998.

Technology and developmentcontinued to be fomented froman overall point of view, basedon a high level of profitabilityand investments over sales, withfigures of more than 10%maintained for both ratios.

In Leisure and Sport,international expansion wasintensified, with the businesses inthis area achieving solidpositions. Dikar-Wingroupextended its internationalstructure by taking holdings in anumber of companies in Chinaand setting up a sales companyin France. Eredu confirmed theconsolidation of Enea with anincrease in sales, which havetripled over the last three yearsand the building of a plantspecifically for this activity.Orbea strengthened itsleadership in the Spanish marketand continued its penetration intoEuropean markets.

Components and TechnicalEquipment had anotherexcellent year, based on thethrust of Irizar, with a 29%increase in turnover and 47%increase in international sales.

Irizar capped its spectacularperformance by obtaining theGold Q prize in the EFQMassessment and with the start upof a new plant in Mexico. The

company continued to performstrongly on the internationalstage, which accounted for 66%of total sales.

The growth and profitability ofEderfil should also behighlighted. This companyimplemented an automaticproduction control system and anoccupational hazardmanagement system. Urolaconsolidated its machineryactivity, concentrating its effortson product development,

Industrial Services also had agood year, with continuedexpansion of its businesses andthe culmination of the SENAproject in Colombia on the partof Alecop.

Alkargo continued to grow, witha 33% increase in sales and theextension of its range ofproducts. Coinalde strengthenedits international expansion and itsproduction capacity with theconstruction of a new plant. Theprinting companies Elkar andDanona made advances inestablishing a common business

focus, by increasing theirprofitability and competitiveness.Osatu and Oiarso revitalisedtheir presence abroad, on thebasis of the development ofproducts of their own andincreased sales activity.

Iñaki OtañoMCC Vice-president

Chief Executive - Industrial Equipment

COMPANIES:

• Leisure and Sport:Dikar, Eredu, Orbea, Shanghai Dikar,Wingroup and Wingroup Amazonia.

• Technical Components andEquipment:Ederfil, Hertell, Irizar, Irizar Brasil, Irizar Maghreb, Irizar México, Tianjin Irizar Coach and Urola.

• Industrial Services:Alecop, Alkargo, Coinalde,Danona Litografía, Elkar, Oiarso, Osatu,Prodeso and Rotok.

1998 1999

Sales 47,864 54,128288 325

Intern. salec. 22,533 27,365135 164

In millions of pesetasIn millions of euros

Orbea.

T

INDUSTRIAL GROUP

22

COMPANIES:

• Domestic Appliances:Domusa, Edesa, Extra Electromenager,Fagor Electrodomésticos, Geyser Gastech,Mc Lean and Wrozamet.

• Furniture:Coinma and Danona.

• Comercial Equipment:Fagor Industrial, Fagofri and Kide.

1997 1998

Sales 120,515 146,901724 883

Intern. sales 46,062 54,994277 330

In millions of pesetasIn millions of euros

HOUSEHOLD GOODS

T his Division had a verypositive year, withexcellent productivity

levels and a 21.9% increase inturnover and a 19.4% increasein international sales, includingproduction in plants abroad.

In Domestic Appliances,Fagor had an excellent year, witha 20% increase in sales. In thedomestic market, the company’sgrowth was 12% above themarket average, which was7.3%, thereby consolidating itsleadership in the sector with amarket share of almost 24%,according to data provided bythe Nielsen consultancycompany.

In the international sphere, it wasvery dynamic year, with a 21.2%increase in foreign sales and theadoption of important strategicdecisions. Among these, theacquisition of 76% of the Polishcooker manufacturer Wrozamet,with its headquarters inWroclaw, stands out.

Wrozamet achieved a turnoverof 12,775 million pesetas and, inaddition to being the leadingcooker manufacturer in Polandwith a 48.5% share, thecompany has a growingpresence in Germany, CzechRepublic, Hungary and the Balticstates.

In Morocco, Fagor consolidatedits position of joint leadership,with a 22% penetration,successfully producing fridges,gas water heaters and washingmachines at its plant inMohammedia.

In Argentina, in spite of theeconomic crisis, McLean againincreased its market share,with 22% in fridges and 13% infront-loading washing machines,a segment in which it is themarket leader.

The alliance with the Germancompany Vaillant continued towork well by means of theGeyser-Gastech joint venture inBergara, which has an installedcapacity of 800,000 waterheaters.

Fagor also continued with itshigh level of investment, with3,785 million pesetas earmarkedfor its plants in the BasqueCountry, in addition to the5,200 million pesetas it cost toacquire Wrozamet, together withMCC Inversiones. In terms ofinvestment, the inauguration ofthe refurbished refrigerator plantin Mondragón should behighlighted. This plant nowhouses all refrigeratormanufacturing and has aproduction capacity of 800,000units a year.

In Furniture, Coinma continued

to grow and consolidate itsposition in the office furniturerange, with a 22% increase insales abroad. Danona did notperform as well as in 1998, dueto a fall in its exports which,however, were still high,accounting for 52% of total sales,and, once again confirming thecompany’s leadership in terms ofexports.

In Commercial Equipment,the sales of the subgroup againrecorded strong growth of 25%.Kide achieved leadership in theSpanish market in the sale ofinsulation panels, with a 33%increase in sales.

Fagor Industrial had an excellentyear. The company extended itstraditional cooker anddishwasher manufacturing lineswith new washing machine andindustrial refrigeration lines in itsplant in Lucena. Export sales roseby 15%.

Jesús CataniaMCC Vice-president

Chief Executive - Household Goods

Fagor Domestic Appliances.

T

INDUSTRIAL GROUP

ENGINEERING AND CAPITALGOODS

T here were two quitedifferent side to theperformance of this

Division in 1999: on the onehand, the order book levelspreviously achieved led to a 20%increase in turnover, with historicsales levels totalling 42,000million pesetas.

At the same time, demand in themachinery and industrialequipment sector fell, reversingthe upward trend of previousyears and affecting the forecastsmade for the Forming Machineryand Automation and Controlsubgroups.

In Automation and Control,turnover was balanced in spite ofthe recession in the sector, whichhad a greater effect in USA andCanada. The position wasdifferent in the European Unionand there was a strong recoveryin South-east Asia.

Technological development wasintense and aimed at thecompletion of importantnumerical control and displayprojects, with managementbased on organisation bybusinesses.

In Forming Machinery, theyear was marked by projectmanagement, which exceededthe 1998 volume by 28%, withpeaks of up to 50% in somecompanies and businesses,requiring a significant increase in

technical and management staff.

This high level of activity led toexcellent profitability levels, inaddition to improvements inquality indicators and deliverytimes in an increasinglydemanding global context.

The list of companies, both interms of new orders and orderssupplied is ample and qualified.In the automotive sector itincludes: BMW, Daimler-Chrysler, Ford/Volvo, Renault,Benteler, Gonvarri, Magna,Tower and Valeo. In the domesticappliance sector it includes:Electrolux, Fagor, GeneralElectric/Mabe, Whirlpool andOrkli. Finally, in the iron andsteel sector, mention should bemade of Thyssen and Acerinox.

Engineering and Consul-tancy also had a busy year interms of project management,with an average increase of 18%compared to 1998, with increa-ses of up to 40% in somebusinesses.

An outstanding characteristic ofthis Subgroup lay in the continualefforts made to promote newcompanies and activities,especially in theTelecommunications andInformation Systems sector, whichled to annual growth rates inexcess of 50%.

However, the improvement inincome means a significantincrease in the number of highlyskilled jobs, with profitability alsoperforming very well.

José Ramón Goikoetxea

MCC Vice-presidentChief Executive - Engineering and

Capital Goods

23

COMPANIES:

• Automation and Control:Fagor Automation.

• Engineering and Consultancy:Diara, Enyca, LKS Consultoría,LKS Ingeniería, LKS CDEE, LKS Intelcom,MSI, I3S, Ondoan and SEI.

• Forming Machinery:Aurrenak, Batz Troquelería,Fagor Arrasate, P.I. Proin,Fagor Sistemas, Cima and Ona-Pres.

1998 1999

Sales 35,927 42,246216 254

Intern. sales 17,197 23,730103 143

In millions of pesetasIn millions of euros

Fagor Arrasate.

TMACHINE TOOLS

T he year wascharacterised by a 4%increase in sales, a 10%

increase in exports and amoderate level of profitability.Less satisfactory were the orderbooks for the Division as awhole, which were at 65% of thefigure for 1998, meaning thatnext year will be morecomplicated.

In Machine Tools, the 12%reduction in orders won wasquite a lot lower than the 22%average recorded by the sectorin Spain. However, the orderbooks only reached 62% of the1998 level, although there was acertain amount of recovery in thelast quarter of the year.

Turnover increased by 5% andexports by 13%, with Soralucestanding out as the leadingexporter in the world of millingcentres to Germany, a country towhich it sends 41% of itsproduction. As far as foreignorders are concerned, Germanywas once again at the top of theranking, accounting for 51% ofthe total together with France andItaly, followed by China. Italyappeared for the first time in thelist of the main countries thatpurchase products from thisDivision.

In the automotive sector, it shouldbe pointed out that the DanobatGroup has the leading productfor crank shaft machining, whichhas been sold to customers asrepresentative as Volkswagen,Renault, Krupp, PSA Group,

GM/Opel and Ford/Volvo.In this context, mention should bemade of the delivery of a numberof lines to the Iranian companyKhodro, for the automaticproduction of two key engineparts: the block and cylinderhead. The complete order wasworth more than 4,000 millionpesetas.

In the aeronautics sector, neworders were won for grindingmachines for grinding turbineblades from the French companySnecma. This company orderedthree machines to the value of300 million pesetas. GeneralElectric also ordered one for itsplant in Wales, in addition tothose already supplied for itsplants in USA and Egypt, andanother for Delta Airlines.

An important order wasnegotiated with General Electric,which will be confirmed in thef i r s tquarter of 2000. It will be for thedelivery of 15 machines to theoverall value of 650 millionpesetas, for machining parts

for the multinational’s EnergyGeneration Division plants inUSA and France.Danobat also has top levelcustomers in the aeronauticalsector like: American Airlines,Boeing, British Airways, Delta,Sabena, Sikorsky Helicopters,Iberia, Swissair, United Airlines,Bendix, BNB, the Japanesecompany IHI as well as theaforementioned General Electricand Snecma.

In Woodwork Machinery,Tooling and Fixtures, saleswere similar to the 1998, in arather modest year, although Latzand Zubiola improved theirpositions in their sector andended the year with figures betterthan those forecast.

Antonio EcheverríaMCC Vice-president

Chief Executive - Machine Tools

INDUSTRIAL GROUP

24

COMPANIES:

• Cutting Machine Tools:Danobat, D+S Sistemas,Estarta Rectificadora, Goiti, Lealde andSoraluce.

• Woodwork Machinery,Tooling and Fixtures:Doiki, Egurko, Latz, Ortza and Zubiola.

1998 1999

Sales 24,944 25,845150 155

Intern. sales 14,225 15,64585 94

In millions of pesetasIn millions of euros

Danobat.

25

DISTRIBUTION GROUP

II n 1999 the positive perfor-mance of consumer spen-ding meant that the retail

sector had a satisfactory year,which in the case of MCC’s Dis-tribution Group enabled thequantitative targets to be met andthe Basic Objectives to be tac-kled with success.

Customer Satisfaction. In thisarea work has been carried outon the constant adaptation ofthe stores, with an extensiverange of new products andservices that consumers can takeadvantage of in the samephysical space that they do theirnormal shopping. Some of thesenew services are as follows: in-store bakery, newspapers andmagazines, home shopping,telephony, jewellery, sale of art

and culture, etc.

The cold meats and fruit sectionshave obtained ISO 9002certification and the ground hasbeen prepared for certificationfor the fish section in 2000.The Natur meat product rangewas also presented. This rangeprovides full traceability of theproduct, with identification of thesource of the items offered tocustomers, and completelyguarantees quality.

The Travel Agency extended itsoffer in the business servicessegment, with the start up of a“24 hour service” aimed atguaranteeing service forprofessionals in the sector.

Profitability. In 1999consumer spending was quite

vigorous and the DistributionGroup achieved an excellentincrease in sales of 20%, whichrepresents a gain in marketshare to the detriment of othercompetitors. The composition ofthe Group’s turnover has alsoimproved, with more growthproportionally in fresh produceand non-food items, which givehigher margins. This has led a30% increase in profits.

Internationalisation. TheDistribution Group operatesmainly in Spain. However, it isalso present in France, through itssubsidiary Sofides, which has3 hypermarkets and a chain of19 supermarkets.

The Group is also a member ofthe Intergroup non-food

DISTRIBUTION GROUP

26

Eroski, Elorrio headquarters.

DISTRIBUTION GROUP

purchasing group, located inDenmark and which has officesin Hong-Kong.

Development. Theconcentration that the retailbusiness is undergoing meansthat companies must acquiresufficient size to be able tocompete in a sector in whichvolume greatly determinescompetitiveness.

In this regard, in 1999 MCC’sDistribution Group hasconsolidated its alliance, whichcame into force last year, with itspartners, to run and developsupermarkets together. Moreover,during the year 121 newstores were opened togetherwith 17 travel agency branches.The Distac, Disbor and Aundiachains of stores were also takenover.

Investment was very high, withmaterial and financial investmentto the value of 46,439 millionpesetas, 29% more than in1998.

Worker Participation. Thepolicy of this Group is that,like co-operative members,the workers in its subsidiariesshould be worker-owners. By theend of last year, 90% of ErosmerIbérica’s permanent workerswere members of this jointbusiness project.

The total workforce at the end ofthe year came to 22,324 people,with 2,142 new jobs createdduring the year. 12,267 newjobs have now been created overthe last five years.

An important aspect during theyear was the implementationof a complete environmentalmanagement system covering allprocesses, from the use of rawmaterials to the treatment ofwaste. This has led to the firstenvironmental certification of ahypermarket in Spain.

Constan DacostaMCC Vice-president

Chief Executive - Distribution Group

27

Workforce

1997

13,291

1999

22,324

1998

20,182

InvestmentIn millions of pesetasIn millions of euros

1997

33,079199

1999

46,439279

1998

36,120217

Total SalesIn millions of pesetasIn millions of euros

1997

382,7442,300

1999

595,7613,581

1998

498,2992,995

IEROSKI GROUP

I n 1999 the Eroski Group’salliance with its partnersVegonsa, Mercat and Unide

for the running and developmentof supermarkets was definitivelyconsolidated, with the unificationof the brand image under theConsum name andharmonisation of managementand commercial policy in all thestores.

Constant adaptation continuedto the Group’s main responseto the demands ofcompetitiveness and customerrequirements, Numerousinnovations were made in thedifferent storeformats. In the Eroskihypermarkets, the design of thet e x t i l e ssection was changed, ajewellery section was set up, anew type of wine departmentcreated and art and travelwere also offered inside thestore.

In the Maxi hypermarkets thedomestic appliance section wasrefurbished, improving the useof space and extending therange on show. The fish andbakery sections were renewedand there were improvements inthe general ambience of the storeand in customer information.

In the CONSUM supermarkets,specialisation in fresh producereceived a boost and the useof surveys among customerswas extended. A freshproduce section was alsoadded to Charter self-servicestores. The franchise outletswere equipped with a newcomputer system, enabling themto control the products availableand improve management at the

sales outlet. The range ofConsumer own-brand products,highly regarded by customers,was extended, with new itemsand innovations includingthe Consumer Natur range.The new Consumer Card wasalso given a boost, unifyingunder the same brand twoof the Group’s main marketingelements: the charge card andown brand products. Consumeris today the leading charge cardin the mass-market productsector.

Collaboration with suppliersunderwent new advances inqualitative terms, especiallywith Spanish farmers, with whomagreements were reached forthe distribution of chicken, pork,beef, potatoes, etc. in a year ofbad news for the sector.However, more than 1,000 smallproducers have found in theEroski hypermarkets’ “RegionalProducts Shop” the outlet for theirlocal farmhouse products,

characterised by their excellentquality and high level of customeracceptance.Consumers, who are a priorityin the work of the Group,benefited from a wide rangeof educational activities inwhich 282,000 peopleparticipated. Special mentionshould be made of the workof the Consumer Committeesand the five Consumer Schools,the interactive exhibitions,aimed at encouraging healthyhabits and the organisation ofthe National HousewivesCongress held in San Sebastian,attended by 600 members ofCEACCU. By the end of the year,the Group had 418,000consumer members.

The Consumer magazine, with acirculation of 300,000 copiesa month, continues to be arequired source of referencefor consumers. In the publishingfield, mention should also bemade of two guides published:

DISTRIBUTION GROUP

28

Eroski, Baracaldo.

DISTRIBUTION GROUP

“Santiago from Roncesvalles”and “Almost everything about100 NGOs”.In the environmental area,implementation of the CleanPoints in the hypermarkets forrecycling of materials wasstarted, an energy cogenerationcentre was set up at Quart(Valencia), the use of reusablecontainers became widespreadin the fruit and vegetable sectionsand the Group participated in anumber of EnvironmentalProgrammes promoted by theGovernment. It should also bementioned that the Eroskihypermarket in Pamplonaobtained ISO 14.001environmental certification and

was the first hypermarket to doso. Several other stores are nowalso going through thecertification process.This participation of the workersin the ownership, managementand profits continues to be apowerful way of involving theworkforce in the company and issomething that has a direct effecton service quality and customersatisfaction. This participation isput into effect by the traditionalchannels available to the Eroskiand Consum co-operatives andthe activity of Gespa, which isthe company or generalpartnership that enables theworkers of Erosmer Ibérica totake a holding in their company.

In this context, training continuedto play a key role. 1.5% ofworking time was dedicatedto training, which in absoluteterms was 308,089 hours,7% more than in 1998.

29

TERKOP

T he year was markedby the high level of growth of all the businesses,

with an overall increase of 28%compared to 1998. Theconsolidation of the cateringactivity in the Levant region andthe takeover of the Jangarria S.L.catering company in Navarrastand out. The performance andp r o f i t a b i l i t y

of the company engaged in the

production and sale of rabbitsshould be highlighted, in whatwas its first full year of businesslife.

In the horticultural area, a three-yearexpansion plan was begun, withone of the most importantinvestments in the sector in theBasque Country. The installation of a

new 20,000 m2 greenhouse andthe construction of a sorting,packing and conservationwarehouse, will help to improveprocessed products.In the qualitative sphere, auditswere successfully carried outfor maintaining ISO 9002Quality Assurance certificationfor compound feeds and thecentral kitchens of the cateringactivity. Likewise, the increasingacceptance of the completeservice offered to the healthcaresector should be underlined.This has been boosted bythe increase in the numberof centres using the serviceand ISO certification for thefood service in several localhospitals.

DISTRIBUTION GROUP

30

Behi-Alde.

RESEARCH, TRAINING ANDEDUCATION

31

IIKERLAN

I n 1999, Ikerlan’s 25thanniversary, total incomeaccounted for 1,650 million

pesetas, of which 399 millionpesetas corresponded to genericprojects funded by the BasqueGovernment for the acquisition ofnew technological knowledgeand the remaining 1,251 millionpesetas to contracted projects.

In the Microsystems activity,the initial research team wasset up and co-operation withother centres and bodieswas strengthened, with thecollaboration with the ProvincialCouncil of Gipuzkoa in thepreparation of a plan of action inmicrotechnologies standing out.In the area of energy, acollaboration agreement was

signed with the CidetecFoundation in San Sebastian, forresearch in the field of polymermembrane fuel cells. A co-operation project was alsoinitiated with the LawrenceBerkely National Laboratory inthe United States, to developmetal oxide fuel cells.

Ikerlan also participated activelyin the drawing up of the SpanishGovernment’s National Plan forScientific Research, Developmentand Technological Innovationand in establishing MCC’sScience and Technology Plan.The centre is also taking part inthe European Union’s V R&DFramework Programme, withthree new projects having beenapproved.

In its 25 years of life, Ikerlan hasacquired a high capacity for

product development coveringthe complete cycle, from theoriginal design to the productionof an industrial prototype and,if appropriate, preliminary runs.149 researchers and technicians,in addition to 39 scholarshipholders, work in its two centres inMondragón (Mechatronics) andMiñano (Energy).

RESEARCH, TRAINING AND EDUCATION

32

Ikerlan, Mondragón.

M

I

RESEARCH, TRAINING AND EDUCATION

IDEKO

I n 1999, Ideko boostedintegration with its MachineTool customers to make

product development andinnovation more dynamic. Anoverall approach wase s t a b l i s h e dcovering: initial watchdog tasks,both in terms of technologicalreferences and the leadingcompetition in the world; designand calculation tasks; validationand testing of new prototypes,including experimentation withnew machining processes.

This activity has been carriedout with joint working teams,made up of Ideko researchersand company personnel, withincreasing collaboration withEuropean research centres andfinal customers in the automotive,aeronautics and capital goodssectors.

Work also continued on appliedresearch projects, with nineinternational projects inpartnership with centres fromseveral other countries. Threen e wprojects led by Ideko were alsoapproved as part of theV European Union FrameworkProgramme.

The centre is also stronglycommitted to Internettechnologies, which are goingto facilitate relations betweenIdeko’s project teams andcustomers and suppliers. Ideko’stotal income came to 558million pesetas. 64%corresponded to projects forcompanies and the rest tomedium- and long-term researchprojects.

MAIER TECHNOLOGY CENTRE (MTC)

M TC is a TechnologicalCentre specialising inthe research and

development of heat-formedplastic parts and units for theautomotive, domestic applianceand consumer electronics sectors.

It works on the basis of concurentengineering in close collabortionwith its clients. Its activities includedesign processes, simulation,styling, manufacture of injectionmoulds, industrialisation of partsand the researching of newtechnologies applicable to itswork.

In 1999 and in line with thetrend of the previous year,there was another quantitativeleap forward, both in the numberof projects awarded and the

number of new clients and productfamilies. The increase in the numberof Japanese and German customersis worthy of special mention.Income for the year totalled749 million pesetas, with aworkforce of 107 people, mainlymade up of senior engineers andtechnicians. For the year 2000,the prospects for MTC continue tobe good, bearing in mind thedynamic performance of theMaier Group. It is hoped that theworkforce will be increased by afurther 10 people.

33

IMONDRAGON

UNIBERTSITATEA

I n this second academic year(1998-99) as a university,Mondragón Unibertsitatea

(MU) has continued to consoli-date the courses it offers witha Degree in BusinessAdministration and Managementand second level studies inIndustrial Engineering andComputer Engineering.

Likewise, it continued to increasethe number of Masters degreeson offer with a new Masters inthe Prevention of OccupationalHazards and the preparation ofanother two for academic year1999-2000: Masters in BusinessProject Management andMasters in TelecommunicationsSystems. A boost was also givento third level courses. The levelof use of the Basque languagein the University’s coursesshould also be highlighted.More than 60% of the academiccredits available at Mondragón

Unibertsitatea can be taken in theBasque language.

In 1998-99, MU had a total of2,600 students and a workforceof 306, with a budget totalling2,590 million pesetas andinvestment of 283 million pesetas.

On the qualitative side,Mondragon Unibertsitatea hasdrawn up a Strategic Plan forthe next eight years, involvingprofound changes in the conceptof the university itself, in itsmanagement model and in itsrelationship with society andother bodies operating in thefield of knowledge.

This new concept of universityimplies that, in addition tomeeting personal requirements,it must also take into accountsocial requirements, by applyingthe technological revolution ofthe 21st century to theeducation process. Moreover,taking its roots in Basque cultureand society as a starting point,

MU is open to the mostadvanced universal thought andco-operation and exchange ofknowledge with centres, peopleand bodies from all over theworld.

The new design also involvesestablishing a new managementmodel and, in organisationalterms, the strategic centralisationof the rector’s office andjoint bodies, which, withoutdetriment to the autonomyof the Centres making upMondragón Unibertsitatea, willprovide MU with more dynamicand complete organisation.

RESEARCH, TRAINING AND EDUCATION

34

Eskola Politeknikoa, Mondragón.

ID

T

RESEARCH, TRAINING AND EDUCATION

CIM(Centro de Idiomas Mondragón)

T he academic year 1998-99 saw a significantincrease in the number of

students, with a total of 2,100compared to 1,580 in 1998.It was also a good year on theeconomic side, with a 25%increase in turnover.

A new centre managed by CIMwas opened in Vitoria under thebai&by tradename, in whichmore than 300 students arestudying English and Basqueusing this modern, customisedmultimedia system. The decisionwas also taken to open a similarcentre in San Sebastián, which isnow in full operation.

For the first time, CIM wasalso able to offer its studentsand those of MondragónUnibertsitatea, the chance ofsitting the University of CambridgeEnglish exams at CIM’s premises.This possibility was well receivedby students.

POLITEKNIKA IKASTEGIATXORIERRI

D uring the academicyear 1998-99 Txorierrihad 470 students

within the state system. 4,480hours of training were given in36 different courses, in thesphere of occupational and in-service training, with 446people attending.

Several students from the centredid ten weeks of practicaltraining in companies in Austria

and Germany, as part of theHeziketan programme,promoted by Confebask. It alsoparticipated with Alecop in acollaboration project inColombia, by sending fourlecturers who did consultingwork and providedtechnological training forlecturers in centres located in themost depressed areas ofBogotá.

In the area of Total Quality, self-assessment was carried out byapplying the EFQM model.

LEA-ARTIBAI

I In academic year 1998-99,859 students studiedsecondary level, took

part in Training Cycles orstudied Polymer Engineering. In Occupational and In-ServiceTraining, more than 11,000hours were given in differentcourses, to 500 students.

As part of “Agenda 2000-2006”, 30 technological andbusiness development projectswere identified. These werewell received by the institutions

and organisations interested,who agreed to participate intheir funding with an overallcontribution of 1,000 millionpesetas.

On the academic side,significant steps were taken toincorporate Lea-Artibai inMondragón Unibertsitatea, aswell as to create the AzaroFoundation, to promote newbusiness projects.

35

IOTALORA

I n 1999, in the ManagementTraining area, a newMasters course in Company

management was started withthe academic support ofMondragón Unibertsitatea andthe participation of 19 students.An “Innovative ManagementCourse” was also organisedfor managers, consisting of 5seminars lasting 32 hours eachdealing with Innovative Toolsfor Business Management andattended by 86 people.

Two higher level Companymanagement courses were alsoorganised for managers in theDistribution and Business Servicesectors, with the participationof 32 people. The ManagementDevelopment System was alsoapplied to 50 managers, inaccordance with the CorporateManagement Model.

In the field of Co-operativeTraining, two “Ikas” coursescovering Co-operative BusinessManagement were organised,a Social Body DevelopmentSystem “Ordezkari XXI” forGoverning Councils wasdesigned and nine courses forGoverning Council members,four for Social Council membersand another four for newmembers were held.

In Internal Co-operativeCommunication, in addition tothe monthly publication of theT.U. Lankide magazine, twonew editions of the InternalCommunications Forum wereheld, in which the experiences ofLagun-Aro and Urssa wereexplained.

In terms of Co-operativedissemination, work continuedon disseminating our co-

operative experience: close to1 , 0 0 0people from different countriescame to Otalora to learnabout the singularities of theMondragón co-operativemovement in situ.

As for the activities of theSociological Studies unit, theEFQM satisfaction assessmenttool continued to be applied inthe co-operatives. It has now beenapplied to 90% of MCCpersonnel. From the comparativeanalysis, compared to last year,there was an improvement in theoverall level of job satisfaction.

RESEARCH, TRAINING AND EDUCATION

36

37

FINANCIAL STATEMENTS AND TRADING ACCOUNT

ORGANISATIONAL STRUCTURE

COMPANY AND MANAGEMENT BODIES

T

38

MCC’s Balance Sheet at 31.12.99 showed a totalvolume of assets under administration of close totwo billion pesetas, an increase of 109,613 millionpesetas over the year, which is 5.8% in percentageterms.

Balance sheet growth was rather moderatecompared to the previous year, due to theslowdown recorded by the Financial Group, whoseassets remained at practically the same level as atthe end of 1998.

The most outstanding features of each heading ofthe balance sheet of Mondragón Corporación

Cooperativa as at 31.12.99 are detailed below:

Fixed AssetsAt the end of 1999, MCC’s fixed assets totalled380,324 million pesetas, having increased by43,903 million pesetas (13.1%) during the year.

Total investment made during the year accountedfor 86,838 million pesetas, with depreciationsrising to 38,268 million pesetas, which arerespective increases of 23% and 15% comparedto 1998.

T his part of the Annual Report offers an overallview of Mondragón CorporaciónCooperativa, by presenting the Corporation’s

financial statements and trading account at theend of 1999. Likewise, a comparison of these figureswith those for the previous year shows year-on-yeardevelopments.

The information given refers to the integrated

Balance Sheets for the last two years, as well asthe composition of Value Added generated overallwithin the Corporation.

To obtain these integrated statements, balancesreflecting operations between companies have beenoffset, and internal economic movements have beenremoved, in order to delimit the actual situation of MCCas far as its outward appearance is concerned.

HEADING

ASSETSFixed 336,421 17.7 380,324 18.9 43,903 13.1Current 1,564,980 82.3 1,630,690 81.1 65,710 4.2

TOTAL ASSETS 1,901,401 100.0 2,011,014 100.0 109,613 5.8

LIABILITIESEquity 288,220 15.2 334,232 16.6 46,012 16.0Lagun Aro’s Funds 184,844 9.7 218,217 10.9 33,373 18.1External Partners 36,809 1.9 42,835 2.1 6,026 16.4Long term creditors 172,484 9.1 275,338 13.7 102,854 59.6Short term creditors 1,219,044 64.1 1,140,392 56.7 (78,652) (6.5)TOTAL LIABILITIES 1,901,401 100.0 2,011,014 100.0 109,613 5.8

BALANCE SHEET TOTAL (In M Euros) 11,428 100.0 12,087 100.0 659 5.8

Balance Sheet

Balance Sheet of Mondragón Corporación Cooperativa(After Distribution of Net Surplus) (millions of pesetas)

31.12.98

Amount % distr. Amount % distr. Amount % distr.

31.12.99 Annual Variation

MCC Financial Statements and Trading Account as at 31-12-99

Current AssetsThe current assets heading is the largest elementof the net worth of the Corporation and underwentgrowth totalling 65,710 million pesetas (4.2%) in1999.

67% of this figure came from the Industrial Group,and was due to the increase in turnover andalso to the fact that new co-operatives joinedthe Corporation. The items that experiencedmost growth in this Group were Customers andShort-term Investments.

In the Financial Group, which usually recordsthe highest growth in circulating assets, therewere compensatory movements between thegrowth in Caja Laboral’s bank investment andthe cancellation of the government stock thatLagun-Aro acquired by means of short termborrowings. The net increase of this headingin this Group was only 10,822 million pesetascompared to 1998.

EquityBefore going on to comment on this heading,it should be pointed out that, unlike in othereditions of this Annual Report, it was decided tochange the way Lagun Aro’s Funds were dealtwith, by including them as a specific heading onthe MCC balance sheet.

In homogenous terms, MCC’s Equity wasconsiderably strengthened in 1999, registeringan increase of 46,012 million pesetas (16%).This increase was due to the satisfactoryprofitability for the year, together with thedemanding policy for capitalisation of surplus,which is mainly reinvested to self-financedevelopment.

The most significant contribution to theaforementioned increase came from the IndustrialGroup, which increased its consolidated equity by26,037 million pesetas, 57% of the MCC total.This was due to the high level of profitabilityattained and the incorporation of new co-operatives.

At the end of 1999, Equity totalled 334,232 millionpesetas, with 144,055 million corresponding toShare Capital and the remaining 190,177 million toReserves.

Lagun Aro’s FundsLagun Aro’s Funds at tr ibutable to MCC, afterhav ing separa ted the propor t iona l par tcorresponding to members from outside theCorporation, total led 218,217 mil l ion pesetasat 31.12.99. This was an increase of 33,373mil l ion pesetas over the year, as a resul t ofthe capital isat ion quotas and the excel lentreturns obtained

External PartnersThe opening of new channels of expansion forMCC, both on the domestic market and onthe international market, implies a gradualincrease in the par t i c ipa t ion o f ex te rna lpar tners in joint ventures.

The capi ta l ho ld ings o f these ex te rna lpar tners are mainly to be found in companiesinc luded in the conso l ida ted s ta tementso f the indus t r ia l co -opera t ives and thedistr ibution sector, to which should be addedthe propor t ional par t of members of Lagun-Arofrom outside the MCC co-operatives,mentionedabove.

The total for external par tners accounted for42,835 mi l l ion pese tas a t 31.12.99, anincrease of 6,026 mil l ion pesetas (16.4%)over the year.

Long-term liabil it iesThe ba lance o f MCC funding f rom th i rdpar t ies with a period of maturi ty of morethan one year underwent growth of 102,854mil l ion pesetas (59.6%) in 1999, to total275,338 mi l l ion pese tas a t the end o fthe year. 87% of the increase per tains toCaja Laboral term deposi ts, which regainedthe prominent role af ter having been givenway to unit t rusts in 1998.

Lagun-Aro’s Matured Liabil i t ies Reser ve Fundshould also be underl ined in terms of size.This ser ves to meet obligations contractedwi th members rece iv ing capi ta l i sa t ionbenefi ts and at the end of 1999 total led87,048 mil l ion pesetas.

39

40

Short-term liabilitiesTh i s ba lance shee t head ing fe l l by 78,652mi l l ion pese tas (6 .5%) dur ing 1999. Th i swas to ta l l y due to the F inanc ia l Group, andmo re s pe c i f i c a l l y t o L agun A ro , wh i c hrecorded a 108,555 mi l l i on pese ta fa l li n bo r row ings , due t o t he r educ t i on i nbo r r ow i ng f o r s ho r t - t e r m i n v e s tmen tob j e c t i v e s , a l r eady men t i o ned i n t h ecommen t s on Cur ren t Asse t s .

Mention should also be made of the growth inof f -balance sheet savings schemes, mainlyCaja Laboral uni t t rusts, whose balance cameto 372,803 mil l ion pesetas at the end of1999, after recording a 12% fal l due to themove towards tradit ional term deposi ts.

VALUE ADDEDTo comp le te t h i s commen ta r y on MCC’sBa l an ce Shee t , t h e f o l l ow i ng t ab l e i so f fe red in wh ich a compar i son i s made o fthe f inanc ia l s ta temen t s fo r the las t twoyears , a f te r be ing s t ruc tu red on the bas i s o fthe compos i t ion o f Va lue Added.

The overa l l Va lue Added genera ted by MCCin 1999 i n c r ea s ed by 6 .8% t o t o t a l327 ,318 m i l l i o n pe s e t a s . T h i s g r ow t hwas mode ra t ed by t h e l owe r i n t e r e s tr a t e s i n f o r c e i n 1999 , wh i c h mean tt ha t t h e F i nanc i a l G roup r e co rded a7.5% reduc t ion in y ie ld , a l t hough th i s wass ub s equen t l y o f f s e t b y a r educ t i o n i nf inanc ia l expenses .

HEADING

Value Added 306,588 100.0 327,318 100.0 20,730 6.8Personnel cost (140,687) (45.9) (159,969) (48.9) 19,282 13.7

Internal Yield 165,901 54.1 167,349 51.1 1,448 0.9Financial Costs (32,970) (10.7) (27,105) (8.3) (5,865) (17.8)

Cash-Flow 132,931 43.4 140,244 42.8 7,313 5.5Depreciations (33,376) (10.9) (38,268) (11.6) 4,892 14.7

Operating Profit 99,555 32.5 101,976 31.2 2,421 2.4Transfers and other incom (17,192) (5.6) (9,828) (3.0) (7,364) (42.8)Lagun-Aro tech. int. Rate (13,456) (4.4) (15,669) (4.8) 2,213 16.4

Surplus on year 68,907 22.5 76,479 23.4 7,572 11.0

Value added generated by Mondragón Corporación Cooperativa(millions of pesetas)

1998

Amount % distr. Amount % distr. Amount %.

1999 Annual Variation

Surplus (in M Euros) 414 22.5 460 23.4 46 11.0

The biggest par t of this Value Added wasgenerated by the Industr ial Group, whichwith 143,565 mil l ion pesetas accounted for44% of the to ta l . I t was fo l lowed bythe F inanc ia l Group wi th 31%, wi th theremain ing 25% cor responding to theDistr ibution Group.

Personnel Costs rose by 13.7%, due to thecons iderab le c rea t ion o f jobs in MCC.Wages accounted for 48.9% of the Value

Added generated, which was an increase of3 points compared to 1998. This was a resul tof the fal l in income of the Financial Group,where the amount of value added accountedfor by personnel costs rose from 9.7% in1998 to 11.1% in 1999, and theincorpora t ion o f new companies in theIndus t r ia l and Dis t r ibu t ion Groups, whichmeans that the comparison between the twoyears is not total ly homogenous.

41

The downward trend in interest rates in 1998continued in the f i rs t hal f of 1999, withhistoric minimum rates for most of the year,before they star ted to rise again towards theend of the year. This was ref lected in MCC’saccounts, as Financial Costs fel l s ignif icant lyby 17.8% compared with 1998, due to alarge extent to the lower remuneration onsavings administered by the Financial Group.This fal l means that the amount of ValueAdded earmarked for Financial Costs fel l by2.4 points compared to 1998, at 8.3%.

The depreciations recorded by MCC in 1999to ta l led 38,268 mi l l ion pese tas , wi thyear -on -year growth o f 14.7%, which i sexplained by the high level of investment.I t should be highlighted that the Distr ibutionGroup now accoun ts fo r mos t o f thedepreciation (17,651 mil l ion pesetas, 46.1%of the total), fol lowed very closely by theIndustr ial Group (17,540 mil l ion, 45.8% ofthe total).

As an e f fec t o f the behav iour o f cos t s ,a Trading Profi t of 101,976 mil l ion pesetaswas achieved, which was 2.4% higher thanthe f igure achieved in 1998.

Non - t rad ing income cons i s t s main ly o ft rans fe rs to prov i s ions , minor i ty par tnerinterests and other non- trading income, andactuarial adjustments i f required. The f igurefor 1999 came to –9,829 mil l ion pesetas,which was 42.8% lower than the f igure for1998.

Likewise, the trading profi t is reduced bythe application of the technical interest rate toLagun -Aro’s reser ves in order to res ta teac tuar ia l l iab i l i t ies . As a resu l t , theappl icat ion of th is technical in teres t ra temeant a decrease of 15,669 mil l ion pesetasin the profi ts for 1999, which is 16.4% morethan in 1998.

Therefore, the F ina l Surp lus on the yeartotal led 76,479 mil l ion pesetas, which is animprovement of 11% over the f igure recordedin 1998. This represents 23.4% over the ValueAdded generated, which is an increase of 0.9points over the percentage achieved in 1998.

The fol lowing table brief ly summarises howthis Surplus has been distr ibuted, comparedwith 1998.

Company Tax 4,292 6.2 4,707 6.2Education and Coop. Prom. Fund 3,978 5.8 4,667 6.1Interest on Capital Contributions andMonetarised Dividends 7,555 11.0 8,216 10.7Capitalised Profit 53,082 77.0 58,889 77.0

Total Surplus on Year 68,907 100.0 76,479 100.0

HEADING

Distribution of MondragónCorporación Cooperativa Surplus

(in millions of pesetas)

31.12.98

Amount % distr. Amount % distr.

31.12.99

Total Surplus (in M Euros) 414 100.0 460 100.0

The first three headings in the table refer to external payments. The last one covers the significant capitalisation of theremaining Surplus, in the form of co-operative dividends or reserve funds.

42

INDUSTRIAL GROUP

Presidency

General Council

CONGRESS

GENERAL COUNCILSTANDING COMMITEE OF THE CONGRESS

Construction

Components

Automotive

Industrial Equipment

Household Goods

Engineering and Capital Goods

Machine Tools

President: Otaegui, Juan Mª

Vice-president: Salegui, Francisco

Members: Andrés, José LuisAnsoategui, Juan JoséArabaolaza, Juan JoséArrieta, Juan JoséCelaya, AdriánDomaica, RamónEsnal, JokinGantxegi, JavierGarnica, AgustínGaztañaga, J. DomingoHerrera, MiguelLarramendi, José MªMarkaide, AgustínVillaescusa,Emilio

General Secretary: Erdocia, Javier

President: Cancelo, Antonio

Vice-presidents: Aldekoa, José MªCatania, JesúsDacosta, ConstanEcheverría, AntonioGoikoetxea, J.RamónMaiztegui, JesúsOlasolo, José LuisOtaegui, Juan MªOtaño, Iñaki

Officers: Gárate, José IgnacioGoienetxe, Jesús MªHerrasti, Jesús MªLaspiur, Miguel AngelRetegui, JavierUzkudun, Juan Mª

General Secretary: Erdocia, Javier

OrganisationalStructure

Social andManagementBodies

FINANCIALGROUP

DISTRIBUTIONGROUP

Research, Training and Education Centres

43

José Mª Aldekoa Jesús Catania Constan Dacosta Antonio Echeverría

Jesús Maiztegui José Luis Olasolo Iñaki OtañoJuan Mª Uzkudun

José Ignacio Gárate Jesús Mª Goienetxe Jesús Mª Herrasti Miguel Angel Laspiur

Javier Retegui Javier Erdocia

Juan Mª OtaeguiPresident of the

Congress

Antonio CanceloPresident of theGeneral Council

GENERAL COUNCIL

J.Ramón Goikoetxea

45

LIST OF MCC COMPANIES

46

Banking

ARO LEASINGC/ Gran Vía 35-6º48009 Bilbao(Bizkaia)Tel.: 34 944 244 350Fax: 34 944 236 669

Activities:Financial leasingof capital equipment.

CAJA LABORALPº José Mª Arizmendiarrieta s/n20500 Mondragón(Gipuzkoa)Tel.: 34 943 719 500Fax: 34 943 719 778Servicio.de.Atencion.al.Cliente@cajalaboral.eshttp://www.cajalaboral.es

Activities:Bank ing.

Insurance

LAGUN ARO VIDAC/Gran Vía 35-1º48009 Bilbao(Bizkaia)Tel.: 34 944 798 300Fax: 34 944 169 803

Activities:Life Insurance.

SEGUROSLAGUN AROC/Gran Vía 35-1ºTel.: 34 944 798 300Fax: 34 944 169 803

Activities:General Insurance.

Social Welfare

LAGUN AROPº José Mª Arizmendiarrieta s/n20500 Mondragón(Gipuzkoa)Tel.: 34 943 790 100Fax: 34 943 793 531E-mail:lagunaro@sarenet.es

Activities:Social welfare cover for co-operators.

BATZ SISTEMASBº Torrea 32-3448140 Igorre(Bizkaia)Tel.: 34 946 305 000Fax: 34 946 305 020E-mail: Batzscoop@batz.es

Activities:Assemblies,bodywork assembly.Hand brake levers. Jacks.Pedal units. Rear axles.

BATZ DO BRASILAvda. Eurico Ambrog2100 Taubaté SPEstado de Sao Paulo,BrasilTel. 00 55 122 86 1573Fax 00 55 122 86 1553Batz has a50% holding andPromoauto a 40%holding

Activities:Jacks, brake levers, pedalunits.

CIKAUTXOBº Magdalena 2, B48710 Berriatua(Bizkaia)Tel.: 34 946 137 000Fax: 34 946 137 040E-mail:cikautxo@cikautxo.es

Activities:Injection moulded andovermoulded parts.Rubber mixes.

CIKAUTXO CZ.Letni,3867PSC 46801Jablone Nad NisouRepública ChecaTel. 00 42 042 8302224Fax 00 42 042 8302239E-mail:cikautxo@jn.cz

Activities:Rubber parts.

FAGOR EDERLANGaztanadui, 4220540 Eskoriatza(Gipuzkoa)Tel.: 34 943 719 000Fax: 34 943 719 001E-mail:edersa@sarenet.es

Activities:Suspension arms. Knuckles.Mechanism casings. Clutchhousings.Gearbox covers.Discs. Drums. Calipers.Cylinder head coversDifferential gear-boxes.Gearboxes.

FAGOR EDERLANBORJAPol. Barbalanca, s/n50540 Borja ZaragozaTel.: 34 976 869620Fax: 34 976 869642E-mail:a.lazaro@borja.fagorederlan.esFagor Ederlan has a100% holding

Activities:Automotive assemblies.

GALDANPol. Ibarra, s/nAlsasua, NavarraTel.: 34 948 563 675Fagor Ederlan has a50% holding

Activities:Aluminium diecasting.

AUTOMODULOSParque Tecnológico,Ed. 10348170 Zamudio(Bizkaia)Tel.: 34 944 209 370Fax: 34 944 209 369MCC and Ederlanhave a 40% holding

Activities:Complete axles for cars.

FIT AUTOMOCIONBarrio San Juan, s/nApdo. 8020570 Bergara(Gipuzkoa)Tel.: 34 943 769 044Fax: 34 943 769 156MCC Inversiones andFagor Ederlan have a66% holding

Activities:Brake calipers.

FPKBº San Antolín, 1648170 Zamudio(Bizkaia)Tel.: 34 944 523 605Fax: 34 944 522 156E-mail:fpk@fpksa.comMCC Inversiones hasa 50% holding

Activities:Plastic assembly supports.Engine covers. Noiseshields.

LUZURIAGATAFALLATafalla (Navarra)Tel.: 34 948 700 250Fax: 34 948 702 054E-mail:central@vluzuriaga.es

Activities:Cylinder blocks and headsfor engines.

LUZURIAGAUSURBILC/ Txiki-Erdi20170 Usurbil(Gipuzkoa)Tel.: 34 943 370 200Fax: 34 943 365 564

Activities:Brake housings andsuspension arms.

MAIERPol. Ind. Arabieta, s/nApdo. 10348300 Gernika(Bizkaia)Tel.: 34 946 259 200Fax: 34 946 259 219E-mail:maier@sarenet.es

Activities:Plastic injection moulding.Die making. Finishes: chrome-plating,screen-printing, heatengraving, painting, laser,etc.

Financial Group Industrial Group

List of MCC Companies

AUTOMOTIVE

47

MAIER NAVARRAPolígono Ind. Elordi, s/n31979 Iraizotz-Ultzama(Navarra)Tel.: 34 948 309 210Fax: 34 948 309 333E-mail:maier.mgi@sarenet.es

Activities:Plastic injection moulding.

FERROPLASTPolígono “A Granxa”Parcela 2, Rua 136400 Porriño(Pontevedra)Apdo. 601536210 VigoTel.: 34 986 342 020Fax: 34 986 342 999E-mail:ferroplast@asime.esMaier has a 51%holding

Activities:Thermoplastic injectionmoulding.

MAPSACtra. Echauri, 1131160 Orcoyen(Navarra)Apdo. 100231080 PamplonaTel.: 34 948 325 011Fax: 34 948 325 323E-mail:gerencia@mapsa.net

Activities:Manufacture of aluminiumwheel rims.Manufacture of water pumphousings.Low pressure and gravitycast aluminium parts.

PROMOAUTOPortal de Gamarra, 40Apdo. 62801080 VitoriaTel.: 34 945 129 100Fax: 34 945 129 110MCC inversiones hasa 50% holding

Activities:Development of automotiveparts.

CONSONNIBº Trobika, s/n48100 Munguía(Bizkaia) Apdo. 35Tel.: 34 946 156 331Fax: 34 946 156 281E-mail:consonni@consonni-scoop.es

Activities:Heating elements forwashing appliances,water heaters, centralheating equipment,small domestic appliancesand industrial use.

COPRECIAvda. de Alava, 3E-20550 Aretxabaleta(Gipuzkoa)Tel.: 34 943 71 94 99Fax: 34 943 79 23 49E-mail:home@copreci.es

Activities:Taps and thermostats for gasovens and hobs.Electrically operated pumps,timers, pressure switches,thermostats and electroniccontrols for washingmachines and dishwashers.Transformers for microwaveovens. Components for gasheaters. Thermostats forwashing machines,convectors and electricovens.

COPRECI MÉXICOC/Uno, nº 736 Z.I.GuadalajaraJalisco-México 44940Tel.: 52 36 610 6065Fax: 52 36 610 6046E-mail:copreci@infosel.net.mxCopreci has a 75%holding

Activities:Valves for gas barbecuesand taps for domestic gascookers.

ZERCOKomenského 274793 68 Dvorce uBruntáluCzech RepublicTel.: 420 646 74 54 92Fax: 420 646 74 54 95E-mail:ZERCO@zerco.cz

Activities:Manufacture of taps andsafety systems for domesticgas applications.

EIKAEtxebarriaApdo. 20E-48270 Markina(Bizkaia)Tel.: 34 946 167 732Fax: 34 946 167 746E-mail:eika@eika.es

Activities:Shielded heating elements.Electric hotplates. Heatersand touch controls for glassceramic hobs.

EMBEGAPol. Industrial, s/nApdo. 63E-31200 Estella(Navarra)Tel.: 34 948 54 87 00Fax: 34 948 54 87 01E-mail:embega@embega.eshttp://www.embega.com

Activities:Decorative metal trims.Printed gaskets.Membrane switches.

FAGOR ELECTRONICABº San Andres, s/nApdo. 3320500 Mondragón(Gipuzkoa)Tel.: 34 943 71 25 26Fax: 34 943 71 28 93E-mail:rf.sales@fagorlectronica.essc.sales@fagorelectronica.eshttp://www.fagorelectronica.com

Activities:Discrete semiconductors foraxial and SMD surfacemounting. HYPERECTIFIERtechnology. Systems foranalog and digital TVreception: Receivers,Modular, Amplifiers, satellitedishes...Distribution components.Home systems. Electronicsubcontracting: regulationand control circuits for thedomestic appliance andautomotive sectors.

MATZ-ERREKABº de Ibarreta, s/nE-20577 Antzuola(Gipuzkoa)Tel.: 34 943 78 60 09Fax: 34 943 76 63 75E-mail:matzerreka@matzerreka.mcc.eshttp://www.matz-erreka.mcc.es

Activities:Plastic injection.Fixing elements. Automationequipment for doors andshutters.

ORKLICtra. ZaldibiaE-20240 Ordizia(Gipuzkoa)Tel.: 34 943 80 50 30Fax: 34 943 80 51 85E-mail: home@orkli.com

Activities:Safety components,Regulation and Control forcentral heating systems,domestic hot water andfluids. Thermoelectric safetysystems for gas: domesticappliances: electromagneticunits and thermocouples.

TAJOPolígono Ind.Aranguren s/nBº ArraguaE-20180 Oiartzun(Gipuzkoa)Tel.: 34 943 26 00 00Fax: 34 943 49 13 63E-mail:tajo@tajo.mcc.es

Actividad:Plastic injection. Mouldconstruction for plasticinjection.

COMPONENTS CONSTRUCTION

48

List of MCC Companies

Lifts andelevators

ORONAPol. Ind. Lastaola20120 Hernani(Gipuzkoa)Tel.: 34 943 551 400Fax: 34 943 550 047E-mail:o-i.orona@sarenet.es

Activities:Manufacture andinstallation of lifts andescalators. Maintenanceand repair of lifts andescalators. Manufactureand installation of spatialstructures and enclosures.Installation andmaintenance of pedestriandoors.

Structuresand Handling

BIURRARENAPol. BidebitarteDonostia Ibilbidea, 28Apdo. 88720014 Astigarraga(Gipuzkoa)Tel.: 34 943 554 350Fax: 34 943 555 360

Activities:Machinery and AfterSales Service (Publicworks and forestry)Maintenance andindustrial supply.(Maintenance management,marketing of hydraulic andpneumatic material,assembly of structuresand installations).

ECOTÈCNIAAmistat, 23-1º08005 BarcelonaTel.: 34 932 257 600Fax: 34 932 210 939E-mail:ecotecnia@ecotecnia.com

Activities:Design, manufactureand maintenance ofwind-powered generatorsand wind farms.

ROCHMAN48210 Ochandiano(Bizkaia)Tel.: 34 945 450 075Fax: 34 945 450 257E-mail:info@rochman.es

Activities:Rollways. Handlinginstallations.Packaging andwrapping machines.

URSSACampo de los PalaciosApdo. 28401006 Vitoria (Alava)Tel.: 34 945 135 744Fax: 34 945 135 792E-mail:urssa@urssa.eshttp://www.http://www.jet.es/urssa

Activities:Engineering, manufactureof metal structures.

ConstructionWork andMaterials

COVIMARBº LeguinecheApdo. 2048340 Amorebieta(Bizkaia)Tel.: 34 946 730 546Fax: 34 946 734 491

Activities:Work surfaces and funeraryart in marble, graphite andstone. Supply of workedmaterial. Fitting of materialin situ.

ETORKIPol. Ind. Murga, 1601479 Murga-Aiala(Alava)Tel.: 34 945 399 072Fax: 34 945 399 223E-mail:etorki@coverlink.es

Activities:Pine boards and planks.

LANAC/ SantxolopeteguiAuzoa, 2420560 Oñati(Gipuzkoa)Tel.: 34 943 780 111Fax: 34 943 783 222E-mail:info@lana-scoop.eshttp://www.lana-scoop.es

Activities:Formwork boards.Boards for furniture. Three-ply boards. Boards for structural use.

VICONPadre Larroca, 320001 San Sebastian(Gipuzkoa)Tel.: 34 943 270 300Fax: 34 943 273 047Elgeta

(Gipuzkoa)Tel.: 34 943 789 022Fax: 34 943 789 024E-mail:vicon@adegi.es

Activities:Buildings and homes.Industrial premises.

Leisure and sport

DIKARUrarte Kalea, 26Apdo. 193(Pol. Ind. San Lorenzo)20570 Bergara(Gipuzkoa)Tel.: 34 943 765 548Fax: 34 943 760 814E-mail: comercial@dikar.es

Activities:Muzzle-loading weapons.

SHANGHAI DIKARLEISURE ANDSPORTSEQUIPMENTMengjing, Village,Huangdu TownJinding District,ShanghaiP.R. ChinaTel.: 8621 59594169Fax: 8621 59594769

WINGROUPApartado 168Amillaga, 2820570 Bergara(Gipuzkoa)Tel.: 34 943 769 056Fax: 34 943 769 178

Activities:Camping, exerciseequipment and tools.

WINGROUPAMAZONIAAvda. Buriti,5940 ManausAM-BrasilTel. 00 52 92 6154545Fax 00 52 92 6154747

Activities:Sports equipment and tools.

EREDUOla Auzoa, 420250 Legorreta(Gipuzkoa)Tel.: 34 943 806 100Fax: 34 943 806 374E-mail: eredu@eredu.com

Activities:Metal furniture for outdooruse: countryside,beach and garden.Modern furniture forindoor use.

ORBEAPol. Ind. Goitondo48269 Mallabia(Bizkaia)Tel.: 34 943 171 950Fax: 34 943 174 397E-mail:orbea@sarenet.eshttp://www.orbea.mcc.es

Activities:Bicycles.

TechnicalComponents andEquipment

EDERFILPol. Industrial, s/n20250 Legorreta(Gipuzkoa)Tel.: 34 943 806 050Fax: 34 943 806 349E-mail:ederfil@facilnet.es

Activities:Electric conductors.

HERTELLPoligono Industrial, s/n20267 Ikastegieta(Gipuzkoa)Tel.: 34 943 653 240Fax: 34 943 653 332E-mail:hertell@jet.es

Activities:For the agricultural sector:Depressors. Valves.Reducers, accessories.Water pumps andmilking pumps.

IRIZARSan Andrés, 620216 Ormaiztegi(Gipuzkoa)Tel.: 34 943 809 100Fax: 34 943 889 101E-mail: irizar@irizar.comhttp://www.irizar.com

Activities:Luxury long- and medium-distance coach bodywork.

IRIZAR BRASILBotucatu, BrasilTel.: 55 14 8213336Fax: 55 14 8213735Irizar has a 100%holding

Activities:Coach manufacture.

IRIZAR MAGHREBOulja, Km 0.300Sal-e - MoroccoTel.: 212 7 81 01 15Tel.: 212 7 81 01 13Irizar has a 34%holding

Activities:Coach manufacture.

IRIZAR MÉXICOParque Ind. Bernardo QuintanaParcelas 7 al 12-Manzana14Municipio El MarquésQueretaro-MéxicoTel. 00 52 42 382500Fax 00 52 42 215395E-mail:pmendizabal@irizar.com.mxIrizar has a 100%holding

Activities:Coach manufacture.

INDUSTRIALEQUIPMENT

49

TIANJIN IRIZARCOACH218 Hong QiNankai DistrictTianjin (China)Tel.: 86 022 761 3041Fax: 86 022 761 3345Irizar has a 36%holding

Activities:Coach manufacture.

UROLAUrola-Kalea, s/nApdo. 320230 Legazpia(Gipuzkoa)Tel.: 34 943 737 003Fax: 34 943 730 926E-mail:transformado@urola.commaquinaria@urola.comhttp://www.urola.com

Activities:Construction of blowingmachines for themanufacture of hollowthermoplastic bottles.Manufacture of blowingmoulds. Plastic extrusion.Plastic injection moulding.Plastic blowing. Plasticinjection moulding-blowing.

Industrial Services

ALECOPLoramendi, s/n20500 Mondragón(Gipuzkoa)Tel.: 34 943 712 405Fax: 34 943 799 212E-mail:alecop@alecop.eshttp://www.alecop.mcc.es

Activities:Technical educationalequipment. Prefabricatedelectrical installations.

PRODESOUribe Auzoa, 10202500 Mondragón(Gipuzkoa)Tel.: 34 943 712 630Fax: 34 943 711 717E-mail:prodeso@ctv.es

Activities:Education and trainingsystems. Consultancyand technical assistancein education. Teachingmaterial. Technologicalresearch centres.Company creation andinnovation centres.General consultancy.

ALKARGOBº Belako, s/nApdo 10248100 Mungia(Bizkaia)Tel.: 34 946 740 004Fax: 34 946 744 417E-mail:alkargo@alkargo.es

Activities:Distribution transformers.Medium-powertransformers.Autotransformers.Dry encapsulatedtransformers.

COINALDEConcejo, 1001013 Vitoria(Alava)Tel.: 34 945 264 288Fax: 34 945 253 997

Activities:Nails. Wire. Metal mesh.

DANONALITOGRAFIAPol. Ugaldetxo, s/n20180 Oiartzun(Gipuzkoa)Tel.: 34 943 491 250Fax: 34 943 491 660E-mail:danona@euskalnet.net

Activities:Catalogues.Magazines. Books.Posters. Leaflets.Annual Reports.

ELKARLarrondo Beheko EtorbideaEdificio 448180 Loiu(Bizkaia)Tel.: 34 944 536 205Fax: 34 944 535 776E-mail:elkar@elkar.es

Activities:Industrial catalogues.Books. Advertising leaflets.Annual Reports. Magazines.Graphic products in general.

ROTOK INDUSTRIAGRÁFICAEdificio DanonaLitografíaPol. Ugaldetxo, s/n20180 Oiartzun(Gipuzkoa)Tel.: 34 943 491 250Fax: 34 943 491 660E-mail:danona@euskalnet.netMCC Inversiones hasa 37% holding andKeslan, Danona andElkar a 38% holding.

Activities:Rotary press.

OIARSOBº Zikuñaga, 57-FPolígono Ibarluze20128 Hernani(Gipuzkoa)Tel.: 34 943 335 020Fax: 34 943 335 210E-mail:oiarso@oiarso.com

Activities:For the health sector:Infusion equipment.Transfusion equipment.Catheters. Epicraneals.Enteral nutrition. Parentaralnutrition. Accessories and

connectology. Probes.Anaesthesia equipment.Anti AIDS kit.

OSATUTravesía de Padure, s/n48240 Berriz(Bizkaia)Tel.: 34 946 225 371Fax: 34 946 225 391

Activities:For the health sector:Monitors. Single orthree-channelelectrocardiographs.Defibrillators. Ergometers.Spirometers. Ultrasoundscanners.Domestic appliances

DOMUSABº San Esteban, s/n20737 RégilAptdo. 95 - 20730AzpeitiaTel.: 34 943 813 899Fax: 34 943 815 666

Activities:Individual boilers.

EDESACervantes, 4548970 Basauri(Bizkaia)Tel.: 34 944 491 200Fax: 34 944 495 096http://www.edesa.mcc.es

Activities:White goods.

FAGORELECTRODOMESTICOSBº San Andrés, s/nApdo. 4920500 Mondragón(Gipuzkoa)Tel.: 34 943 719 100Fax: 34 943 796 881E-mail:fagorelectrodomesticos@mcc.eshttp://www.fagorelectrodomesticos.mcc.es

Activities:Cookers. Ovens. Extractorfans. Microwave ovens.Air conditioning. Fridgesand freezers. Washingmachines. Dryers.Dishwashers. Water heaters.Boilers. Storage heaters.Kitchen units andkitchenware.

EXTRAELECTROMENAGERAvenue Hassan IIMohammediaBP 179 - MaroccoTel.: 212 3 32 74 12Fax 212 3 32 74 25FagorElectrodomésticoshas a 100% holding

Activities:Manufacture of domesticappliances.

GEYSER GASTECHBº San Juan s/nApdo. 15120570 Bergara(Gipuzkoa)Tel.: 34 943 769 004Fax: 34 943 767 136FagorElectrodomesticoshas a 50% holding

Activities:Gas water heaters.

HOUSEHOLD GOODS

50

MC LEANValentín Gomez, 1511706 HaidoBuenos Aires (Argentina)Tel.: 54 11 4489 8989Fax: 54 11 4489 8988E-mail:mcleanmk@satlink.comFagorElectrodomesticosand MCC Inversioneshave a 50% holding

Activities:Manufacture of domesticappliances.

WROZAMETUl. Zmigrodzka 14351-130 WroclawPoloniaTel. 00 48 71 3244542Fax 00 48 71 3253363E-mail:ramon@wrozamet.plMCC Inversionesand FagorElectrodomesticoshave a 75.96%holding

Activities:Manufacture of domesticappliances.

Furniture

COINMAVitoriabidea 4-Z.I.Ali - Gobeo01010 Vitoria (Alava)Tel.: 34 945 241 616Fax: 34 945 240 637E-mail:coinmacc@sarenet.eshttp://www.sidi.es/coinma

Activities:Wooden office furniture.

DANONAAnardi Area, 2Apdo. 4220730 Azpeitia(Gipuzkoa)Tel.: 34 943 815 900Fax: 34 943 151 481E-mail:danona@danona.comhttp://www.danona.mcc.es

Activities:Veneered and melaminelounge furniture.Veneered and melaminedining room furniture.Veneered and melaminebedroom furniture.Veneered and melaminechildren’s bedroom furniture.Upholstered sofas.

CommercialEquipment

FAGORINDUSTRIALSantxolopetegui, 22Aptdo. 1720560 Oñati (Gipuzkoa)Tel.: 34 943 718 030Fax: 34 943 718 181E-mail:info@fagorindustrial.comhttp://fagorindustrial.com

Activities:300 to 3,000 dishes/hourdishwashers.Glass washers. 7-10-14-25-50kg. washing machines.Ranges. Brat pans.Convection and combisteamers (gas and electric).Fryers. Fry-tops. Commercialrefrigeration.

FAGOFRICtra. Córdoba-Málagakm. 814900 Lucena (Córdoba)Tel.: 34 956 516 179Fax: 34 957 515 621Fagor Industrial havea 51% holding

Activities:Domestic appliances.

KIDEPol. Ind. Gardotza, s/n48710 Barriatua(Bizkaia)Tel.: 34 946 833 510Fax: 34 946 833 133E-mail:kide@kide.com

Activities:Insulated panels and doorsfor coldrooms, cold storesand miniboxes.

Automation andControl

FAGORAUTOMATIONBº San Andrés s/nApdo. 14420500 Mondragón(Gipuzkoa)Tel.: 34 943 799 511Fax: 34 943 791 712E-mail:marketing-info@faborautomation.mcc.eshttp://www.fagorautomation.mcc.es

Activities:Numerical controls.Digital readouts. Linear androtary transducers. Feed andheadstock regulators.Feed and headstock motors.

Engineering andConsultancy

DIARAPol. BasabeEdif. Oficinas EO 13-1420550 Aretxabaleta(Gipuzkoa)Tel.: 34 943 771 015Fax: 34 943 790 587E-mail:diaradis@sarenet.es

Activities:Product design. Packagingdesign. Graphic design,corporate image.

ENYCAAvda. La Cerrada, 3739600 Maliaño(Cantabria)Tel.: 34 942 261 096Fax: 34 942 260 506E-mail:enyca@enyca.eshttp://www.enyca.esThe Engineering andConsultancySubgroup has a66.66% holding

Activities:Telecommunicationsengineering.

LKS CDEEGeneral Arrando,40-3º28010 MadridTel.: 34 913 191 299Fax: 34 913 198 102E-mail:lks@lksconsultoria.comAIC, LKS, S.Coop andLKS Ingeniería havea 64% holding

LKS CONSULTORIAPº José Mª Arizmendiarrieta, 520500 Mondragón(Gipuzkoa)Tel.: 34 943 770 335Fax: 34 943 771 012E-mail:lksmondr@lks.es

Activities:Consulting:Management Advice.Specific solutions.Training in Strategy,Quality and Continuousimprovement, Marketing,Organisation andHuman resources,Industrial Engineeringand logistics, Economic-Financial matters.Account auditing.

LKS INGENIERIAPº José Mª Arizmendiarrieta, 520500 Mondragón(Gipuzkoa)Tel.: 34 943 770 335Fax: 34 943 793 878E-mail:lks.ingenieria@mcc.eshttp://www.lks.ingieneria.mcc.es

Activities:Consulting in engineering.Property valuations.Civil Engineering. Building.

LKS INTELCOMPlaza Larrín, nº120550 Aretxabaleta(Gipuzkoa)Tel.: 34 943 712 451Fax: 34 943 712 351E-mail:intelcom@lksingenieria.esLKS Ingenieria has a70% holding

Activities:Design and implementationof communication networks.

MSIMONDRAGONSISTEMAS DEINFORMACIONAma kandida, 21(Denac)20140 Andoain(Gipuzkoa)Tel.: 34 943 594 400Fax: 34 943 590 536E-mail:arechavaleta@msi.mcc.esandoain@msi.mcc.es

Activities:Computer systems andservices.

List of MCC Companies

ENGINEERING ANDCAPITAL GOODS

51

I3SPlaza del Museo,1-3º48009 BilbaoTel.: 34 944 241 993Fax: 34 944 238 348MSI, MCCInversiones and theEngineering andConsultancySubgroup have a51% holding

Activities:Consultancy and sale ofcomputer services.

ONDOANParque Tecnológico Edif. 101 módulo C48016 Zamudio(Bizkaia)Tel.: 34 944 522 313Fax: 34 944 521 047E-mail:ondoan01@sarenet.esondoan02@sarenet.eshttp://www.egroups.com/group/ondo-news/info.html

Activities:Engineering/Consulting(Environment).Turnkey systems(Environment).

SEILe Forum64116 Bayonne CEDEX(Francia)Tel.: 33 559 580 000Fax: 33 559 580 199E-mail:sei@eureka.archimedia.frMSI has an 85%holding

Activities:Computing and softwaredevelopment.

Metal Forming

AURRENAKVitorialanda 15Ali - Gobeo01010 VitoriaTel.: 34 945 244 850Fax: 34 945 246 912E-mail:ak@aurrenak.com

Activities:Tooling for different ironand aluminium castingtechnologies in theautomotive sector.

BATZTROQUELERIABº Torrea 32 - 3448140 Igorre(Bizkaia)Tel.: 34 94 6315 707Fax: 34 94 6315 566E-mail:bosco.diez@teleline.es

Activities:Die manufacture.

FAGOR ARRASATEBº San Andrés, 20Apdo. 1820500 Mondragón(Gipuzkoa)Tel.: 34 943 719 999Fax: 34 943 799 677E-mail:comercial@fagorarrasate.eshttp://www.fagorarrasate.mcc.es

Activities:Presses and stampingsystems.Strip processing systems.Welded tube and sectionmanufacturing systems.Transfer, progressive andconventional dies.Engineering and consulting.

P.I. PROINAvda. Carlos I, 10-1ºSan SebastiánTel.: 34 943 376 012Fax: 34 943 365 942E-mail:proin@fagorarrasate.esFagor Arrasate hasa 100% holding

Activities:Manufacture ofmachine tools(Sheet metalprocessing systems).

FAGOR SISTEMASPolígono IndustrialBasabe, pab. E.Apdo. 19820550 Aretxabaleta(Gipuzkoa)Tel.: 34 943 712 080Fax: 34 943 712 210E-mail:fagor.sistemas@sarenet.es

Activities:Automatic assemblysystems. Robotics.

CIMA ROBOTIQUEParc d‘activités LesPradinesRoute Nationale 7 - Nord84100 Orange, FranceTel.: 33 49 0111 660Fax: 33 49 0511 878Fagor Sistemas hasa 99% holding

Activities:Automatic assemblysystems. Robotics.

ONA-PRESPol. IndustrialUgaldeguren IIBº San Antolín, s/n48170 Zamudio

(Bizkaia)Tel.: 34 944 523 808Fax: 34 944 523 980E-mail:onapr001@sarenet.es

Activities:Hydraulic presses.

Machine Tools(Cutting)

DANOBATArriaga kalea, 21Apdo. 28E-20870 Elgoibar(Gipuzkoa)Tel.: 34 943 740 250Fax: 34 943 743 138E-mail:izubia@danobat.comhttp://www.danobat.com

Activities:Grinding machines:CNC, cylindrical,exteriors and interiors,flat surfaces,bridge and special forthe aeronautical sector.Lathes: CNC, lathe centres,vertical. Automatichandling.

D+S SISTEMASArriaga Kalea, 1Apdo. 80E-20870 Elgoibar(Gipuzkoa)Tel.: 34 943 748 050Fax: 34 943 743 767E-mail:viniguez@ds-sistemas.comhttp://www.ds-sistemas.com

Activities:Special machinery.Special and transfermachines. Flexiblemachining lines.

ESTARTA RECTIFICADORAC/ Autonomía, 1Apdo. 147E-20870 Elgoibar(Gipuzkoa)Tel.: 34 943 743 705Fax: 34 943 741 758E-mail:estarta@estarta.com

Activities:Construction of centrelessgrinding machines.

GOITIArriaga Kalea 1Apdo. 80E-20870 Elgoibar(Gipuzkoa)Tel.: 34 943 748 323Fax: 34 943 748 144E-mail:j.m.pagaegui@goiti.comhttp://www.goiti.com

Activities:CNC sheet metal punchingmachines.CNC punching machineswith shears included.Laser cutting machines.Automatic press brakesand flexible bendingand punching systems.Punching tools.

LEALDEBarrio Cortazar, s/nApdo. 11I-48288 Ispaster(Bizkaia)Tel.: 34 946 844 004Fax: 34 946 844 130E-mail:lealde@lealde.comhttp://www.lealde.com

Activities:Horizontal CNC lathes.Vertical CNC lathes.

SORALUCEBº OsintxuB-20570 Bergara(Gipuzkoa)Tel.: 34 943 748 050Fax: 34 943 765 128E-mail:soraluce@soraluce.comhttp://www.soraluce.es

Activities:Moving column millingcentres. Fixed bed CNCmilling machines.Machining centres. Radialdrilling machines.

Machinery forWood, Toolingand FixturesDOIKIPol. Ind. Goitondo 548269 Mallabia(Bizkaia)Tel.: 34 943 171 600Fax: 34 943 174 273E-mail:doiki@sarenet.es

Activities:Dimensional verificationtooling. High precisionmechanics. Electronic,pneumatic and mechanicalgauges. Machining fixtures.

MACHINE TOOLS

52

EGURKOBasusta Bidea, 9Apdo. 2520750 Zumaia(Gipuzkoa)Tel.: 34 943 860 100Fax: 34 943 143 107E-mail:egurzu@globalnet.es

Activities:Machinery for wood.Edge veneering machines.Profiling machines.Combined veneering +profiling machines.Sanding machines.

LATZAvda. de los Gudaris,s/nApdo. 5620140 Andoain(Gipuzkoa)Tel.: 34 943 592 512Fax: 34 943 591 391E-mail:mendlatz@sarenet.es

Activities:Standard HSS, HSSCoand solid carbide drills.Special HSS, HSSCoand solid carbide tools.

ORTZAPol. Areta, s/n31620 Huarte-Pamplona(Navarra)Tel.: 34 948 330 438Fax: 34 948 330 002E-mail:ortza@globalnet.es

Activities:Machinery for wood.Equalising and sectioningsaws. Machining centres.

ZUBIOLABº Landeta, s/n20730 Azpeitia(Gipuzkoa)Tel.: 34 943 157 056Fax: 34 943 150 026E-mail:zubiola@sarenet.es

Actividad:Tools for wood: HSS drills.MD drills. HSS millingcutters. MD milling cutters.Discs. Cutter heads.Window units. Cutters.

Distribution

CONSUMAvda. de Espioca, s/n46400 Silla (Valencia)Tel.: 34 961 974 050Fax: 34 961 974 092E-mail:consum@servicom.es

Activities:Retailing of consumerproducts in small and largestores: Fruit and vegetables,meat and cold meats, fish,dairy products, groceries,drinks, frozen food,cleaning materials andhousehold goods, textiles,domestic appliances,leisure articles,do-it-yourself, sound andvision, kitchenware.

EREIN COMERCIALPol. Ibur Erreka, s/nApdo. 24220600 Eibar (Gipuzkoa)Tel.: 34 943 208 544Fax: 34 943 208 634ix10203@express.es

Activities:Marketing of food productsto the catering trade andcollectives.

EROSKIBº San Agustín, s/n48230 Elorrio (Bizkaia)Tel.: 34 946 211 211Fax: 34 946 211 222E-mail:grupoeroski@mcc.eshttp://www.eroski.es

Activities:Retailing in small and largestores: Fruit and vegetables,meat and cold meats, fish,dairy products, groceries,drinks, frozen food,sundries and cleaningmaterials, textiles,domestic appliances,leisure articles,do-it-yourself, sound andvision, kitchenware,travel and petrol.

ERAMARESTAURACIÓNCentro ComercialGarbera, local 6820015 Donostia(Gipuzkoa)Tel.: 34 943 394899Fax: 34 943 401388E-mail:erama.ss@bezeroak.euskaltel.esEroski has a 50%holding andAuzo-Lagun has a50% holding

Activities:Catering.

FORUM SPORTBº Kortederra, s/n48340 Amorebieta(Bizkaia)Tel.: 34 946 300 094Fax: 34 946 300760E-mail:f0073@forumsport.esThe Eroski Grouphas a 52% holding

Activities:Shopping and SportsCentres.

EROSMERBº San Agustín, s/n48230 Elorrio (Bizkaia)Tel.: 34 946 211 211Fax: 34 946 211 22278,07% holding

Activities:Retailing of consumerproducts in large stores.

List of MCC Companies

Distribution Group

53

Agricultural-food

AUZO-LAGUNUribarri Auzoa, 1320500 Mondragón(Gipuzkoa)Tel.: 34 943 794 611Fax: 34 943 794 366E-mail:auzolagun@logiccontrol.es

Activities:Catering. Cooked dishes.Cleaning of buildings andpremises.Complete service for thehealth care sector.

COMISLAGUNPadre León, 9Alaquas- ValenciaTel.: 34 961 988 016Fax: 34 961 515 907E-mail:comislagun@nexo.esAuzo-Lagun has a73.4% holding

Activities:Catering for groups.Complete service forhealth care sector.

JANGARRIAKatuarri, 20Ansoain- NavarraTel.: 34 948 140 192Fax: 34 948 131 892Auzo-Lagun has a100% holding

Activities:Catering for groups.Complete service forhealth care sector.

BARRENETXEOkerra, 748270 Markina (Bizkaia)Tel.: 34 946 168 143Explot. Berriatua:Tel.: 34 946 139 157Explot. Etxeberria:Tel.: 34 946 166 173E-mail:barrentxe@logiccontrol.es

Activities:Horticulture in greenhousesand the open air.

BEHI-ALDEOlaeta-Aramaiona(Alava)Apdo. 44 (Mondragón)Tel.: 34 945 450 100Granja: 34 945 450 100

Activities:Milk. Livestock for breedingand meat.

MIBACtra. Etxebarria, s/n48270 Markina(Vizcaya)Tel.: 34 946 167 884Fax: 34 946 167 886Olaeta-Aramaiona(Alava)Granja:34 945 450 259

Activities:Compound feeds. Smallagricultural machinery.Fertilisers and seeds.Phytosanitary products.Veterinary service.

UNEKELBarriada de Berrio, s/n48230 Elorrio (Bizkaia)Tel.: 34 946 167 884Fax: 34 946 167 886

Activities:Breeding of rabbits.

ResearchCentres

IDEKOArriaga kalea, 2Apdo. 8020870 Elgoibar(Gipuzkoa)Tel.: 34 943 748 000Fax: 34 943 743 804E-mail:alusoz@ideko.eshttp://www.ideko.es

Activities:Development of andinnovation in machine toolsand systems. Productdevelopment. Improvementof production processes.Technical support.Technology monitoring.

IKERLANJosé María Arizmendiarrieta, 2Apdo. 14620500 Mondragón(Gipuzkoa)Tel.: 34 943 771 200Fax: 34 943 796 944E-mail:webmaster@ikerlan.eshttp://www.ikerlan.es

Activities:Contracted R&D projectsfor the development of newproducts or for theimprovement of productionprocesses.Mechatronics: electronicsand technical design andproduction systems.Energy: rational use ofenergy, renewable energy.

MTCMAIER TECHNOLOGYCENTREPol. Ind. Arabieta48300 Gernika(Bizkaia)Tel.: 34 946 259 265Fax: 34 946 259 258E-mail:mtc@sarenet.es

Activities:Research and developmentin automotive assembliesand components made withthermoplastics. Developmentof new technologies.

Education andTraining Centres

CIM (AHIZKE)Avenida de Alava, 420500 Mondragón(Gipuzkoa)Tel.: 34 943 712 055Fax: 34 943 712 181http://www.cim-idiomas.com

Activities:Language training.Translation and interpretingservice.

ETEOESCUELA UNIVERSITARIAESTUDIOS EMPRESARIALESLarraña, 3320560 Oñate(Gipuzkoa)Tel.: 34 943 781 311E-mail:eteo0001@sarenet.es

Activities:Training in businessadministration.

IRAKASLE ESKOLA20540 Eskoriatza(Gipuzkoa)Tel.: 34 943 714 157Fax: 34 943 714 032E-mail:ie@jet.es

Activities:University Teacher TrainingCollege.

LEA-ARTIBAIAvda. Jemein, 1948270 Markina(Bizkaia)Tel.: 34 946 167 552Fax: 34 946 166 674http://www.leartik.com

Activities:Technical education.

MONDRAGONESKOLAPOLITEKNIKOAC/Loramendi, 420500 Mondragón(Gipuzkoa)Tel.: 34 943 794 700Fax: 34 943 791 536E-mail: eskola@mep.es

Activities:Technical education.

MONDRAGONUNIBERTSITATEAC/Loramendi, 420500 Mondragón(Gipuzkoa)Tel.: 34 943 794 700Fax: 34 943 791 536E-mail: ilacunza@mep.es

Activities:University education.

OTALORAPalacio OTALORABarrio Aozaraza s/n20550 Aretxabaleta(Gipuzkoa)Tel.: 34 943 712 406Fax: 34 943 712 338E-mail:gletona@otalora.mcc.es

Activities:Co-operative and businesstraining.

SUPPORT BODIES AND

INTERNATIONAL SERVICES

RESEARCH,

EDUCATION AND

TRAINING CENTRES

Mondragón, 25 May 2000