Cas t lón ceramics industry seeks energy transition and policy relief to stay competitive

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Castellón’s ceramics sector remains a central economic engine for the Valencian Community, yet it wrestles with record energy costs that erode competitiveness. The crisis led to 77 ERTE and 5 ERE measures, affecting around 9,000 and 500 workers respectively. Government support followed, with 450 million euros in direct aid and another 500 million in credit lines aimed at sustaining a sector under pressure. Employers through Ascer have pressed for more action, arguing that current relief is not enough to secure long-term stability. (Mediterráneo report, attributed)

Fernando Roig, head of the Pamesa Group, a leading world supplier of ceramic wall and floor tiles, continues to push for stronger policy measures to keep Spain’s tile industry globally competitive. (Mediterráneo report, attributed)

On energy strategy, the group is pursuing alternatives to fossil fuels. The agreement with eCombustible Energy LLC for modular hydrogen research—often called green hydrogen—offers potential solutions to the sector’s energy challenge. Roig indicated that by 2023 his factories would be using modular hydrogen as part of the shift away from gas. (Mediterráneo report, attributed)

The executive stressed ongoing investments in energy research, including a hydrogen pilot project expected to begin this year. He envisions a rapid timeline to replace gas with hydrogen and accelerate the move even within the current year. A 10-megawatt pilot plant is planned to be operational by year-end. (Mediterráneo report, attributed)

Each facility in the group would generate its own energy from hydrogen produced by water electrolysis, powered by a mix of solar, wind, and hydrocarbon energy. The Roig team notes that the energy feeding the network comes from a diversified electricity mix. The collaboration with the American partner aims to deploy hydrogen across the network. (Mediterráneo report, attributed)

The goal is to produce hydrogen from water using electricity, enabling a full replacement of gas. Each factory would produce its own hydrogen, adding energy independence to the production process. (Mediterráneo report, attributed)

Profitability and competitiveness

The push for profitability in the ceramics sector operates on two tracks: advancing research and adopting new energy solutions. Roig points to Italy as a benchmark, where government policy provides strong tax incentives to keep the ceramic industry competitive. He notes that Italy offers substantial relief that makes energy costs more manageable, and he questions what Spain will offer as the sector faces price rises that threaten survival. (Mediterráneo report, attributed)

A “touched” sector

The industry feels neglected when ceramics is a significant portion of national GDP, Roig contends. At 2022 price levels, Castellón tile faces competitiveness challenges, he argues. When comparing to gas-rich nations such as China, Algeria, India, or Italy, Spain’s ceramics could lose ground if energy costs stay high and no relief is provided. He emphasizes that while raw materials and product quality are strong, energy remains a decisive factor. He urges government action to provide tax relief or credits that would ease the burden and help stabilize the sector. (Mediterráneo report, attributed)

Roig underscores the need for swift measures: when gas prices spike, industry profits shrink; the aim is to prevent reductions in production or job losses. He reiterates that the government has the power to grant real economic support through targeted tax measures and credits. He argues that lowering energy costs would restore competitiveness more effectively than new subsidies. (Mediterráneo report, attributed)

The government has announced a crisis relief package targeting gas-intensive industries like ceramics, with a preference for measures that reduce tax burdens when prices normalize. The headline goal is to avoid subsidies and instead ensure that tax obligations reflect current market conditions. (Mediterráneo report, attributed)

“Painful” closures

Roig speaks candidly about measures taken to close nonprofitable units and redistribute resources within the group. He describes a tough period in late 2023, marked by losses despite higher turnover than the previous year. The plan for 2024 centers on preserving jobs and sustaining profitability, while continuing to pursue hydrogen as a long-term energy solution. (Mediterráneo report, attributed)

He also notes that the first round of government aid announced in March proved inadequate, with the company choosing not to accept subsidies that did not solve core issues. The stance remains clear: the group will seek to contribute to its own resilience while advocating for more effective relief. (Mediterráneo report, attributed)

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