Forty years ago, a new chapter began to unfold in Sagunto as the industrial heart of the region aimed for a brighter future. Volkswagen Sagunto emerged as a symbol of renewal after a long period of economic hardship that followed the shutdown of Altos Hornos del Mediterráneo in 1983. Since that decisive moment, the city has pressed on with determination, turning its geostrategic location into an asset. The port was strengthened, energy infrastructure grew, and logistics remained a central pillar attracting major players to the area. While the 2008 crisis weighed heavily, the city kept moving forward, with Volkswagen playing a pivotal role by 2016, guiding a rebound in local industry and employment.
With an investment reaching 4.5 billion euros, the project aims to create roughly 4,200 direct jobs. This ambitious plan stands as the largest industrial initiative in the Spanish economy in recent times and is framed as the long-awaited settlement of a historic debt with Sagunto, as observed by political and economic analysts across the region.
The population had endured hardship for decades. The IV Integral Steel Plant, which promised more than 20,000 new jobs by the late 1970s, stalled after the first stage, and the closure of AHM in 1983 was felt as a deep wound across the town. The port of Sagunto, once a lifeline for the factory, became the stage for a broader urban revival. This period spurred months of protests, strikes, demonstrations in Valencia and Madrid, and moments of tension along major highways. In the end, political pressure helped secure an investment plan that allowed most workers to relocate and stabilize the region’s economy. Sergio Villalba, general secretary of the CCOO regional union, noted that 1,794 workers out of a 4,000 workforce left the plant as part of the restructuring.
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The influx of aid accelerated the arrival of other industries. Manuel Girona, a former mayor, recalled that early fears were not realized and that Sagunto reacted with resilience, a rarity among European towns facing similar closures.
Yet according to CCOO’s Villalba, diversification did not fully stabilize the regional economy as some industrial reactivations faced subsequent crises. Relocations of companies such as Bosal and ThyssenKrupp Galmed were noted, with Galmed later reactivated. Pilkington looked to the plant’s modernization as a crucial factor of the 2021 agreement.
The push to reopen the port for commercial traffic became a growth engine from 1985 when Sagunto joined the Valencia Port Authority. The decisive expansion in 1999 drew criticism for environmental impact, while cement plants with substantial capacity continued to operate. The announcement of a regasification plant and a nearby combined-cycle power plant triggered protests from local political groups and environmentalists. Since 2006, Sagunto has been a key energy hub, hosting an automobile terminal and maintaining steel traffic while expanding container shipments to regions as far as Canada and the United States.
Cristina Plumed, president of the regional business association, summarized Sagunto’s evolution: the town now hosts a multi-industry base rather than concentrating all activity in one sector, providing better resilience in times of crisis.
The Parc Sagunto project, developed by a mixed company connected to the Generalitat and the state, envisioned a future industrial zone spanning 9.5 million square meters. It was described as Europe’s largest business park, with projections of 25,000 to 30,000 new jobs. In 2007, Parc Sagunt I was inaugurated, but development faced delays that year. While other facilities, including a desalination plant and electrical upgrades, moved forward, progress stalled on the project for a time. It was not until 2015 that an unresolved Parc Sagunt issue prompted a government intervention to settle the matter. A Port Authority agreement helped complete the first phase, and Mercadona opened its megacenter in Sagunto, catalyzing supplier and industry growth. The park soon gained traction; despite the pandemic, inquiries from companies remained strong, though available land remained limited.
Parc Sagunt II was subsequently introduced to ensure space for industrial occupancy and growth. The regional leadership emphasized a long-term strategy to attract manufacturing while also supporting commerce and tourism, with plans to expand housing and public services as part of the city’s broader development.
Looking ahead, the region’s unions stressed that the Volkswagen opportunity is part of a longer trend. The focus remains on expanding housing, enhancing hotel, restaurant, and retail services, and ensuring a skilled workforce with strong connectivity to industrial sites. The city plans to grow with sustainable transport, modern public services, and a steady investment in education and healthcare as the foundation for ongoing prosperity. The leadership affirmed Sagunto’s role as a landmark community shaped by adaptability and reinvention since the 1980s.
Overall, Sagunto continues to chart a course that balances traditional industrial strengths with new opportunities in logistics and energy. The enduring message is that the town’s future rests on diverse, resilient industries and a robust infrastructure that supports growth for residents across the United States and Canada seeking reliable, scalable trade partners and investment opportunities.