Spanish firms strengthen footprint, show confidence in China

GUANGZHOU - Earlier this year, Spanish tech company Denodo Technologies held its annual meeting in China for the first time, gathering over 700 employees from around the world in Guangzhou, capital of South China's Guangdong province, with more than 95 percent of them visiting China for the first time.

The country's efficient customs procedures, urban development and convenient lifestyle made a deep impression on the attendees.

"The level of internationalization in Chinese cities is astonishing. Here, there is both deep commercial heritage and vibrant innovation, which has further strengthened our resolve to invest in China," said Angel Vina, founder and CEO of Denodo Technologies.

As China accelerates its opening-up efforts and deepens economic ties with Spain, an increasing number of Spanish companies are expanding their presence in China, with many making significant investments across various sectors, highlighting their long-term confidence in the Chinese market.

The city of Foshan, Guangdong province, has a long history of making ceramics and has been a key pottery production hub in the region since the Tang and Song dynasties (618-1279). In 1998, Spanish bathroom brand Roca Group established its first sanitary ceramics production base in Foshan, and has gradually built a nationwide production network.

The company now operates three major manufacturing bases in the country, which are located in Foshan, East China's Suzhou and Tangshan in North China, featuring a production line that covers a range of products including sanitary ceramics, smart toilets, faucets, bathtubs and bathroom accessories.

Currently, China is actively pursuing the renovation of old residential areas, which is injecting fresh momentum into the ceramics industry. "The growing demand among Chinese consumers for healthy home environments and smart bathroom products is expected to offer new opportunities. We remain confident in China's long-term economic resilience," said Xavier Torras, communications, marketing and design director of Roca Group.

Meanwhile, Lucta Group from Spain, a leader in feed flavoring agents, has been entrenched in the Chinese market for over 20 years. In 2023, it invested 50 million yuan ($6.93 million) in the construction of a new factory in the city of Zhaoqing in Guangdong, focusing on the production of food flavoring. This factory started production in the second half of 2024. It marked Lucta's second major investment in China, having established a wholly-owned subsidiary in Guangzhou in 1998.

"Given China's large population and the growing sophistication of its food industry, the market holds enormous growth potential. We aim for double-digit growth annually and plan to double our business within the next five years," said Fiona Hu, marketing communication manager of Lucta (Guangzhou) Flavours Co Ltd. Notably, the Zhaoqing factory is expected to generate an output value of 70 to 80 million yuan this year.

The Guangdong-Hong Kong-Macao Greater Bay Area has long been a hot spot for Spanish investment in China. Javier Tora, president of the Spanish Chamber of Commerce in China (South China), noted that there are approximately 100 member companies in this region, making up about one-third of its total membership in China, with most located in the Greater Bay Area cities.

Tora added that despite the current global economic landscape, most Spanish companies continue to stand firm in the Chinese market. Through digital transformation, industrial chain integration and the export of cultural values, they are gaining new competitive advantages. His own company, a handbag manufacturer, operates a 15,000-square-meter factory in Guangzhou's Huadu district and plans to invest an additional $2 million this year to expand production capacity.

At the same time, as China optimizes its business environment and further expands high-standard opening up, Spanish tech firms like Denodo are showing increasing confidence in the Chinese market.

In 2019, Denodo established its Greater China headquarters in Beijing, embarking on a rapid expansion path. In recent years, in addition to forming a strategic partnership with BAIC Group to help build a unified data platform, Denodo has set up a data management innovation lab in Southwest China's Chongqing municipality, to promote the establishment of a data compliance system for Chinese new energy vehicle companies that are going global.

"The digitalization process in China has far exceeded expectations," said Bill He, general manager of Denodo software. "The depth of understanding and efficiency of Chinese policymakers regarding digital technologies has drawn global attention."

Founded in 1999, Denodo specializes in real-time databases and data integration, and is a leading player in the data management technology field. The company currently operates R&D centers in Spain, the United States and India.

Acting on its positive outlook for the Chinese market, Denodo is planning to establish its fourth global R&D center in China. "China has the world's most complete industrial chain and the most dynamic innovation ecosystem, with a large number of industry-leading companies," said Angel Vina. "In the digital wave, China has become a hub of innovation, and we not only want to participate but also benefit through collaboration."