Galvexsa: On a trajectory of growth

In 2006, Jesús and Eduardo made the leap from what they called “a very good PowerPoint presentation” to a full-blown brick and mortar galvanisation factory. The timing could have been better, with the onset of the financial crisis putting them under a lot of pressure, but by 2017, the company was on solid footing and pushing ahead on a growth trajectory.

Galvanisation is a process that is fundamental for many industries. It is the process of applying a layer of zinc coating to steel or iron in order to protect against rusting. This is key in a wide range of applications, from the rail industry or transportation, telecommunications, construction or agriculture. Any steel or iron exposed to water will need to be galvanised.

Looking back at the company’s development and in particular the first steps, makes Jesús uneasy: “it’s almost scary to think about the beginning. Somehow, we managed to keep moving forward. We had to adapt to the circumstances - we searched for new opportunities, new products, new clients...” They key to their success? A great partnership.

“My father told me that, to set up your own business, you need a maximum of two people and preferably an odd number,” he continues. However, Jesús found an excellent balance with his co-founder, Eduardo: “I think in euros. He thinks in tonnes. I’m an economist and he is an engineer. Both sides of the coin are vital to manage a business. It’s a team that works well. You need this double vision. You can’t really do without either side.”

Since 2016, the company is on a growth trajectory. “Growth is great, but you have to be very careful and proceed slowly. As production increases, you need to spend more and more on buying raw materials. That creates cashflow problems: We pay for our raw materials within 25 days, but getting paid for our finished products could take up to 80 days” explains Jesús. In order to finance this growth, Galvexsa received an EU-guaranteed loan and credit-line through Liberbank, backed by the EIF.

This support not only facilitated the company’s growth by bridging the cashflow gap, but also enabled Galvexsa to improve the surface of its factory and install LED lighting across the building, thus increasing its energy-efficiency. “As a result of this growth, we’ve been able to hire one more person and we will be taking on three more in the course of the summer,” Jesús adds.

Company: Galvexsa (Spain)

Type of business: manufacturing

EIF financing: SME Initiative Spain

Financial intermediary: Liberbank (Banca Empresas Extremadura)

For further information about EIF intermediaries in Spain, please refer to: http://www.eif.org/what_we_do/where/es/index.htm