The historic automotive tube factory MMM closes after failing to overcome the bankruptcy process. PXI Automotive Spain buys the productive unit, ensuring job continuity for some employees.
The Manufacturing Modern Metals (MMM) plant in Molins de Rei has closed its doors after being unable to overcome the bankruptcy process, ending more than eighty years of history in the automotive sector. The decision comes after the company attempted to restructure its debt and carry out an agreement that would allow it to continue operating. However, economic difficulties persisted and led to the definitive liquidation of the business.PXI Automotive Spain, a subsidiary of the Chinese group PXI Auto Components, has acquired the productive unit, which has allowed for the preservation of 14 jobs in the administrative area. Lawyer Jordi Albiol, the bankruptcy administrator appointed by the commercial court 2 of Barcelona, commented: “The Chinese group has decided to retain part of the workforce while production is reorganised.”
MMM was founded by the Priu family and specialised in the manufacture of tubes for automobiles, producing essential components for brands such as Nissan, BMW, and Volkswagen. At its peak, it employed approximately 180 employees in Molins de Rei and over 600 globally. However, factors such as an aggressive investment policy and an unfavourable economic environment – including the collateral effects of the war in Ukraine – led to a financial crisis that culminated in the filing for bankruptcy.
In 2023, MMM had managed to refinance part of its debt through an agreement that involved an unusual 40% participation from Cofides. Despite efforts to reduce its liabilities to 30 million, it was unable to meet the agreed terms and had to file for bankruptcy again this year.
The liquidation affects not only Molins de Rei; the sale of its factory in Mexico is also pending. Francisco Lacasa, lawyer representing the MMM group, indicated: “We are working to transfer that productive unit to another manufacturer.”
On the other hand, PXI Automotive Spain already has a presence in Catalonia thanks to its plant located in Torelló. With this acquisition, it hopes to increase its production capacity by integrating the know-how acquired along with the Romanian facilities from the agreement with MMM.
This closure marks a significant milestone in the local automotive sector and raises questions about the future employment for the workers affected by this situation. The dismissed employees will have access to government programs aimed at facilitating their reintegration into the workforce while it is expected that operations will continue under new management.
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