RDP project database
Modernisation and Expansion in the Spanish Textile Industry
Use of EAFRD funding for business creation and development to modernise and expand the production facilities and capacity of a textile factory in a rural area of north-west Spain.
A specialist textile company located in a rural area was aiming to expand the business, but did not want to relocate away from the local workforce. The owner of the business therefore chose to expand the surface area of the existing workshop/factory and to invest in the modernisation of the production facilities. The company is a specialist embroidery business that personalises garments with logos, text and images. It is a very important source of local employment.
The primary objective of the project was to expand and modernise the business by building a new embroidery workshop over two floors in which more modern machinery could be installed alongside administrative offices, a warehouse and a showroom. This was undertaken with a commitment to ensuring that the growth of the business helps to increase jobs and makes a contribution to the economic and social development of the region.
The project involved: a) construction of new workshop and showroom areas; b) installing state-of-the-art computer design systems; c) introducing new technology for embroidery of a wider range of garments and products such as: jackets, t-shirts, parkas, sweaters, caps, shirts, tracksuits, waistcoats, anoraks, hats, sports bags, raincoats etc., and; d) improving its marketing strategy and image based on its geographical location and use of local raw materials.
Results & Benefits
Cutting-edge technology, expert training and a will to succeed have stimulated the growth of the business greatly. This is turn helps to stimulate local development and other local business inititiatives since all of the company’s workers and the majority of raw materials used are sourced from the local area. Overall, this highlights the application of technological innovation to sustaining traditional activities, such as embroidery, in the rural areas of Spain.
The main challenge during the execution of the project was the financial restructuring of the company and the creation of a business plan in order to ensure returns on the investment made. It was essential therefore to also consider marketing of the expanded business. In order to carry out a similar project, it is essential to consider innovation at both technological and commercial levels since these are the two main pillars of business.
Project location and other information
Lugar Campo do Cristo, Goiriz 3, VILALBA, 27840 Lugo
Total project cost (€)
Private contribution (€)
357 969 (71% - with additional 146 212 EUR from public funds)
Paz Carballeira and Javier Celso
+34 670 282930
Languages for contact
At a glance
Final beneficiary type
Non-farm or non-forest entreprises, Other
> €500 000
Theme / Measure:
Rural Quality of Life & Economic Diversification
Rural economic diversification
312. Support for business creation and development
Competitiveness , Marketing, Entrepreneurship