Spain and the United States - Real Instituto Elcano

THE SPANISH PLAYERS IN THE UNITED STATES 65
$2.2 billion if this was attained by purchasing shares in the major listed banks.
The same share would have represented an outlay of $196 million in Argentina
or $205 million in Mexico. Both BBVA and Santander acquired banks in
Argentina and Mexico. Apart from Santander and BBVA, the bulk of
investment has come from a group of large oligopolistic and privatized
companies (Telefónica, Repsol and Endesa).
1. Some of the Main Spanish Companies in the United States 2
One of the largest Spanish investments in the United States is Acerinox’s
stainless steel plant in Carroll County, Kentucky. North American Stainless
(NAS) was formed as a partnership in 1990 between Acerinox and the US
company Armco, AMC (now part of AKL Steel). In 1994 Acerinox bought out
all but 5% of Armco’s shares, and since 2001 it is the sole owner of NAS.
Acerinox’s total capital expenditure on NAS exceeds $620 million. Acerinox
has several plants in Spain and in 2002 became the world’s third-largest steel
producer when it acquired 64% of Columbus Stainless in South Africa.
NAS is a successful, low-cost, highly efficient, state-of-the-art plant
for flat-rolled products in the United States. It has more than 1,000 employees.
In 2004 NAS had almost 25% of the stainless hot and cold sheet and strip
market in the United States and 42% of the plate market. The company’s fourth
cold-rolling mill was under construction in 2005.
Another high-tech company is Indra, Spain’s leading information
technologies and defence systems company, which entered the US market in
1994 when it was selected by the US Navy to supply full mission simulators,
radar trainers and test programme sets for the AV-8B+ Harrier combat aircraft.
Since then, this business has earned Indra more than $250 million.
As well as the AV-8B+ Harrier, Indra has won tenders to supply simulators
and test programme sets for other aircraft used by the US Navy (F-14 Tomcat,
F-18 Hornet and the MH-60 Seahawk).
Indra set up a wholly owned subsidiary in Orlando, Florida, in 1998 that
employs more than 60 people and develops, manufactures, supplies and
maintains systems ordered by the US Navy. In 2003, Indra was classified to
compete for the US Navy’s $3 billion aeronautical simulation contract over
five years. Indra also works for leading companies, such as Lockheed Martin
and Boeing.
Another high-tech company is the aircraft manufacturer EADS CASA, the
Spanish arm of EADS, the largest aerospace company in Europe and the
2. Appendix 2 lists many more companies.