Interview with José Javier Armendáriz
(President of SODENA and Regional Minister of Industry and Technologies, Comercio and Trabajo)

December 2003

“SODENA offers new projects and services for Navarre”

“Clearly reducing the present distance between the industrial and service sectors in the development of new of leisure, culture and tourism opportunities“ is one of the main concerns of SODENA in this legislature, according to its President and Regional Minister of Industry and Technology, José Javier Armendáriz.
In his first official declaration as President of SODENA he also highlighted the priorities of the Government of Navarre in the development of telecommunications and renewables, but not forgetting women's' employment and the need to consolidate the present industrial fabric.

What are SODENA's objectives in this legislature?
SODENA's Strategic Plan approved just over a year ago points out the mission of this publicly owned company of the Government of Navarre: to drive and develop business projects for the region, both at local level and from abroad. SODENA has been working in this direction to make an active and major contribution to the balanced and sustainable development of Navarre.

You have been a board member of SODENA since 1996. Now, as President, you find yourself with a defined strategic plan. Do you share its conclusions and objectives?
Completely. Especially after having analysed and reflected on its opportune nature, scope, and action plans. In particular, because SODENA is an instrument that has always taken into account the general interests of Navarre since its creation in 1984. Obviously, its priorities will vary according to the economic situation, market and company conditions, social reality, etc.
How and where SODENA needs to go is always decided at Board level, and the Board can always count on the presence of independent advisers with proven experience.

Among these priorities until the end of this legislature in 2007, what would you highlight?
That industry, services and the economy in general are in continuous evolution. Growth forecasts for 2003, both in Spain and in the European Union, have been adjusted two or three times because the world and the markets are moving at great speed. The Government of Navarre, all its Departments, and (consequently) SODENA, know what the general vision is (to contribute to the balanced and sustainable development of the region). The Strategic Plan specifies actions and projects. Our work consists of bringing them to fruition: the more the better, and with the best possible results.

Yes, but it is still very much a plan of good intentions ...…
On the contrary. SODENA's intervention is calculated very closely, and both the management and the Board of Directors are kept up to date on the level and progress of each project. As a result, and on the basis of certain factors and results, those generally applied nowadays in companies. The employees of SODENA, for example, negotiate their salaries. What should be taken into account, however, is the fact that the profitability of projects is not the only objective of the Government of Navarre and SODENA. The most important consideration is their strategic viability (in fiscal, social, financial terms, etc.).

What is your main concern or interest for the next few year as President of SODENA?
To clearly reduce the present distance between the industrial and service sectors. Navarre continues to grow above the average for Spain, and at an admirable rate if we consider the situation that certain countries and markets have been suffering since late 2002. Navarre-based companies and their workforces are performing very well, but the Navarre of the 21st Century requires more (and better) quality services, new options in the fields of leisure, culture and tourism, and an even greater effort in the telecommunications sector.

Does SODENA have sufficient resources to support all the projects?
Almost all SODENA's investments are limited over time and also in terms of its shareholding. We never hold a majority shareholding in companies, and companies now have sufficient resources to take on projects that could be in the interest of Navarre.
I would point out that SODENA has invested 46.1 million euros of venture capital in 66 operations since its creation in 1984. It still participates in 20 company projects today. In total, the investments made by SODENA, plus the loans and warranty granted, total over 162.5 million euros. Its operations have an effect on a total of 5,300 workers.

The latest disinvestments (Gamesa, Cinfa) mean that SODENA can enter new projects. Could you specify the next ones?
Leisure and telecommunications are our main priorities. SODENA expects that certain investments will be made before the summer of 2004. The new projects are related to additional services for the Nature Park and the surrounding area, the creation of a combined fund for tourist infrastructures and development, or support for the installation of cable TV/Internet and the development of the Information Society.
The tender for the future Automotive Centre-Museum may also be convened in the near future. It will be built in Pamplona and will have over one hundred vehicles and motorbikes, together with component manufacturers and interactive devices that will be great novelty of this new leisure and cultural infrastructure.
In addition to this initiative, SODENA will allocate considerable resources to improving and consolidating the industrial fabric, which we should take great care of. The work done in the renewables sector have placed Navarre in a position of leadership, one that we are going to maintain.

Have your left employment aside?
No, no way. Although we have the lowest unemployment rate in Spain, SODENA works hard to create employment, but not any type of employment. Nor does it support any type of business project. Female employment, with higher levels of unemployment, is a special priority for use, although we are also concerned about the training of immigrant workers and their insertion into the world of work.

It is increasingly difficult to create companies and consolidate projects and products ……
A company is not built in a day and a quality product does not sell itself, however good it is. There is no companies without an entrepreneur behind it, but neither are there companies without products or services, without knowledge, without innovation, without sufficient financing. We should accept and understand the risks, the failure of a project, the difficulties of a company, etc, but it is very unlikely that a good idea or project and a good entrepreneur will miss out on opportunities in the market. SODENA is there precisely to help in the business development of the region, to take part in projects that are considered beneficial for Navarre, in cooperation with other public, business, economic and social agents.