Power Electronics, one of the fastest-growing industrial manufacturers in the Valencian Community in recent years, is considering relocating most of its production from its Llíria (Valencia) factory to Houston, Texas.
The decision will depend on the trade policies implemented by Donald Trump if he returns to the White House.
“If there are tariffs, we will manufacture in the United States as quickly as possible,” stated Lalo Salvo, Vice President of Power Electronics, during his speech at the Energy Revolution congress, organised by the renewable energy association Avaesen in Valencia.
The company currently generates 70% of its business in the US, making it a strategic market for its growth.
A key factor here is that Power Electronics has long been preparing its expansion into the American market.
In 2024, the company acquired 170,000 square metres in northern Houston to build a mega-factory, similar to the one in Llíria, with an investment of €280 million.
The objective is clear: strengthen its presence in its largest market.
“We already have the land. We bought 170,000 square metres, and we are ready for this,” explained Salvo.
Although this investment began before the potential return of Trump, the executive emphasised that the company must prepare for possible shifts in US trade policies.
“What we cannot do is kick someone stronger than us in the shin,” he remarked, referring to the need to adapt to the American market conditions.
One of the key elements influencing Power Electronics’ strategy is the level of protection perceived in each market.
“Over there, we feel much more protected than here, because here we feel completely unprotected, absolutely zero protection,” stated Salvo.
The executive highlighted that while in Europe, 80% of solar investors come from China, in the United States, 90% are from other origins, creating a more favourable environment for the Valencian company.
Additionally, Salvo stressed the need for industrial policies in Europe that allow companies to compete on equal terms with other markets.
“If we get support, jobs in Llíria won’t be at risk. If we don’t, then some will inevitably be lost,” he warned.
Impact on the Valencian Economy
The possible relocation of Power Electronics’ production would have a significant impact on the economy of the Valencian Community.
The company generated over €1.1 billion in revenue in 2023 and employs around 3,000 people, primarily in its home region.
According to figures provided by Salvo, production at the Llíria plant represents 40% of the Valencian Community’s exports to the United States.
The company has experienced exponential growth in the US, with its revenues increasing from €448 million to €772 million in 2023.
During the same period, its profit in the United States surged from €4.6 million to €34.7 million.
Power Electronics and a Clear Strategic Plan
Despite the uncertainty, Power Electronics remains committed to expansion in both markets. Its 2024-2027 strategic plan includes investments of €300 million to expand its capacity in both Spain and the United States.
“I would like to continue manufacturing most of our products in Llíria,” said Salvo. “Being Valencian and Spanish, creating jobs in Spain is more fulfilling for me than generating them in other countries,” he added.
The future of Power Electronics will largely depend on US trade policies and the measures taken by the European Union to protect its industry.
For now, the company remains vigilant and prepared to make strategic decisions that will allow it to continue leading the eMobility sector.
