The door construction industry in Villacanas, flourishing until recently, has been hit hard by the bursting of the Spanish property bubble and the ensuing financial crisis. Factories are closing, and unemployment is spiralling.
At the height of the boom in Spain's housing sector, the little town of Villacanas produced 70% of doors made with Spanish wood. In 2006, the local factories employed 5,600 people.
But since then, the property bubble has burst and the shockwaves of the international financial crisis are beginning to be felt in Villacanas. As a consequence, 1,800 people have been laid off.
“What's going on here is no more, and no less than the consequences of what has happened in a globalised world”, admits Lorenzo Fernandez, a local pensioner. To be able to keep making doors, companies need bank loans. “The banks have cut off the flow of guaranteed short-term loans”, deplores Santiago Garcia-Aranda, the mayor of Villacanas. And local business people fear the worst may be still to come.
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Date created : 2008-10-25