The Navarre-based cooperative strengthens its international positioning through a high-value technological project developed together with the Chinese industrial Group Jereh.
Tafalla Iron Foundry is taking on a new industrial milestone with the manufacture of the largest industrial cylinder head ever produced at its facilities — a large-scale component designed for heavy-duty engines.
The project has been developed in collaboration with the Chinese Group Jereh, a global innovation-driven corporation specializing in high-end equipment, engineering, and services for the oil and gas industry, environmental management, new energy, and digital solutions, employing more than 9,000 people and operating in over 70 countries.
This new development reinforces the Navarre-based cooperative’s specialization in the industrial vehicle sector and consolidates its international expansion strategy in a global context shaped by the reconfiguration of supply chains and trade policy.
The project forms part of a strategic repositioning process towards the heavy-duty road transport sector, a segment with high technical demands and strong growth opportunities for the cooperative, particularly in the American and Asian markets. Unlike other industrial applications traditionally associated with the “off-road” segment — Tafalla Iron Foundry’s historical area of expertise — these cylinder heads are designed for truck engines used in long-haul transportation, requiring even higher standards in terms of reliability, precision, and performance.
“We are facing a project that clearly summarizes where we want to go as a company: high added-value products, demanding clients, and a strong international vocation,” explains Miguel Ugalde, Managing Director of Tafalla Iron Foundry. “Manufacturing the largest cylinder head in our history is not only a technical challenge, but also a statement of our capabilities.”
A strategic alliance with an international outlook
The collaboration with Group Jereh also represents an important step in Tafalla Iron Foundry’s international strategy, allowing the Navarre-based cooperative to position itself alongside an industrial partner with a strong global presence and the ability to integrate into international Asian supply chains also linked to the US market.
The Asian company has significant activity in sectors such as energy, oil, gas, and renewables, in addition to carrying out machining, assembly, and export operations for complex industrial components aimed at different international markets, including the United States. In this context, the alliance between the two companies combines Tafalla Iron Foundry’s technical capabilities and foundry specialization with Group Jereh’s international industrial and commercial expertise.
“It is becoming increasingly important to establish stable relationships with industrial partners that provide technological complementarity, development capabilities, and access to international markets,” says Ugalde. “Our collaboration with Jereh fully aligns with this long-term, shared-growth vision.”
A strategic project in a changing global context
Tafalla Iron Foundry’s commitment comes at a time of increasing international complexity, marked by intensifying tariff debates and the need for major economies to diversify suppliers and reduce dependencies in strategic industrial sectors.
In this context, Europe is once again gaining relevance as a reliable industrial partner capable of offering quality, stability, and legal certainty in an increasingly volatile global environment — a trend that Tafalla Iron Foundry has successfully identified and leveraged in its growth plans.
“In recent years, we have seen major manufacturers reviewing their supply chains and seeking alternatives that can provide greater medium- and long-term stability,” notes Ugalde. “In this scenario, European manufacturers are becoming particularly relevant, both for technical reasons and because of the impact of trade policy and tariffs.”
The collaboration with this major group began more than a year ago with the first technical-commercial mission, during which TIF’s engineering and purchasing departments initiated preliminary explorations into these areas of technical cooperation.
The agreement with Group Jereh, headquartered in Yantai, Shandong Province, which is now being made public, continues and formalizes the progress resulting from the technical visit to China last year, as well as the recent institutional and commercial visit that Tafalla Iron Foundry made to the Asian giant during the first quarter of this year — a key initiative within its internationalization strategy. This visit strengthened relationships with top-tier industrial partners, identified new collaboration opportunities, and positioned the cooperative as a competitive supplier in highly demanding international markets, laying the groundwork for strategic agreements such as the one now announced.
Furthermore, without disclosing the identity of its final clients, the cooperative also confirms that it is currently engaged in advanced negotiations with major American and European manufacturers interested in its technical capabilities and expertise in producing complex components for industrial engines.
“Heavy-duty vehicles will continue to play a fundamental role in the economy for many years to come,” says Ugalde. “Our objective is to maintain our position in Europe while also pursuing decisive growth in America by providing advanced technical solutions and reliable manufacturing.”
A cooperative with a global vision and strong local roots
This new project also comes after a period of profound internal transformation for Tafalla Iron Foundry. In June 2023, the company completed its conversion into a cooperative, transferring 100% of ownership rights to its worker-members and consolidating its integration into the Mondragon Corporation as a base cooperative.
This transformation not only meant a new corporate identity, but also reinforced its position as an industrial project with a global presence and strong local roots, built upon the commitment of its worker-members.
Today, the company employs around 800 people and specializes in the manufacture of engine components for automotive, commercial vehicle, and industrial applications. Most of its production is destined for export markets, reflecting a clear international vocation that is now further strengthened through its commitment to the US market and strategic international alliances such as the one developed with Group Jereh.
