Volkswagen moves Sagunt battery gigafactory work to OHLA after contract break with local firms

Volkswagen has terminated its contract with the Valencian construction consortium of Bertolín, Pavasal and Becsa over cost overruns on the internal urbanisation of its battery gigafactory in Sagunt, Spain. The German automaker has awarded the remaining work to OHLA, a firm based in Pamplona and Madrid, to complete the project. The plant, valued at €250 million for the Valencian works which made up about 40 % of the contract, was originally slated to start production on 26 September but is now expected to begin toward the end of the year. Only about 50 workers have been hired so far, far short of the planned 500.

Compounding the delay, Korean contractor K‑Ensol, responsible for the clean‑room facilities, sent a large portion of its workforce back to South Korea, leaving the white‑rooms unfinished. Sources say the relationship between K‑Ensol and PowerCo, Volkswagen’s battery subsidiary, is strained, and the rollout of the white‑rooms has slowed. The setback follows earlier consideration of a Chinese contractor, which was ultimately rejected in favour of the Korean firm.