Interview with Damaso Quintana, CEO, Cunext

06 Apr Interview with Damaso Quintana, CEO, Cunext

How would you describe the current state of Andalusia’s metal production sector?

Andalusia is home to the Pyrite Belt and the Betic Cordillera, which contain significant copper deposits dating back to Roman times. This has driven the development of a strong non-ferrous metals mining industry, primarily focused on copper, which has been active for decades.

Around this copper mining activity, an auxiliary and transformation industry has emerged. Examples include Atlantic Copper, a subsidiary of an American mining company, and Cunext, where we process mined copper into wires and cables.

The copper sector is currently gaining momentum, driven by the energy transition. Electrification requires efficient energy transmission, primarily through copper or aluminum cables. Copper cables are mainly used for low-voltage applications and microelectronics, while aluminum cables are preferred for medium- and high-voltage transmission.

According to investment banks, global copper demand is expected to double between 2024 and 2040. This rising demand is driving the growth of both the mining and transformation industries, creating unique expansion opportunities that were less evident before the global shift toward decarbonization and renewable energy.

However, geopolitical uncertainties pose a major challenge, creating economic instability that could affect industry growth and stability.

How is Cunext contributing to the transformation of Andalusia’s copper industry in the context of this rising global demand?

Cunext processes both copper and aluminum, with our Córdoba facility alone transforming over 210,000 tons of copper annually. This accounts for approximately 1% of the global copper cable production, which is estimated to be at 23-25 million tons.

In terms of investment, we are making a significant commitment of over €230 million to expand our operations. This investment is focused on incorporating recycled copper into our industrial processes. Currently, 90% of the copper we use is mined, and 10% is recycled. Our goal is to shift this ratio, so that 60% of the copper used will come from recycled sources and 40% will be mined.

This is a major transformation that requires cutting-edge technological and industrial capabilities. Our investment will enable us to manufacture high-quality copper cables that not only meet the highest industry standards but also achieve the lowest carbon footprint in the world.

How have Cunext’s product lines developed into their current offerings?

Cunext’s product portfolio has evolved to meet the growing demands of various industries, particularly the electric machinery sector. This includes applications in both offshore and onshore wind energy, where the company collaborates closely with turbine manufacturers during product development.

Offshore wind turbines, for example, now exceed 15 megawatts. Just 70 of these turbines can generate as much electricity as a nuclear power plant. To support this, the alternators used in these turbines require high-performance materials, especially copper and aluminum, prompting Cunext to adapt its manufacturing processes accordingly.

Additionally, the ongoing energy transition, with a growing reliance on renewable sources, is significantly increasing the need for power grids. In the United States, investment in grid infrastructure over the next five years is expected to surpass that of the past century. As the need to connect distributed generation sources grows, Cunext is continuously enhancing its technologies to meet these evolving demands.

How is Cunext integrating digitalization and automation into its operations to improve efficiency?

At Cunext, digitalization and circularity – whether in scrap materials or renewable energy – are core pillars of our strategy. We continually invest in automating and digitizing our operations. In fact, the company is making significant investments in systems aimed at increasing automation and robotics across our operations.

Our objective is to ensure that any task that can be automated is handled by machines, freeing up our employees to focus on higher-value responsibilities. In Europe, where social and labor structures and regulatory requirements are similar to those in the US, maximizing automation and digitalization is essential for optimizing efficiency across all processes.

What key milestones has Cunext achieved in advancing its sustainability goals?

Sustainability, like digitalization, is a fundamental pillar for Cunext. We approach it from three key perspectives: economic, social and environmental.

Environmentally, we committed four years ago to sourcing all our energy from renewable sources. Starting with self-consumption, we now have over 15 megawatts of solar capacity installed across our plants. With the addition of a new plant, we will require another 55 megawatts, bringing our total to 70 megawatts of self-consumed energy. In Spain and Europe, self-consumption means energy generated and consumed within the same facility, without relying on the grid. This approach not only reduces our carbon footprint but also significantly improves our financial performance, as solar energy is the most cost-effective source available.

In terms of circularity, we are heavily investing in material reuse. As global copper demand rises, recycling becomes increasingly important. With copper mining facing limits and geopolitical challenges, recovering and reusing copper from existing sources, known as “urban mining,” is vital.

Our initiative to replace virgin copper with recycled copper will eliminate over one million tons of CO₂ emissions per year, making a significant impact.

As for electric trucks, we are strong advocates of demonstrating sustainability through action. Three years ago, we took sustainability beyond our own operations by starting a transportation company focused on electric goods transport. With Spain’s largest fleet of electric tractors, we cover routes as long as 700 kilometers, using trucks that can handle up to one megawatt of electric load, recharged in under 30 minutes. As copper is a key component in electric vehicles and charging infrastructure, we are committed to accelerating the shift to electric mobility, which is not only environmentally beneficial but also cost-effective.

By implementing circularity in both mining and energy, we aim to reduce costs, lower carbon emissions and create a more sustainable future.

What is your long-term vision for Cunext, and what key challenges must be addressed to unlock its full potential?

For me, it is all about sustainability – with economic sustainability being the key focus when it comes to our long-term vision. As the CEO and main shareholder of Cunext, my priority is ensuring the company’s long-term success. To achieve this, my team and I need to make the right investment decisions and strategic moves.

One of my biggest concerns is the shifting balance of global economic power. Western economies are losing influence in technology, markets and economic weight, while regions like Asia continue to grow. Europe and the US are falling behind in key areas, and we cannot afford to ignore this reality.

That’s why we must build a strong presence in growing markets, not just in the West but also in the East. My main priority now is defining Cunext’s global footprint for 2030 – determining our product portfolio and strategic market positioning to ensure a solid and sustainable financial foundation, making the company stronger than ever.

What is your biggest dream or goal for Cunext?

My biggest dream this year is launching our new green copper factory. When I close my eyes, I envision this project – a €200 million investment and the many approvals we’ve secured – finally becoming a reality.

Setting up a factory in Europe, like in the US, requires navigating environmental permits, infrastructure approvals and coordinating construction, equipment delivery and installation. The moment I see the first copper cathode roll off the production line, it will be the greatest satisfaction.  This is a truly unique product, not only in Europe but worldwide – the copper with the world’s lowest carbon footprint, made entirely from recycled materials.

By December, we expect to be testing the factory and producing the first units. Our team is working tirelessly, though recent heavy rains in Andalusia set us back three weeks. However, with hard work and a bit of luck, we’re determined to make up for lost time and see our first product by the end of the year.

Why should US investors consider Andalusia as a strategic location for industrial expansion in Europe?

For European companies, the United States is a natural market. We share a similar business mindset and regulatory frameworks, making it an accessible and strategic environment for expansion. Likewise, the US sees Spain – especially Andalusia – as an attractive gateway to Europe.

The US accounts for around 15% of global GDP, making it an essential market for any industrial manufacturer. Our own experience there has been highly successful, thanks to a strong partnership with our American associates. From day one, our joint ventures have been profitable, and we have ambitious investment and expansion plans that reaffirm our long-term commitment.

The US will remain a key market for us, and we are continuously investing to expand our local capabilities. At the same time, American investors entering Spain will find the same advantages we have in the US – reliable partners, skilled professionals and business-friendly environment that is welcoming and not at all hostile. Of course, every market has its nuances, but overall, both regions offer accessible and attractive opportunities for investment.

For those in the US considering investing in Europe – I strongly advise you to look at Andalusia. Unlike northern Italy or Germany, Andalusia hasn’t historically been an industrial hub, but that’s exactly why it presents such a unique opportunity. With its competitive advantages and untapped potential, I believe Andalusia is one of the best places in Europe for forward-thinking companies to invest and grow.