BEIJING, CHINA — Gestamp, the multinational company specialized in the design, development and manufacture of highly engineered metal components for the automotive industry, reinforces its presence in China by signing a strategic Joint Venture (JV) Agreement.
Gestamp has signed a JV Agreement with Beijing Hainachuan Automotive Parts Co. Ltd. (BHAP), a Chinese company specialized in auto components, which is a subsidiary of Beijing Automotive Industry Group Co., Ltd. (BAIC Group), one of the major automotive companies in China.
BAIC is the fifth largest auto manufacturer in China. They manufacture locally branded automobiles as well as Daimler and Hyundai vehicles via its own JVs with these OEMs. The transaction is subject to approval from the Chinese special commission SASAC, as well as to competition and other government authorities.
The new alliance improves Gestamp’s strategic positioning, in order to support not only Daimler, Hyundai and other non-Chinese brands in the Beijing area, but also BAIC’s own vehicle brands in all of China. Outside of Beijing, Tianjin, and Hebei Province, Gestamp will continue to manufacture auto components to all non-BAIC clients outside of the JV.
BHAP, the components manufacturing subsidiary of BAIC Group, supplies products that include automotive interior & exterior components, electronic control, powertrain and other systems. With forecasted sales of 6.5 billion euros (RMB50 billion) in 2017, it has established over a dozen JVs with world-leading component companies.
• Two new plants added to Gestamp’s footprint in China.
The announcement increases Gestamp’s footprint by the start of operation of its Tianjin plant, previously under construction, and the contribution of a new plant in Beijing from the BAIC Group. Gestamp’s perimeter in China will include a total of 11 production facilities.
The plants will mainly focus on stamping Body-in-White components, including Hot Stamping, the technology in which Gestamp is a global leader, as well as assembled components and Chassis products.
This announcement reinforces Gestamp’s strategy to further strengthen its collaboration with international as well as local OEMs (Original Equipment Manufacturers) in China. The opening of these two new plants underlines Gestamp’s commitment to growth in China, the largest market in the automotive industry.
During 2016 Gestamp´s sales in China totalled 719.6 M€ (5,288 M RMB) with over 4,300 employees. Between 2013 and 2016 Gestamp has invested 282 M€ (2,185 M RMB) into the country.
Mr. Cai Suping, VP of BAIC Group, Chairman of BHAP, explained that BAIC Group will enforce NEV strategy in all areas: “Our JV with Gestamp, a world leading auto parts player, will supplement BHAP’s lightweight technology development, optimize the industrial layout and support BAIC’s NEV strategy”.
“Our cooperation is a new step towards the Beijing-Tianjin-Hebei integration strategy. BHAP will closely collaborate with Gestamp to strengthen the JV’s growth,” Cai Suping informed.
Francisco J. Riberas, Gestamp Executive Chairman, stated: “BHAP is a recognized auto components manufacturer, as part of BAIC Group, we have an ambitious plan to grow in an area with an enormous potential”.
“This alliance adds new commercial projects with existing customers and also strengthens our position with local Chinese brands, which is absolutely in line with the Group’s strategy,” Riberas added.
• R&D center and tooling plant recently opened.
Gestamp recently opened a new R&D center in China with the aim of co-developing on-site together with the China-based clients in order to improve manufacturing processes, products and costs.
Gestamp also announced some months ago the start of its operations in a new tooling factory located in Kunshan, the first plant specialized in dies and tools for the Company in this country. The goal is to accompany Gestamp’s clients in China with its tooling capabilities, in order to reinforce its strategic relationship.
Gestamp is a Spanish multinational specialized in the design, development and manufacture of highly engineered metal components for top vehicle manufacturers. It develops products with an innovative design to produce lighter and safer vehicles, which offer improved energy consumption and a reduced environmental impact. Its products cover the areas of body-in-white, chassis and mechanisms.
The company is present in 21 countries with 104 manufacturing plants and 6 under construction, 13 R&D centers, a workforce of more than 36,000 employees worldwide as of December 2016. Its turnover was €7,549m in 2016. Gestamp is listed on the Spanish stock market under the GEST ticker.
Special to The Union Times