Gestamp, a multinational company specialising in designing, developing, and manufacturing engineered metal components for the automotive industry, has announced that the company continued to work on its Environmental, Social, and Governance (ESG) strategy to promote decarbonisation and strengthen its position ahead of the circular economy opportunity in the automotive sector.
A communication from the company said that it continues with its plan to increase renewable energy supply in all its plants. After its implementation in 2022 in Spain and Portugal, Gestamp has signed an agreement with Cemig, a leading company in the electric power sector in Brazil, so that all its production and R&D centres in the country will fully operate with 100% renewable energy.
The company said that it has acquired a stake in Gescrap Group, a European leader in managing and recycling high-quality scrap metal. Thus, Gestamp will enhance the circularity of its business model, promoting its scrap as a secondary raw material in producing low-emission steel.
Transition To EVs
The company said it continues working to drive the transition towards electric vehicles with its customers, given the strong prospects for the sector. The number of electric vehicles produced in 2023 is expected to reach 16.4 million units (according to IHS as of December 2022), translating into a market share of around 19%.
During this financial year, the company will invest between €200 million and €250 million in strategic projects for electric vehicles in three regions: North America, Europe and Asia. With this investment, Gestamp seeks to strengthen its position as a leader in the transition to electric vehicles.
J Riberas, Executive Chairman, Gestamp, said, “The year ahead is still marked by macro uncertainty; Gestamp continues to focus on growth, especially in new electric vehicle projects, cost control, and financial discipline. The dedication and commitment of our extraordinary team put us in a unique position to reach new milestones and drive sustainable and profitable growth in the coming years.”
Releasing its annual results for CY22, the company said that its revenues grew by 32.5% to reach €10,726 million, with EBITDA growing by 21.2% to €1,210 million and net profit reaching €260 million, above 2019 levels. '
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Glyn Jones | Country Manager & President | Gestamp India