Gestamp said it had acquired a 33.3% stake in the Gescrap Group.
Gescrap is a multinational company founded in 1994 dedicated to the recycling of metals and total waste management for the industry and is the self described European leader in the management of high-quality scrap.
“We are convinced that this is an important milestone in the company’s history” said Inaki Velasco, CEO of Gescrap, “Gestamp as a strategic partner is going to reinforce our commitment to leadership in new business opportunities in the world of the circular economy and recycling, sectors which are certainly in full growth.”
Gestamp has a circular economy business model that promotes responsible practices in waste treatment. About 98% of its waste is recycled, reused and recovered instead of being deposited in landfills.
“The company understands circularity as one of the basic pillars of its sustainability strategy,” said Ernesto Barcelo, corporate director of ESG, “since it contributes, on the one hand, to the reduction of mineral extraction (mainly iron and aluminum) with a direct impact due to the reduction of emissions in these supply chains and, on the other hand, the optimisation of waste management.”
Gestamp will be able to enhance the circularity of its business model, promoting the use of its scrap as a secondary raw material in the production of low-emission steel.
“Given our position in the automotive sector, it is our responsibility to contribute to the reduction of emissions throughout the supply chain”, said Francisco Riberas, executive president of Gestamp.
“We are very excited to participate in Gescrap, as this will allow us to join a profitable and growing business while reaffirming our competitive position with our clients and advancing our ESG strategy.”