Gestamp has signed a joint venture agreement with Beijing Hainachuan Automotive Parts (BHAP), a subsidiary of Beijing Automotive Industry Group (BAIC Group).
BAIC is the fifth largest auto manufacturer in China manufacturing locally-branded cars as well as Daimler and Hyundai vehicles via its own JVs with 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 positioning 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 Beijing, Tianjin, and Hebei Province, Gestamp will continue to manufacture auto components to all non-BAIC clients outside the JV.
BHAP, the components manufacturing subsidiary of BAIC Group, supplies products which include automotive interior & exterior components, electronic control, powertrain and other systems. With forecasted sales of JPN6.5bn (US$60m) in 2017, it has established more than a dozen JVs with component companies.
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, as well as assembled components and chassis products.
The announcement reinforces Gestamp’s strategy to strengthen its collaboration with international as well as local OEMs in China.
During 2016, Gestamp’s sales in China totalled EUR719.6m with more than 4,300 employees. Between 2013 and 2016 Gestamp has invested EUR282m in the country.
“BHAP is a recognised auto components manufacturer, as part of BAIC Group, we have an ambitious plan to grow in an area with an enormous potential,” said Gestamp executive chairman, Francisco Riberas.
“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.”
Gestamp recently opened a new R&D centre in China with the aim of developing with 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 specialised in dies and tools for the company in the country.