Spanish auto parts maker Gestamp has opened its first wholly-owned plant in India at Chakan, near Pune, dedicating it to Volkswagen supply as it looks to strengthen operations in the country.
Gestamp Automocion Global CEO Francisco Jose Riberas Mera told reporters that the firm aims to achieve revenue of EUR75m (US$92 million) from the facility by 2014, Asia Pulse reported.
This new plant took investment of EUR82.5m and supplies sheet metal, floor and other body parts for VW ‘s new Polo.
“It is important to be close to the companies we supply to fulfill just-in-time requirement,” Mera said.
The new plant represents a key milestone in the Gestamp’s long-term vision of investing in growth markets and aligning manufacturing footprints with the needs of the company’s global customer base, he added.
The firm already operates seven other plants but they are under joint ventures with South Korea’s Sungwoo and India’s ASAL.
The new plant at Chakan will have an annual capacity of 140,000 cars annually.
Gestamp has an Indian turnover of EUR190m and employs 4,500 staff in the country.
The company said that plans are under way to serve the needs of Gestamp’s other global automaker clients, including Mercedes Benz, Fiat , Ford and General Motors , by providing local supply to their India and Asia Pacific facilities.
With the awareness of safety and emission norms increasing in India, the company expects a growing consumer demand for sophisticated vehicle technologies.
“As a result automotive OEM’s in India are now regarding structural system solutions as critical differentiators in their vehicles in an increasingly competitive environment. Our new facility in Chakan is well-positioned to cater to this demand,” Mera said.