Gestamp Automocion S.A. Business Report FY ended Dec. 2013
|(in million EUR)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Rate of change (%)||Factors|
1) Net Sales
-The Company's sales in 2013 increased by 0.6% from the previous year to EUR 5,789 million. Sales increases from new projects in China and the US were offset by the decline in sales in Europe and the negative effect of the depreciation of foreign currencies compared to the euro.
-In 2013, body and chassis component sales accounted for 80.8% of the Company's total revenues, while mechanism product sales represented 12.2% of the Company's revenue.
-The Company's EBITDA decreased by 4.2% to EUR 594 million due to lower than expected sales and the launch of high cost growth projects worldwide.
RestructuringPartial acquisition of business in Americas by Mitsui
-Mitsui & Co., Ltd. announced that it has agreed to take up to 30% equity of the Company's North and South American operations. The Company currently has a total of 17 plants in the US, Mexico, Brazil and Argentina. Upon receiving regulatory approval by relevant authorities in June 2013, Mitsui acquired 15% of the Company's Americas operations through a third party allocation of new shares, and offered convertible loans. This allowed the Japanese company to hold up to 30% shares of the Company's business in the Americas, for a total investment aggregate of EUR 297 million (JPY 33 billion). The Company hopes that this transaction will help bolster its presence in the Americas, as well as improve its standings with Japanese OEMs. (From an article in the Nikkan Jidosha Shimbun on January 11, 2013)
Contracts-Gestamp Bizkaia, a subsidiary of the Company, will provide stamped parts as part of a Mercedes-Benz project for a van which was launched in the spring of 2014. The VS20 project will run from 2014 through 2023 and is expected to produce 125,000 vehicles. Due to the project, the Company plans to invest a total of EUR 60 million between 2012 and 2017 in Gestamp Bizkaia to install new manufacturing facilities and advanced management and configuration systems. (From a press release on October 23, 2013)
Awards-Volkswagen Group awarded the Company as one of its best suppliers with the Group Award 2013. (From a press release on June 24, 2013)
-The Company's facilities in Alabama, US and Kunshan, China both won the GM Supplier Quality Excellence Award in 2013.
-The Company's plant in Wuhan, China was awarded the Ford Best Partner Award in 2013.
R&D Facilities-The Company has 12 R&D facilities located in the following countries:
R&D Structure-There are approximately 1,000 employees in the Company working in research and development.
Capital Expenditure-Between 2012 and 2013, the Company invested more than EUR 1.2 billion worldwide.
-The Company expects to install 8 hot stamping lines in 2014, in addition to the 47 lines already installed.
Investment Outside Spain
-The Company completed an expansion of a joint venture plant in Kaluga, Russia. Since 2010, a total of EUR 180 million (RUB 8 billion) was invested into Gestamp-Severstal-Kaluga (GSK) by the Company and Severstal, a Russian steel and mining company. The expansion increased the plant's total area by 21,670 square meters to 55,655 square meters and allowed the installation of two new large stamping lines. The installation of the large stamping equipment increased the production capacity of GSK by 66%. (From a press release on September 18, 2013)
-Edscha, a subsidiary of the Company, celebrated the opening of its new plant in Kunshan, China, called Edscha Automotive Components Kunshan Co., Ltd. The plant contains automatic assembly lines and a stamping center which are used to manufacture hinge systems and door checks. A total of 200 jobs will eventually be created during the first development stage of the plant. At the time of the opening, Edscha Automotive Components Kunshan had already received a major production order for hood hinges from a large joint venture. In the future, the plant will develop an injection molding facility for plastic components and production lines for driver controls. (From a press release on September 2, 2013)
-The Company held an opening ceremony for its sixth plant in China, located in the Tiexi district at the BMW Automobile Industrial Park in Shenyang. The new plant has hot stamping, cold stamping and assembly capabilities and serves OEMs including BMW, Volkswagen, GM, Daimler and Hyundai. The plant was expected to have 182 employees by December 2013. (From a press release on April 15, 2013)
-The Company's subsidiary, Gestamp North America Inc. in McCalla, Alabama, US, has plans to hire 58 new employees with an annual payroll of USD 2.7 million. In addition, Gestamp North America had recently added an expansion of 96,000 square feet to its facility. Both of these measures are in response to the production of Mercedes-Benz C-Class sedan at its plant in Vance, Alabama, which will be launched in June 2014. (From a press release on July 16, 2013)