Partner Article

Gestamp motors forward

THE North East arm of car parts maker Gestamp – which supplies Nissan’s Wearside plant – has returned to profitability after a period of heavy losses.

The company is now pursuing new commercial activities and expecting to grow its relationship with General Motors as it looks to offset the impending end of its supply chain contract with Nissan for its Micra model.

The firm employs around 135 people at its plant in Washington – down from 189 in 2008 – and saw its earnings recover from a pre-tax loss of £7m to a £1.97m profit in the year ending December 2009.

Turnover climbed 4.7% to £39.6m during the period, while the firm shaved £695,000 from its staff costs, £522,000 in “inefficiencies” and £574,000 in logistical savings.

The company said it intends to build on savings in quality costs to improve its processes after starting two new projects in 2009 with General Motors and Jaguar.

Looking forward, a company statement said: “Although the automotive industry was supported by scrappage schemes during 2009 and there are indications of an upturn in demand, the automotive sector will always present risk and challenge to the company.”

Gestamp has operations in 17 countries, with 56 production centres and 11,750 members of staff.

This was posted in Bdaily's Members' News section by Ruth Mitchell .