Sunderland-based car parts manufacturer Gestamp has won its first major contract with BMW, to provide parts for the new MINI series.
Gestamp has just invested £150,000 in a new 1125 sq m extension at its Washington plant to store the newly-produced MINI parts before they are delivered to Oxford.
The company designs and builds chassis and parts for global motor manufacturers Nissan, General Motors, Jaguar Landrover and now BMW. The firm, which also has UK sites in Newton Aycliffe, Cannock, Llanelli and Fareham, now has 196 employees at Sunderland.
As a result of the BMW contract, which runs until 2021, nine temporary staff at Gestamp have become permanent this month, and a review for more to be transferred from temporary to permanent roles to cope with growth in demand is underway.
With the new long-term contracts Mark Potts forecasts that turnover in 2015 will be between £34m-£37m.
Mark Potts, operations director at Gestamp, said: “We’re delighted to have won this contract with a new car manufacturer customer for Gestamp. Four years ago this company worked 100% for Nissan. Now we have contracts with Nissan, General Motors, Jaguar Landrover and BMW.”
The success in attracting new customers follows a change in strategy at Gestamp in 2008, when it also introduced a ‘lean development’ programme. Each employee now receives an average of eight to 10 hours of lean management training.
Mark Potts said: “The changes to our strategy with the introduction of lean development and a culture change from the workforce has changed perceptions across the company. There’s a real team spirit here which has definitely helped productivity levels and staff retention. Gestamp is a family-run company with its headquarters in Spain and our plant reflects those values of working together well as one team. ”
Sunderland City Council works closely with Gestamp, and provided advice and support for the newly completed extension at the company.
Mark Potts said: “I trust and value the input from the business investment team at the City Council. They understand the automotive sector globally and have helped Gestamp in many practical and strategic ways over the years. They’ve worked alongside us as we’ve grown, and they’re the first people I go to for advice. Sunderland is a good location for us, close to our main customer Nissan, and the A1 and major transport routes.”
Councillor Paul Watson, Leader of Sunderland City Council said: “Gestamp is an important part of Sunderland’s automotive sector, with a first-rate customer list, and a series of successful contract wins.
“We’ve worked with the company for many years which means we can offer advice based on up-to-date knowledge of its plans. Gestamp’s ambitions echo our city’s world-class ambitions to be Europe’s automotive hub. It’s the best possible news to hear that Gestamp is creating new permanent jobs at Sunderland through major new contracts in the global automotive market.”
Gestamp is a Spanish group of companies headquartered in Madrid. It has more than 33,000 employees at 120 sites worldwide. In 2011 its turnover was £6.5 billion.
