Gestamp acquires 33% stake in Gescrap to enhance its ESG programme
Gescrap is an MNC dedicated to the recycling of metals and total waste management and is the European leader in the management of high-quality scrap.
Gestamp, which specialises in the design, development and manufacture of highly engineered metal components for the automobile industry, has acquired a 33.3% stake in the Gescrap Group.
Gescrap is a multinational company founded in 1994 dedicated to the recycling of metals and total waste management for the industry and is the European leader in the management of high-quality scrap.
"We are convinced that this is an important milestone in the company's history" said Inaki Velasco, Founder and CEO of Gescrap, "Gestamp as a strategic partner is going to reinforce our commitment to leadership in new business opportunities in the world of the circular economy and recycling, sectors which are certainly in full growth.”
Importance of the circular economy
Gestamp has a circular economy business model that promotes responsible practices in waste treatment. More than 98% of Gestamp's waste is recycled, reused and recovered instead of being deposited in landfills. The Gescrap operation enhances Gestamp's contribution to this circular economy.
“The company understands circularity as one of the basic pillars of its sustainability strategy,” affirms Ernesto Barcelo, Corporate Director of ESG, “since it contributes, on the one hand, to the reduction of mineral extraction (mainly iron and aluminum) with a direct impact due to the reduction of emissions in these supply chains and, on the other hand, the optimisation of waste management.”
Gestamp is driving a multitude of approaches to the circular economy: from R&D teams that design components with reduced material consumption and less waste processes, to the use of green energy for production (green PPAs have been signed with, among others, Naturgy and Cemig with more to come in 2023). The strategic investment in Gescrap will be an additional lever with which Gestamp will be able to enhance the circularity of its business model, promoting the use of its scrap as a secondary raw material in the production of low-emission steel.”
“Given our position in the automotive sector, it is our responsibility to contribute to the reduction of emissions throughout the supply chain,” said Francisco J. Riberas, Executive President of Gestamp. "We are very excited to participate in Gescrap, as this will allow us to join a profitable and growing business while reaffirming our competitive position with our clients and advancing our ESG strategy."
Images: Gestamp presentation
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