The EBRD is considering providing a loan to partially finance the expansion of Gestamp Automocion (Gestamp) - a global leader in the design and manufacture of automotive metal components for Original Equipment Manufacturers (OEMs) - in the EBRD Countries of Operations (COOs), namely in Russia, Turkey, Hungary and Poland. The Project will support implementation of Gestamp’s strategy of increasing its production capacities in the countries where its customer OEMs are moving their car assembly facilities
The Project meets the core objectives of the Bank in Russia with a focus on:
(i) promotion of the best available industrial technologies and business processes,
(ii) diversification and enhancement of value added manufacturing by the corporate sector and
(iii) investments to the regions of Russia to support regional modernization and growth.
The Project is also consistent with the Bank’s strategic priorities in Hungary, Poland and Turkey as it will promote the product innovation and development that will make a more efficient use of the local labour force and expand the countries role as export platforms of technology and skills-intensive products.
The key transition impact of this operation is likely to stem from the following:
Transfer and dispersion of skills. Gestamp is a company that is at the cutting edge of technology and innovation in its sector. Therefore, its investment into the Bank’s COOs shall contribute to the transfer of manufacturing skills to the local industry.
Expansion of competitive market interactions in other sectors. The localisation of suppliers across the entire value chain is the key challenge in the automotive sector in all emerging markets but especially in Russia with its critical mass of OEMs producing mainly for the growing internal market. As a supplier of metal components, further expansion of Gestamp will create a critical mass of demand for the locally produced automotive steel that itself shall trigger the investment into the high quality automotive steels by major local steel manufacturers.
Founded in 1997, Gestamp has become a global leader in the design and manufacture of automotive metal components and a key supplier to the world’s leading automotive producers. Gestamp manufactures a wide range of products, including structural and body components, skin and closures parts, bumpers, powered systems, cross car beams, chassis, hand brakes, pedal boxes, hinges and door checks.
A loan facility consisting of a EUR 100 million syndicated amortized A/B loan and a EUR 50 million loan with bullet repayment.
EUR 255 million.
The Project has been Categorised B in accordance with the EBRD’s Environmental & Social (E&S) Policy and E&S impacts have been confirmed through independent E&S DD are readily identifiable and can managed through the adoption of mitigation measures.
The Bank commissioned an independent firm of consultants to undertake E&S Due Diligence (E&SDD) which comprised corporate level assessment of policies, procedures and systems and an audit of selected sites to assess the operational performance of the company.
The findings of the independent E&SDD have resulted in minor actions being required of the client to meet the EBRD's performance requirements which have been stipulated in an E&S Action Plan. The key ESAP items include:
- Develop internal and external grievance mechanisms and implement a stakeholder engagement plan;
- Develop a corporate reduction target for recording and disclosing carbon emissions; and
Review and update corporate procedures relating to contractor management.
Monitoring of the E&S performance of the company will be undertaken by reviewing E&S disclosures and annual reports provided by the company. If considered necessary, additional discussion and site visits will be undertaken to verify information provided.
Richard Egües, Director of Corporate Development and International Financing (firstname.lastname@example.org).
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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