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Stadco and Gestamp agree to enter into JV in Russia

A unique JV will offer OEMs enhanced capabilities and improved efficiencies in the rapidly growing Russian automotive market.

Stadco Ltd and Gestamp Automoción have announced their intention to enter into a ground-breaking JV that will see both companies own an equal share of Stadco's dedicated body in white (BIW) stampings and assembly facility, currently under construction on a 15 hectare site in Vsevolozhsk, St Petersburg.

Earlier this year Stadco announced that it had been awarded a supply agreement with Ford that would see the need for the company to develop a BIW stampings and assembly facility in the St Petersburg region - the first such operation to be established in Russia by an international supplier.

Commenting on the strategic decisions behind the JV and the benefits it will now offer other OEM customers in the fast expanding Russian automotive market, Andrew Morriss, Managing Director of Stadco said: "As early as 2004 we realised that there was an opportunity for Stadco to offer the increasing number of incoming OEMs in Russia, modern facilities featuring the latest automated processes, which meet the international quality, cost and delivery standards expected by today's vehicle manufacturers.

"However, the sheer scale and rapid growth of the market and the potential for new business over the next year or so has surpassed all expectations. By combining Stadco's world leading BIW engineering and manufacturing capability with Gestamp's global scale and expertise, the JV will offer OEMs a unique and enhanced range of BIW services all from one, dedicated state-of-the-art facility in St Petersburg. Importantly, we believe the collaboration between our two companies will allow us jointly to better manage the expected rapid growth in business, from a larger number of OEMs, delivering multiple projects on behalf of our customers whilst, providing additional security and improved efficiencies", said Mr Morriss.

The state-of-the-art facility, featuring the latest automated processes, will initially employ up to 200 people and production is expected to start in January 2009. Stadco and Gestamp predict rapid growth for the plant and anticipate that within six years it will employ in the region of 800 staff.

Mr Morriss concludes: "The 15 hectare site in Vsevolozhsk in the St. Petersburg area is well located to allow us to offer our unique offering to other major OEMs that have established themselves in the region including Nissan, GM, Toyota and Suzuki."