Gestamp takes over one-third part of Gescrap creating circular economy for European automobile sector

Spanish automotive components supplier, Gestamp has purchased one-third of Gescrap, a scrap recovery and recycling enterprise. It explained that the reduction of mineral extraction from iron and aluminium would bring a definitive impact by discarding carbon emissions from the entire supply chain.

Gestamp claims that this initiative would capacitate the company to run a proper circular economy and optimise them to make full use of recycled materials for its manufactured products.

Gestamp has mastered the art of developing metal body or chassis parts, recycling and using 98 per cent of the waste yielded from its overall activities. The Spanish tier-one company proudly presides over 100 production facilities spread all across the globe.

Gestamp has declared that this agreement with Gescrap will amplify the use of its scrap as a tertiary raw material in the production of low-emission steel.

Gestamp’s recently appointed corporate director of ESG, said Ernesto Barceló, commented: “The company understands circularity as one of the basic pillars of its sustainability strategy. It contributes, on the one hand, to the reduction of mineral extraction (mainly iron and aluminium) with a direct impact due to the reduction of emissions in these supply chains and, on the other hand, the optimisation of waste management.”

As early as July 2022, the company had allied with the biggest energy generator in Brazil, Cemig, for renewable energy provisions to run its research and design units located in the country. Similarly, in August, Gestamp joined hands with Greek aluminium extrusion producer Etem Group to supply properly sourced aluminium components to the automobile sector. To run the joint operation, the company also forged a ten-year commitment with a Bulgarian renewable energy investor, Growth, for 4 GWh of solar energy each year.  

“We are convinced that this is an important milestone in the company’s history,” said Iñaki 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.”

For the past 28 years, Gescrap, with its headquarters in Spain, has accomplished building a profound scrap recovery business exercising waste management for large automotive firms globally. The company is one of the primary suppliers of high-quality scrap metal all throughout Europe.