Gestamp is to build a new £70 million manufacturing plant in Four Ashes near Wolverhampton, which is expected to safeguard 800 jobs with the automotive component manufacturer and designer.
The new 50,000 sq metre plant will be home to a transfer servo press line, also known as XL press, which will improve the firmâs hot stamping capabilities to better serve its customers in the area including Toyota, Nissan-Renault, JLR, Honda and BMW.
Production at Gestampâs current Cannock plant will move progressively to the new site, where the company will aim to âcreate a more efficient and competitive, customer focused factory.â
When it is complete, the annual turnover of the new West Midlands plant is due to surpass £140 million per year, while part of the existing Cannock facilities may be retained for development and training requirements.
Gestamp UK Country Manager, Ian Middleton, said in a statement: We have been working on this project for a long time. [The] United Kingdom is one of Gestamp top five global markets since the beginning of our operations here in 2011.
Our company is committed to helping our customers in key aspects such as quality, safety and lightweight innovations, therefore Gestamp wants its facilities to utilise the most modern stamping technologies available to fulfil its objectives.
In June this year, the car parts manufacturing company looked to the next generation of chassis work with support of £12 million.
Gestamp chiefs said that the cash would further strengthen the development of their parts which are relied upon by manufacturers including Toyota, Ford, Bentley and Nissan.
The funding provided a further boost for the business, which last year reported that it had spent millions on improving its Aycliffe bases by developing a press plant and installing a new press hall, parts store and racking.
European Investment Bank vice-president, Jonathan Taylor, said that the company has a strong track record of supporting investment to strengthen the world class leadership of the UK industry.