OREANDA-NEWS. Gestamp, world leader in the design, development and production of metal components and units for the automobile sector, and ОАО Severstal, one of the world’s leading steel and steel-related mining companies, have completed the expansion of their joint venture Gestamp-Severstal-Kaluga (GSK), which has received investment of EUR 180 mln since its launch in 2010.

On September 18 at Kaluga’s Ambassador Hotel, the completed project will be formally presented at a meeting attended by Anatoly Artamonov, Governor of Kaluga Region, Francisco Riberas, President and CEO of Gestamp, senior managers of Severstal (which has two joint ventures with Gestamp in Russia), and representatives of the Embassy and the Economic and Commercial Office of Spain. The Gestamp-Severstal-Kaluga Plant expansion project was to increase the plant’s total area by 21,670 sqm up to 55,655 sqm.

Two new large capacity pressing lines (G1 or “tandem”) have already been introduced at the Kaluga plant, increasing Gestamp-Severstal-Kaluga’s production capacity by 66%.

Francisco Riberas, President and CEO of Gestamp, noted: “When we opened our first plant in Russia in 2009 we were pioneers; we had faith this country's huge potential, and our bold move has since been rewarded. The expansion of our Kaluga plant is the next stage of our development in Russia where we already have an experienced team, a significant client base and the world’s most advanced technology. GSK will soon become one of the three largest Gestamp plants in the world, with the support and cooperation of our partner Severstal.

Sergey Toropov, CEO of Severstal Russian Steel, commented: “Strong demand from the automotive industry has driven the need to expand Gestamp-Severstal Kaluga’s production capacity. It is also an indication of the successful partnership between Severstal and Gestamp Automocion. This expansion will make Gestamp-Severstal Kaluga a major supplier of body stamping products for five of Volkswagen Group’s car models made in Russia and is another step in Gestamp-Severstal Kaluga’s strategic objective of being a leading supplier to the automotive industry in the region with the ability to meet its customers’ growing needs.”

The Gestamp-Severstal-Kaluga plant first launched production in June 2010. During construction of the plant a tunnel was built connecting GSK directly with the neighboring Volkswagen plant. The plant currently employs around 400 personnel and the expansion of the GSK will generate a 15% increase in workplaces.