International chassis and parts supplier, Gestamp, has invested £150,000 ($240,000) to extend storage capacity at its Washington plant in the northeast of the UK following a major contract win with BMW to supply parts for Mini production at the carmaker’s Oxford plant. The supply contract will run to 2021.
The company will extend the Washington facility by 1,125 square metres to provide additional storage prior to shipment of the parts to the Oxford plant. Gestamp also supplies Nissan Sunderland with parts for the Qashqai, which are transported by logistics provider GBA. BMW is handling its own transport for the inbound parts from Gestamp's facility to the Oxford plant.
Gestamp’s supply of parts to the BMW plant and its two new contracts with Nissan for the new Qashqai model begin next month. With the new long-term contracts Potts forecasts that turnover in 2015 will be between £34m-£37m ($56m-$59m).
“We’re delighted to have won this contract with a new car manufacturer customer for Gestamp,” said Mark Potts, operations director at Gestamp. “Four years ago this company worked 100% for Nissan. Now we have contracts with Nissan, General Motors, Jaguar Land Rover and BMW.”
Pictured (from left) Mark Potts, Gestamp operations director and counsillor Paul Watson, leader of Sunderland City Council, in Gestamp's new extension at its Washington plant