Gestamp has acquired a manufacturing plant in Sorocaba, Brazil, enhancing its strategic focus on collaborations with Japanese automotive manufacturers.

Target Information

Gestamp, a leading Spanish multinational specializing in the design, development, and manufacturing of high-precision metal components for the automotive sector, has announced its acquisition of a manufacturing plant located in Sorocaba, São Paulo, Brazil. The plant was previously owned by Scorpios Indústria Metalúrgica Limitada, a local company known for its production of metal components. The facility employs 418 workers and reported revenues of approximately €27 million (105 million Brazilian reals) in the fiscal year 2017. This acquisition is still pending approval from the relevant competition authorities.

The Sorocaba plant primarily produces Body in White components for Toyota, a prominent Japanese OEM. This acquisition aligns with Gestamp's strategic goal to enhance its collaborations with Japanese automotive manufacturers, who represent about one-third of the global light vehicle production market.

Industry Overview in Brazil

Brazil's automotive industry is an essential segment of the economy, being the ninth largest vehicle manufacturing market globally, with an annual output of nearly 3 million cars. Despite experiencing a significant downturn, with produc