November 16 (SeeNews) - Etem Gestamp, a joint venture of Greek aluminium extrusion company Etem Group and Spain's automotive components manufacturer Gestamp, is on track to start receiving some 4 GWh of renewable energy per year under a power purchase agreement with Bulgarian renewable energy investor Private Equity Fund-Growth once the solar park is commissioned at the beginning of 2023, CEO Emmanouil Fountoukis told SeeNews.
The facility will be located near the city of Pazardjik, Fountoukis told SeeNews in an interview on Friday.
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“It is constructed with one of the most advanced technologies – a tracking system with a backtracking algorithm and 660 Wp bifacial PV modules,” he said.
Under the ten-year power purchase agreement (PPA), which was signed in August, Etem Gestamp will buy all the quantities to be produced by the planned solar park.
The move is the outcome of the company’s intensified efforts over the past two years to improve the energy efficiency of its manufacturing operations and increase the share of renewables in its energy mix.
Over the course of 2022, Etem Gestamp has been focusing on its readiness to implement new automotive projects in 2023. The company aims to have made cumulative investments in excess of 80 million euro ($83.3 million) in its Bulgarian business by the end of 2023, since its inception in 2019 when Etem Bulgaria, part of Greece's Viohalco, and Spain's Gestamp joined hands to establish Sofia-based companies Etem Gestamp Aluminum Extrusions and Gestamp Etem Automotive Bulgaria.
“Investing in the latest specialised production is serious and requires a lot of work, implementing cutting-edge technology, and putting together a solid team of experts. So, our following investments will be related to operational efficiency, automation, and the training and qualification of our employees,” Fountoukis noted.
The company’s turnover has doubled to 120 million euro from 61 million euro over the past three years.
“We aim to gradually power 100% of our operations with renewable energy to ensure reliable and sustainable operations. This will take time to happen as, in parallel, we are implementing our recently announced investment plan for additional equipment to increase our capacity,” Fountoukis added.
In March, Bulgaria’s innovation ministry announced that Etem Gestamp intends to invest over 120 million levs ($42.6 million/40.9 million euro) in the expansion of its car parts plant in the Bulgarian capital Sofia, creating over 130 jobs in the next two years.
The advance in electric mobility is leading to an increased demand for aluminium profiles and components for automobiles. Etem Gestamp recently won what it bills as the largest contract in its history with an unnamed major German car manufacturer.
“Our new lines will produce the aluminium elements for the battery box, which will be used in the manufacturer's next-generation electric platform for the next eight years,” Fountoukis said.
The company already works with a number of major global car manufacturers such as BMW, Audi, Daimler, Porsche, Volkswagen and Jaguar Land Rover, among others.
Currently, Etem Gestamp has investment plans linked to products' sustainability and aligned with the goals of the automotive sector to improve fuel efficiency and cut carbon emissions throughout the life cycle of vehicles.
“Simultaneously, we are always in talks with key European and overseas players in the automotive sector to investigate opportunities for our business development. At the moment, I am not in a position to disclose more details, but for sure further information will be shared at a more mature level,” Fountoukis concluded.
($ = 0.96073 euro)