Gränges, the leading global supplier of rolled aluminium products for heat exchangers and niche markets, has decided to invest €40 million to improve efficiency and expand the company’s plant in Finspång, located 180 km south-west of Stockholm.
“By streamlining and expanding the facility in Finspång, we create opportunities for a clear improvement of operating results in our European operations. We also take important steps forward in our sustainability efforts by reducing transports and converting from diesel to electric forklifts”, says Johan Menckel, CEO, Gränges.
The investment includes acquisition of land and buildings, upgrading of rolling mills and relocation of existing machinery, with a view to significantly improve logistics on site and contribute to an improved environmental footprint.
Uptake in electromobility
Gränges expects to complete its Swedish expansion in the second half of 2021 and the project will increase capacity at the plant by 20 ktonnes, to 120 ktonnes annually.
Menckel continues: “We see very good growth for advanced materials for heat exchangers in Europe in the coming years as more consumers are demanding electric and hybrid cars. The fact that we will have a more efficient facility, with better logistics flows, improves our competitiveness while providing opportunity for growth.”
In Finspång, Gränges produces advanced aluminium materials for heat exchangers to the automotive industry. In 2017, the European market accounted for approximately 18 per cent of Gränges’ sales volume.
Gränges is the world’s largest producer of rolled aluminium for heat exhangers with some 1,600 employees and net sales of more than EUR 1bn. Every second car manufactured globally is built using Gränges’ aluminium material. The company has production facilities in Sweden, China and USA with a combined annual capacity of 420,000 metric tonnes.