Swedish rolled aluminium firm Gränges AB announced on Friday the completion of its acquisition of Polish flat rolled aluminium producer Aluminium Konin.
Per the firm, the acquisition will enhance its product line-up and presence on the European continent. Gränges anticipates that the move will also expand the firm’s offerings in the transportation arena, especially for electric vehicles.
Gränges’ CEO Johan Menckel said in a press release that Aluminium Konin adds a new set of tools for increasing its market share in the region’s several niche markets.
“The acquisition is a good strategic fit for Gränges and complements our business and geographic presence. Together we are creating a strong platform for product mix optimization and sustainable profitable growth. Aluminium Konin contributes with technically advanced operations, strategically located in Central Europe, and strengthens Gränges’ product offering for new niche markets and enables a broader offering of solutions for future vehicles. The acquisition will sharpen our competitive strength and create a stronger position in growing markets to further drive the development of sustainable customer offerings.”
The European Union approved of the purchase in mid-September, and Aluminium Konin’s then-current owner Boryszew S.A. inked the agreement relating to purchase price. Gränges will pay SEK2.2 billion (US$254.6 million), with a portion to consist of 2,442,268 shares of Gränges to be transferred to Boryszew. Aluminium Konin will become a wholly-owned subsidiary of Gränges under its European operations.
Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,800 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts a total nameplate capacity of 420 thousand metric tons per annum and an annual sales total of SEK13 billion (US$1.35 billion).