Swedish rolled aluminium firm Gränges AB announced yesterday a SEK400-million (US$43.87 million) project to improve efficiency and increase capacity at the firm’s operations at Finspång.
Per the firm’s press release, the project includes the purchasing of land and buildings, an upgrade of the site’s rolling mill, and relocation of existing machinery. The planned expansion is aimed at boosting both the site’s logistics and shrinking its environmental impact. Gränges says the improvements will be funded by internally generated funds, existing cash, and credit facilities.
Gränges CEO Johan Menckel hailed the move as a step forward in improving the firm’s European operations.
“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.”
The Finspång plant, which produces aluminium for automotive heat exchangers, will see its nameplate capacity increase to 120 thousand metric tons per annum upon the project’s completion, which is estimated to be during the latter half of 2021. The Finspång plant supplies 18 percent of its total output to European automakers.
“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,” Menckel continued. “The fact that we will have a more efficient facility, with better logistics flows, improves our competitiveness while providing opportunity for growth”
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 1,000 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 an annual sales total of SEK10 billion (US$1.09 billion).