Gränges in Sweden has decided to invest SEK400m to improve efficiency and expand the production facility in Finspång. The project is expected to be completed in the second half of 2021 and will increase capacity in the plant by 20,000 tonnes to 120,000 tpy. “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 CEO Johan Menckel.
The investment includes acquisition of land and buildings, upgrading of rolling mills and relocation of existing machinery, which together significantly improves logistics on site and contributes to an improved environmental footprint. From 2022, positive effects are expected of the investment in terms of both efficiency measures and increased sales, and thus higher profitability.
Gränges expects healthy 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,” says Menckel.
In Finspång, Gränges produces aluminium materials for heat exchangers to the automotive industry. In 2017, the European market accounted for around 18% of Gränges sales volume.