Gränges will invest USD33m to expand its aluminium casting capacity in Huntingdon, Tennessee, to meet the growing demand from North American customers.
The increase in aluminium casting capacity follows the previous and successful investments in new rolling capacity at the sites in Huntingdon and Newport, Arkansas. “This investment is the third major US investment we make since 2017. It underscores our commitment to growing our business with our customers and the markets we serve and strengthens our platform for continued profitable growth. It also supports our high sustainability ambitions by improving both energy and carbon intensity,” says Patrick Lawlor, president Gränges Americas.
Investment in new aluminium casting line
The expansion includes investment in buildings and a new casting line. When completed, the casting capacity in Huntingdon will increase by about 25,000 tpy and will enable higher capacity utilization in the downstream rolling and slitting operations.
The project is estimated to take less than two years to complete and is expected to contribute positively to Gränges’ operating profit in 2023. Gränges will finance the expansion investment in Huntingdon with existing cash and internally generated cash flows.