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Gränges Acquires Casting and Hot Rolling Facility in China

close up view of an aluminum coil© by Gränges

Gränges completed the acquisition of a casting and hot rolling facility in the Shandong Province, China. The purchase was made as part of its long-term strategic partnership with Shandong Innovation Group (SIG), with SIG obtaining 20% of the outstanding shares of the new facility. This will support the company’s growth in the Asian automotive market.

“Strengthening the scale, efficiency and sustainability of our Asian supply chain is essential for our ability to gain further market share in low-carbon and circular aluminum solutions for the EV and battery markets,” noted Colin Xu, president Gränges Asia. “We are very pleased to take this next step with our trusted and valued partner SIG.”

Asia is the world’s leading market for electrical vehicles and other electrification applications, offering an attractive, long-term opportunity for Gränges. In this market, the company has experienced strong demand for its high-quality, sustainable electrification solutions, including battery casing, battery foil, battery cooling plates, and other components.

The acquisition provides Gränges with access to scalable downstream capabilities (casting and hot rolling), as well as access to nearby supply of low-carbon recycled and primary aluminum. This will strengthen the company’s competitiveness and enable its to drive significant volume growth and high capacity utilization locally — allowing for further expansion in the Asian market.

According to the company, the new casting and rolling facility is expected to contribute positively to the sales volume in the fourth quarter 2024 at an approximately breakeven adjusted operating profit. In 2025, the transaction is expected to contribute marginally to Gränges’ earnings per share after minority interests.

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