Gränges AB has announced two plans to expand rolling capacity in the U.S.
Tennessee Expansion
Granges will invest US$110 million to expand its aluminum foil rolling operation in Huntingdon, Tennessee, in order to meet growing demand for light gauge foil, automotive heat exchanger materials, and heating, ventilation, and air conditioning (HVAC) applications.
“The expansion in Huntingdon marks the next step in our strategic growth plan for the North American market,” explained Johan Menckel, CEO of Gränges. “Gränges has built a strong reputation in the aluminum rolling industry, and this expansion allows us to further support our customers’ growth.”
The Huntingdon plant was acquired by Gränges in 2016, when the company purchased Norandal USA, which was renamed Gränges Americas. The expansion of this facility includes investment in buildings, casters, cold rolling mills, annealing furnaces, and slitters — further positioning Huntingdon as one of the most modern and efficient rolling mills in North America. When completed, the capacity in Huntingdon will increase from about 160,000 tonnes to nearly 200,000 tonnes per year.
The project is estimated to take about two years to complete. This will be the second major investment in Huntingdon since 2000, strengthening Gränges’ focus on foil and automotive heat exchanger products. Gränges will finance the expansion investment in Huntingdon with existing cash, internally generated cash flows and external loans.
The expansion is supported by Bill Haslam, the governor of Tennessee; the TN Department of Economic and Community Development; Tennessee Valley Authority; and local Huntingdon Officials. “In TN, we take pride in the fact that our hardworking residents still make things,” said Haslam. “The Gränges facility is a vital part of the Carroll County community and I’d like to thank Gränges for committing to create new jobs in Huntingdon and bringing us closer to making Tennessee the No. 1 location in the Southeast for high quality jobs.” The expansion is expected to create 85 permanent full-time jobs when completed.
Joint Venture with Mitsubishi
Gränges signed a letter of intent with Mitsubishi Aluminum Co., Ltd to form a joint venture in North America for the manufacture of advanced aluminium foil materials for brazed automotive heat exchangers.
“The agreement with Mitsubishi Aluminum marks a start for a long-term partnership in North America. We will leverage our strengths and together capture opportunities in the market for advanced aluminium products to mainly the automotive industry, for brazed heat exchangers but also for other products”, said Menckel.
The letter of intent is the first step towards forming the joint venture. Once formed, the joint venture will combine the high expertise of Gränges and Mitsubishi Aluminum within aluminium rolling for establishment of a new production facility in North America.
“We remain focused on growing our presence in automotive heat exchanger materials in North America,” said Akio Hamaji, president and CEO of Mitsubishi Aluminum Co., Ltd. “We see many synergies with Gränges, most importantly, absolute focus on research and innovation to meet the growing demands of our automotive customers. We are excited and look forward to a long-term partnership with Gränges.”
The joint venture is expected to be established in 2018. Additional terms of the agreement will be disclosed when finalized.
Editor’s Note: This post was edited to add the Mitsubishi joint venture announcement.