Gränges AB signed an agreement to acquire all outstanding shares of the company Impexmetal S.A., which includes Polish flat rolled aluminum producer Aluminium Konin and certain other assets, from the Boryszew Group. The SEK 2.3 billion (US$245 million) acquisition will strengthen Gränges’ product offering and presence in Europe and provide a strong position in new attractive niche markets.
Following the acquisition, Gränges will complete the expansion program (a new cut-to-length line was installed in 2017) already initiated at Aluminium Konin, which will increase capacity at the Polish facility to 140,000 tonnes.
Aluminium Konin operates a cost competitive, integrated rolling mill located in Konin, Poland, with a current annual capacity of 100,000 tonnes. The company offers a diversified product portfolio of high quality aluminum sheet and strip products. The portfolio includes material for automotive heat exchangers and structures, speciality packaging, and general coil and sheet products for customers in Europe. The location in Konin, with close geographical proximity to key customers, provides good opportunities to further expand closed loop recycling systems, an area of increased importance for the aluminum industry.
The acquisition of Aluminium Konin is a good strategic fit for Gränges, providing new capacity and capabilities, particularly for the production of products for future vehicles. “Aluminium Konin contributes with technically advanced operations, strategically located in Central Europe,” said Johan Menckel, CEO of Gränges. “The acquisition is a good strategic fit and complements our business and geographic presence. Together we are creating a strong platform for product mix optimization and sustainable profitable growth. Aluminium Konin strengthens Gränges’ product offering for new niche markets and enables a broader offering of solutions for future vehicles. The acquisition will sharpen our competitive strength and create a stronger position in growing markets to further drive the development of sustainable customer offerings.”
In addition, Gränges creates value from sustainability and has a strong commitment to develop more sustainable products, minimize the environmental impact of its operations, uphold ethical business practices, and provide a safe and good working environment. Through the acquisition of Aluminium Konin, Gränges can take a more active role in the transition to more sustainable transportation solutions by offering a broader range of sustainable products to applications such as electric vehicles. By implementing Gränges’ well-established sustainability framework and tools, in combination with its system for lean operations, there is a potential to reduce the carbon footprint of the acquired business through improved material efficiency, increased recycling, reduced energy intensity and an improved energy mix.
The acquisition is subject to regulatory approval by the relevant competition authorities and is subject to certain conditions. Gränges is required to separate out all other assets from Impexmetal, after which Impexmetal will consist solely of the Aluminium Konin operations.
Closing of the acquisition is expected in the second quarter of 2020, at which time Impexmetal and Aluminium Konin will become a wholly owned subsidiary of Gränges AB.