Granges Expands East Asian Presence with Acquisition of Aluminium Plant in China

Swedish company Granges has announced the acquisition of a plant for producing cast aluminium parts and rolled aluminium sheets in the Shandong province of China. The acquisition comes as part of a partnership agreement with Shandong Innovation Group (SIG) signed on May 31, 2024. The deal aims to strengthen Granges' presence in the East Asian market.

As part of the agreement, SIG will continue to supply aluminium semi-finished products, contributing 20% of the profits generated from the partnership to Granges. The Swedish company expects the acquisition and expanded partnership to facilitate further market penetration in East Asia, leveraging SIG's established supply chain.

Granges estimates that the transaction will incur a cost of SEK 30 million in the fourth quarter of 2024. Despite this initial expenditure, the company anticipates a positive impact on sales as early as the same quarter, driven by strong demand for aluminium products in the region.

Granges has reported growing interest in its high-quality aluminium products, including battery components such as housings, battery foil, and cooling plates. The Shandong acquisition will enhance its ability to serve the increasing demand in the East Asian market and support its goal of expanding production capabilities.