Swedish rolled aluminium firm Gränges AB announced this week the formation of a joint venture with China’s Shandong Innovation Group (SIG) aimed at building an aluminium recycling and casting plant in southwest China.
Per the firm, the joint venture has arranged for low-carbon primary aluminium to be delivered to the plant in Yunnan Province via energy-efficient means. They also have identified a source of renewable energy nearby that will power the plant’s casting operations.
Jörgen Rosengren, CEO of Gränges, said in a press release that the plant will help it reach several goals.
“This is an essential step in our Navigate plan for sustainable growth. Partnering with SIG will bring us a big step closer to climate neutrality by 2040 and further increase our sourcing of sustainably produced metal and energy. The demand for sustainable aluminium solutions is on the rise throughout Asia. This partnership strengthens our competitiveness and enables us to create more value for our customers.”
Gränges says the project will require SEK225 million (US$21.68 million) in capital investment to bring to fruition. Upon completion, Gränges will hold a 49 percent share. The firm says they are about two years away from commissioning the plant.
Colin Xu, President Gränges Asia, says his firm is eager to work on this important project.
“Shandong Innovation Group is a leader in aluminium cast products in China and has been a valued and trusted partner and supplier to Gränges Asia for many years. We share the same vision for an innovative and sustainable development and I’m very pleased to extend our partnership through this joint venture. This is also an important step for Gränges Asia to strengthen our competitiveness and future-proof our operations in China and Asia.”
Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,800 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts a total nameplate capacity of 420 thousand metric tons per annum and an annual sales total of SEK13 billion (US$1.35 billion).