Gränges invests in advanced spray-forming technology production

"Through the investment, we secure competence and the supply chain within advanced spray-forming technology, well suited for the next generation of materials for heat exchangers. We expect to see very good opportunities for continued development of our customer offering built on this technology," says Gränges CEO Johan Menckel.

Gränges' agreement with Erbslöh Aluminium results in Gränges investing EUR 4.4 million in cash for 51 percent of GETEK GmbH. Erbslöh, contributing production assets, personnel and know-how, will own 49 percent of the company. The company will serve both Gränges and Erbslöh as customers from two production facilities, one in Germany and one in France. In total, the production facilities will have an annual spray-forming capacity of around 4,000 tonnes. GETEK is estimated to have revenues of approximately EUR 3 million in 2017. The closing of the transaction is pending upon regulatory approval from relevant competition authorities. The transaction is expected to have a neutral effect on Gränges earnings per share in current year. 

For further information, please contact:
Pernilla Grennfelt, SVP Communications and IR of Gränges
pernilla.grennfelt@granges.com,tel: +46 702 90 99 55

The information in this press release is such that Gränges must disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on Tuesday 29 August 2017 at 17.45 CET.

About Erbslöh Aluminium
Erbslöh Aluminium GmbH is engaged in processing aluminium materials for more than one-hundred years. The plant in Velbert-Neviges, West-Germany, produces tight tolerance aluminium profiles for the automotive sector, as well as the electrical industry, sanitary engineering, and subsidiary construction businesses. Since 2000, Erbslöh has been a member of the global industrial group WKW which mainly focuses on window trims, functional mouldings and roof-rail systems for the automotive industry. The WKW Group employs more than 11,000 employees world-wide and have an annual sale of more than USD 1.3 billion. More information of Erbslöh Aluminium GmbH is available at wkw.de.

About Gränges
Gränges is a leading global supplier of rolled aluminium products for heat exchanger applications and other niche markets. In materials for brazed heat exchangers Gränges is the global leader with a market share of approximately 20%. The company develops, produces and markets advanced materials that enhance efficiency in the customer manufacturing process and the performance of the final products; brazed heat exchangers. The company's geographical markets are Europe, Asia and the Americas. Its production facilities are located in Sweden, China and the United States, and have a combined annual capacity of 420,000 metric tonnes. Gränges has some 1,600 employees and net sales of more than SEK 10 billion. The share is listed on Nasdaq Stockholm. More information on Gränges is available at granges.com.