Gränges completes acquisition in China

Gränges experiences strong demand for its high-quality, sustainable electrification solutions, including battery casings, battery foil, and battery cooling plates, driving significant volume growth and high capacity utilization locally.

As of today, October 25, 2024, Gränges has completed the acquisition of a cost-efficient casting and hot-rolling facility in the Shandong province according to the agreement made on May 31, 2024. By this agreement, Gränges also gains access to scalable downstream capabilities and supply of low-carbon aluminum. In return, SIG obtains 20 percent of the outstanding shares in Gränges’ subsidiary in China. The acquisition and expanded partnership enable further expansion in the Asian market.

The transaction will lead to non-recurring costs of approximately SEK 30 million in the fourth quarter 2024. The new production facility is expected to contribute positively to the sales volume already in the fourth quarter 2024 at an approximately breakeven adjusted operating profit. In 2025, the transaction is expected to contribute marginally to Gränges’ earnings per share after minority interests.

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Gränges extends strategic partnership to support continued electrification growth in Asia