A focused business model
Gränges’ business model is based on a strict focus on materials for brazed heat exchangers. The company develops, produces and markets advanced materials that enhance the efficiency of the customer’s manufacturing processes, and the performance of the final product, the brazed heat exchanger.
Strong, long-term customer relationships
Gränges’ business is based on longterm customer relationships. In close co-operation with customers, Gränges develops specific products for each heat exchanger model, and subsequently provides customers with technical support throughout the entire product life cycle. The development of a new product takes an average of two years, followed by up to one year of product validation, before it is ready for serial production. Gränges’ research and development department continuously develops new products and processes, which give a technical edge in several key areas.
Leading-edge competence in key areas
Gränges has strong development and production competence in four key areas: development of alloys, cladding, rolling and thermo-mechanical processing and slitting. These competencies are combined to deliver high valueadded products. Production takes place only after an order has been placed, and according to customer requirements. Gränges has a dynamic portfolio of some 1,500 products, which are adapted to specific customer needs.
Established revenue model
Gränges generates revenues through sales of heat exchanger materials. Sales contracts contain two price components: the metal price, based on prevailing market prices; and a conversion price, which includes the added value Gränges contributes in the form of material properties and product complexity. The metal price component is passed on to customers, which means that Gränges is protected from fluctuations in raw material prices.
Specially adapted production facilities
Gränges’ production facilities are optimised for producing heat exchanger materials. Between 2008–2012, Gränges conducted a major investment programme to increase capacity and productivity in its production facilities. This has resulted in better process stability, and improved profitability. The production facilities in China and Sweden are well-invested. During the next few years, annual maintenance investments are expected to be significantly less than depreciation.
Gränges’ many years of specialisation within the development and production of rolled products for brazed heat exchangers has contributed to deep knowledge of material properties and manufacturing processes throughout the business. New knowledge and experience are systematically spread between different parts of the organisation, with a view to maintaining the competitive edge that has led to Gränges’ world-leading position in its niche.
A strong position in the value chain
Gränges’ position in the value chain means that the company sources aluminium from primary aluminium producers as well as recycled aluminium and processes it into rolled products. Gränges’ customers in turn consist of producers of heat exchangers, including suppliers to the automotive industry and producers of stationary heat exchangers.