Description of Risk
1. Changes in the automotive market
About half of Gränges’ sales volume goes to suppliers in the automotive industry. Vehicle production depends on a number of external factors such as the global economy, interest rates, consumer behaviour, taxes, and legislation. During an economic downturn, the automotive industry normally sees a decline in production, which reduces demand for aluminium products used in vehicles.
2. Technology becomes outdated
Gränges’ advanced aluminium products and technological leadership is a result of a long-term commitment to research and innovation, and a close cooperation with customers to develop new products and solutions. It is a risk that the technology becomes outdated and Gränges loses its leadership.
1. Diversification and adaptability
Gränges is a global company operating in all major regions. The worldwide presence reduces risks of an economic downturn in individual markets. Gränges has a diversified product portfolio and about half of sales are to other niche markets in the industry, including stationary heat exchangers, transformers, and food packaging. The aim is to continue to increase sales to other markets than the automotive industry.
2. Extensive R&I
Research and innovation is a core element of Gränges’ strategy, and Gränges continues to increase its efforts in this area. To be able to meet future market demands, in-depth research work is combined with innovation. Gränges supports its customers in product development for future applications such as electrical vehicles, and invests to secure competence and advanced technology suited for next-generation materials.