FAQs

Do you have any questions about Gränges? Start with checking in our list among common questions.

The foundations of today’s Gränges were laid in 1896 in Grängesberg. Various industrial companies were subsequently added to the Group. In 1969 the Group acquired Svenska Metallverken, which included an aluminium products business, an operation that would later evolve into Gränges and Sapa. Development and production of aluminium heat exchanger strips started in Finspång in 1972.

Gränges has some 1,600 employees and net sales of more than SEK 10 billion.

Gränges is a global leader in aluminium engineering, manufacturing and innovation. Gränges focus on rolled aluminium products for heat exchangers and selected niche applications. In materials for brazed heat exchangers, Gränges is the global leader with a market share of approximately 20 per cent.

Gränges’ production facilities are located in Sweden, China and the United States, and have a combined annual capacity of 420,000 metric tonnes.

Gränges sells rolled aluminium. The products are priced in tonnes.

Under Gränges’ business model, the costs of the raw material (aluminium) are passed on to the customer. Gränges therefore does not make money on the metal itself. The Group’s earnings come from the value added in the manufacturing process in the form of material properties and product complexity.

In 2016, Asia accounted for 34 per cent of group sales in terms of volume, with China as its main market.

In total, the European market amounted to around 27 per cent of group sold volumes in 2016, with the UK, Italy, the Czech Republic and Poland as the largest markets. Americas accounted for around 39 per cent of the Group’s sales volume in 2016, following the consolidation of Noranda into Gränges’ accounts from 22 August, 2016. Gränges’ main markets are the US and Mexico. In South America, Brazil is an important market.

Proforma full-year 2016 (i.e. the acquisition of Noranda is included the full-year 2016) customers in Asia accounted for 23 per cent of the Group’s sales, while Europe accounted for 18 per cent and North and South America for 59 per cent.

Gränges end-customers are in the automotive industry, the stationary heat exchanger industry, and in niche markets such as transformers and food packaging.

The ten largest customers represented 53 per cent of the total sales volume in 2016.

There is a constant need to reduce energy consumption and costs, and improve reliability for manufacturers and users of, for example, vehicles, air conditioning and heating systems. Demand is growing for more energy efficient engines and heat exchangers.

The driving force to reduce environmental impact and emissions of damaging greenhouse gases affects the automotive and stationary heat exchanger industries through demand for lighter weight products and increased efficiency, among other things.


The automotive industry

The market for rolled products for aluminium heat exchangers closely correlates with global vehicle production, but is also affected by the number of heat exchangers per vehicle, which tends to increase in line with demands for such things as improved comfort.


The stationary heat exchanger industry (HVAC)

HVAC includes heating and cooling systems for residential housing, and commercial and industrial property. The underlying growth factor for heat exchangers in HVAC, regardless of type, is global construction investment, which is expected to continue to grow until 2020. In time, brazed aluminium heat exchangers, which today account for only a few per cent of the total market, are expected to replace conventional mechanically assembled solutions.


Other markets

The properties of aluminium foil makes it ideal for food cartons and pouches. For decades, the use of foil has grown steadily. As consumers are becoming increasingly dependent on ready-to-eat foods and beverages, the demand for aluminium foils for consumer packaging purposes will rise.

Another end-market in North America is materials for transformers. In North America, aluminium is becoming more common as winding material in distribution transformers, while copper is more common for large power transformers. Aluminium has significant cost and weight advantages over copper.

Sustainability is an essential and integrated element of Gränges’ core competences and operations. Through continuous streamlining of production processes, environmentally conscious product development, and safety focus, Gränges contributes to a sustainable society. Gränges works to improve the conditions in all parts of its value chain. Through participation in industry initiatives, Gränges works to ensure that aluminium is mined, produced and used sustainably.

Gränges has comprehensive routines and guidelines for its purchasing, to ensure traceability and responsible use of resources in the entire supply chain. 

Gränges’ products increase the efficiency of customers’ production processes, as well as the performance of the end-products. In this way Gränges contributes to more sustainable products for customers and improve their customers’ competitiveness.