Value chain

Gränges’ value chain ranges from mines where bauxite is extracted to end-users of rolled aluminium products. Gränges works to improve conditions at all stages of the value chain, and takes responsibility for those areas of the value chain that fall under the control of the company.

1. Aluminium

Aluminium is Gränges’ main input material, and Gränges uses both primary aluminium and recycled aluminium. Gränges buys primary aluminium on regional markets, from nine different suppliers in China and Europa.

The ore to produce aluminium, bauxite, is extracted from bauxite mines. After mining, bauxite is refined into aluminium oxide, which is the input material for the production of metallic aluminium. Gränges strives to reduce the energy intensity of its products in two ways. At one hand by increasing the input of recycled aluminium and thus avoiding the input of energy intense primary aluminium. At the other hand by increasing the metal yield in the production process and the in-house remelting of the unavoidable production scrap. By in-house remelting of production scrap versus selling of scrap to third parties, Gränges avoids quality degradation and energy losses involved in transportation and handling of scrap.

Gränges works actively to improve traceability and responsible resource use for primary and recycled aluminium.

2. Gränges’ processes

Gränges’ processes transforms aluminium into products with a high added value. Efficient processes are critical for Gränges to achieve sustainable, long-term growth. As a result of efficient process improvements, Gränges has successfully reduced the company’s energy consumption per tonne of aluminium in the past three years.

3. Customers

Gränges’ material is used in products such as engine cooling products, climate control solutions, transformers and packaging. Gränges takes on its customers’ challenges and looks constantly for opportunities to apply its technical expertise. Aluminium from Gränges is found in the heat exchangers of half of the world’s cars that are manufactured today, and the prevailing trend is towards smaller and lighter heat exchangers. In cars, lower weight results in lower fuel consumption. Increased environmental requirements for stationary heat exchangers supports the shift from copper to aluminium, and Gränges has a strong position to capture opportunities in this respect.