Global trends

There are several global trends that impact Gränges' business. Gränges aims to capture the business opportunities created by these trends to generate sustainable profitable growth, manage risks and further strenghten the company's sustainability impact.

Resource efficiency and sustainability

The sustainability landscape is evolving rapidly where decarbonization and circular business models are key to a sustainable economy. It will require a transition to more sustainable energy sources, new material technologies and an increased degree of recycling. Sustainable materials which can improve resource efficiency are a key enabler of sustainable development.

Opportunities and risks
  • Increased growth for aluminium driven by a global focus on a sustainable development.
  • Reduced climate impact from raw materials and supply chains are key to decarbonization.
  • Increased focus on responsible supply chains and traceability to verify sustainability claims.
  • Increased demand for recycling and circular business models.
  • Sustainability is a key criteria for investments, financing, purchasing, and product development.
Gränges’ actions
  • Develop and commercialize sustainable aluminium products and solutions.
  • Maximize the sourcing of aluminium scrap and low-carbon primary aluminium.
  • Increase energy efficiency and use of renewable energy in own operations.
  • Increase collaboration in the value chain, both up- and downstream.
  • Ensure responsible and sustainable sourcing.

Electrification of transportation

Electrification is currently the most important trend impacting the transportation industry.It is reshaping supply chains, vehicle designs and the automotive companies themselves. The electrification is driven by the acknowledgement of the environmental benefits of electric vehicles. Increasing demand for electric vehicle batteries drives demand for rolled aluminium for lithium-ion battery cathode foil and casing. Moreover, thermal management of batteries and other components is critical for the reliability and safety of electric vehicles, which is a condition for acceptance by consumers.

Opportunities and risks
  • Increased development of products and applications for electrified transportation solutions.
  • Increased demand for batteries and rolled aluminium used as battery cathode foil and battery casing.
  • Continued demand for light weighting of the car body and structure.
  • New value chains and players in the automotive industry.
Gränges’ actions
  • Strengthen capabilities to leverage the technology shift and capture opportunities from electrification of transportation.
  • Leverage competence in the heat exchanger value chain to strengthen and build new business in the thermal management market.
  • Leverage Gränges’ research and innovation competence to create new business opportunities.
  • Extend and broaden collaborations and develop new types of partnerships.

Digitalization and automation

The digital transformationhas an impact on all parts of the value chain. The transformation enables more efficient operations, faster development cycles, optimized inventories, strengthened customer relationships and better use of resources. It also changes the way companies go to market and interact with customers.

Opportunities and risks
  • Enables more efficient operations, product development and integrated supply chains.
  • Enables new ways of interacting with customers and other stakeholders.
  • New value adding services as well as differentiation.
  • Cyber threats are increasing rapidly.
Gränges’ actions
  • Upgrade and integrate IT-infrastructure and plant equipment to enable smart manufacturing and improved productivity.
  • Apply advanced data analytics to optimize for example production, sustainability and quality.
  • Ensure sharing of best practices and valuable know-how across the organization.
  • Focus on cyber security as one of Gränges’ top priority areas within digitalization.

Economic and political development

Macro factorssuch as cyclical market conditions, trade policy and emission regulations influence global companies such as Gränges. Presently the dominating megatrend is the ongoing regionalization of supply chains, driven by trade regulations, demand for more resilient and shorter supply chains, as well as sustainability. Regionalization is having a direct impact on the competitive position of Gränges in the different markets.

Opportunities and risks
  • Optimization of supply chain through global presence in different regions.
  • Economic and political development is requiring stronger partnerships with customers.
  • Change in market conditions.
Gränges’ actions
  • Leverage Gränges' global presence and decentralized business ownership to meet increasing regional demand, especially in Europe and North America.
  • Broaden sustainable product offerings and solutions.
  • Enter new niche markets and optimize allocation of current capacities in different regions.
  • Develop and create new business in thermal management, electrified transportation, new rolled products niches, and new materials technology.
  • Further develop medium to long-term plan for capacity and capabilities to align with future market conditions.