Trends and drivers

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

Resource efficiency and sustainability

A growing global population, urbanization and an expanding global middle class is putting pressure on the climate and the world’s natural resources, which will require a transition to more sustainable energy sources, material technologies as well as an increased degree of recycling. This leads to an increased demand for business models involving responsible supply chains, recycling and a circular economy. Sustainable materials which can improve resource efficiency are a key enabler of sustainable development.

Opportunities and risks
  • Increased demand for aluminium products driven by a global focus on sustainable development.
  • High focus on climate impact and water use.
  • Increased focus on responsible supply chains and on reducing the climate impact from supply chains.
  • Focus on recycling and circular economy. 
  • Sustainability becoming key criteria for investments, operations, purchasing, and research and innovation.
Gränges’ actions
  • Expand sustainable product offerings.
  • Increase circularity and recycling of aluminium.
  • Increase energy effciency in own operations.
  • Increase collaboration in the value chain to achieve higher traceability and supplier engagement.

Disruptive automotive technologies

Electrification, autonomous driving, connectivity and the sharing economy are reshaping businesses. The electrification is driven by consumer and regulator acknowledgement of the environmental benefits of electric vehicles. 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. The sharing economy leads to higher fleet utilization, resulting in new requirements for vehicle materials and design.

Opportunities and risks
  • New designs and material requirements in future transportation solutions.
  • Increased development of products and applications for electrified transportation solutions.
  • Increased demand for batteries.
  • New designs, materials, 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 lightweighting in transportation through aluminium and multi-material solutions.
  • Leverage competence in the heat exchanger value chain to build new business in the thermal management market.
  • Leverage Gränges’ research and innovation competence and create new business opportunities.
  • Extend and broaden collaborations and develop new types of partnerships.

Digitalization and automation

Digital transformation has an impact on all parts of the value chain. The transformation enables more ežcient 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
  • Enabling more efficient operations, product development and integrated supply chains.
  • Enabling new ways of interacting with customers and other stakeholders.
  • New value adding services as well as differentiation.
Gränges’ actions
  • Upgrade and integrate IT-infrastructure and plant equipment to enable smart manufacturing and improved productivity.
  • Apply advanced data analytics to optimize production, sustainability, quality, etc.
  • Expand Gränges' digital service offerings internally as well as externally.
  • Ensure sharing of best practices and know-how across the organization.

Economic and political development

Macro factors such as globalization, urbanization, cyclical market conditions, political governance, new trade legislation, emission regulations, technological development and digitalization influence global companies such as Gränges. Geopolitical tensions and trade frictions affect the global economy, putting strain on supply chains and disrupting the competitive landscape. Outbreaks of pandemics, such as COVID-19, or other diseases, can affect economy and politics.

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. • Increased demand for aluminium material.
  • Technology shift enables new business opportunities.
Gränges’ actions
  • Leverage Gränges' global presence and decentralized business ownership to meet new requirements.
  • 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.