End customer markets

Gränges has a leading global position in rolled aluminium materials. In the industry for rolled products for brazed heat exchangers Gränges has a clear market leading position, estimated at around 20 per cent globally. The automotive industry accounts for about half of Gränges’ sales. Stationary heat exchangers, transformers, and food packaging are additional end customer markets that have become significant parts of Gränges’ business after the acquisition of Norandas downstream operations in 2016.

The automotive industry

The automotive industry includes all types of vehicles, from light to heavy duty, as well as hybrid and electric vehicles. Demand for heat exchanger material is strongly linked to global vehicle production and the number of heat exchangers per vehicle, which tends to increase in line with requirements for improved performance and enhanced functionality. Brazed aluminium heat exchangers represent nearly 100 per cent of the market today. According to the international research firm IHS, global light vehicle production increased by 2.3 per cent (4.0) in 2017, while an average annual growth of 2.1 per cent is expected between 2018 and 2020. The production of electric vehicles is expected to grow, from low volume levels, by 40–60 per cent annually in the coming years, to reach a market share of around 18 per cent globally in 2021.

The stationary heat exchanger industry (HVAC)

HVAC (heating, ventilation and air conditioning) includes systems for heating and cooling, for instance in private houses, commercial premises, and industrial buildings. Stationary heat exchangers have a broad group of end users in industries such as the agricultural sector, retail, healthcare, manufacturing and property. Underlying growth factors for heat exchangers in HVAC, regardless of type, is construction investment, new regulations on energy efficiency, climate changes and economic growth. Brazed aluminium heat exchangers account for only a small share of the total market. Gränges is both a supplier of brazed and mechanically- assembled aluminium heat exchangers, with the strongest position in the Americas with close to 10 per cent market share.

Other end customer markets

Aluminium foil provides a complete barrier to light, oxygen, moisture, and bacteria. These properties make it ideal for food cartons and pouches. Semi-rigid containers are among the most versatile of all types of packaging and are widely used for pre-packaged foods, easily withstanding great differences in temperature from freezing to heating.

Another end market in North America is materials for transformers. A transformer is an electrical device used to increase or decrease the alternating voltages in electric power applications. It consists of two or more coils called windings, which are wrapped around a core. 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. The markets for semi-rigid containers and for transformer windings made in aluminium are expected to show stable annual growth.