Supply chain and materials sourced

In 2018 Gränges had approximately 2,200 suppliers globally. Of the total purchase value, Gränges Americas accounted for 46 per cent, Gränges Europe (including Gränges AB) 28 per cent and Gränges Asia 26 per cent.

In total, 143 suppliers – corresponding to 89 per cent of the total purchase value – were defined as significant suppliers*. Sourcing activities are mainly managed by the local procurement organizations and the supplier base is generally geographically close to the respective markets.

Approximately 85 per cent of the 2018 purchase value from significant suppliers was related to sourcing of direct materials: primary ingots, rolling slabs, alloying elements and recycled aluminium.

  • Primary aluminium (ingots and slabs): In 2018, Gränges sourced ingots and slabs from 17 suppliers globally, the largest purchase value from China, Switzerland, Sweden, the US and Norway. Ingots are sourced from commodity traders, where origin-labelled aluminium enables traceability to the smelter of origin.
  • Recycled aluminium: Gränges works actively to increase the volumes of sourced recycled aluminium. In 2018, Gränges used approximately 70.4 ktonnes externally sourced recycled aluminium in its global operations.

Sourced indirect materials accounted for around 15 per cent of the total purchasing value among significant suppliers. Important indirect purchasing categories were transport, utilities and services.

* Suppliers with a purchase value above 5 MSEK, 5 MCNY or 0.5 MUSD.