Gränges completes strategic acquisition of Shandong Innovation Group in China

On October 25, 2024, Gränges announced the completion of a strategic acquisition in China, marking a milestone in its expansion and strengthening its footprint in Asia’s burgeoning electrification market. Agreed initially upon in May 2024 with Shandong Innovation Group (SIG), this acquisition secures Gränges, a state-of-the-art casting and hot-rolling facility in Shandong province.

This move significantly bolsters Gränges’ production capacity for high-demand electrification solutions, including battery casings, foil, and cooling plates—all essential for supporting global transitions toward sustainable energy.

The acquisition provides Gränges with scalable downstream capabilities and a reliable supply of low-carbon aluminium, aligning with its commitment to sustainability and resource efficiency. In exchange, SIG acquires a 20 per cent stake in Gränges’ Chinese subsidiary, enhancing both companies’ positions in the Asian market.

Financially, the acquisition will incur non-recurring costs of approximately SEK 30 million in Q4 2024. Still, the new facility is expected to contribute positively to sales volume within the same quarter, with adjusted operating profit projected to break even. By 2025, Gränges anticipates the transaction will contribute modestly to earnings per share after accounting for minority interests. This expanded partnership underscores Gränges’ commitment to growth, innovation, and sustainable manufacturing in the electrification industry.