In a significant move to solidify its position in Asia's burgeoning electrification market, a global leader in aluminium rolling and recycling in selected niches, Gränges has announced extending its long-term strategic partnership with Shandong Innovation Group (SIG). This collaboration aims to enhance Gränges' competitiveness and expand its market share in the region, which is rapidly becoming the global leader in electric vehicle and electrification applications.
Gränges has witnessed robust growth in demand for its high-quality, sustainable electrification solutions across Asia. The company's portfolio includes advanced battery casings, battery foil, cooling plates, and other essential components for electric vehicles. The extended partnership with SIG is expected to leverage this growing demand, allowing Gränges to penetrate the market further and continue its upward trajectory.
Asia's electrification sector is not just a current opportunity but a long-term potential for Gränges. With the strategic reinforcement of its alliance with SIG, Gränges is well-positioned to capitalise on the region's expanding electric vehicle market and maintain its competitive edge in delivering sustainable, high-quality electrification solutions. This strategic vision sets the stage for Gränges' future regional growth and success.
Under the new agreement, Gränges will acquire an efficient, low-cost casting and hot-rolling facility in Shandong province and scalable downstream capabilities. Additionally, the agreement grants access to a nearby supply of low-carbon recycled and primary aluminium. In exchange, SIG will receive shares in Gränges' Chinese subsidiary, representing 20 per cent of the total registered capital upon completion of the transaction.
Colin Xu, the President of Gränges Asia, said, “Strengthening the scale, efficiency and sustainability of our Asian supply chain is essential for our ability to gain further market share in low-carbon and circular aluminium solutions for the EV and battery markets. We are very pleased to take this next step with our trusted and valued partner, SIG.”
SIG, one of the world's leading manufacturers of cast aluminium products, has a long-standing business relationship with Gränges. This relationship includes a long-term supply partnership and a recently announced joint venture focused on sustainable aluminium products in Yunnan.
This equity transaction, which will be completed in approximately six months, is anticipated to have a marginal positive impact on Gränges' earnings per share starting in 2025. Importantly, this financial benefit is expected to be sustained over the long term, further solidifying the value of our partnership.
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