Gränges focuses on increased capacity

Gränges focuses on increased capacity The Board of Directors of Gränges AB has decided upon two large investments in order to strengthen the Group's competitiveness and market presence. The investments, amounting to MSEK 400 over a three-year-period, give an increased production capacity for both extrusions as well as aluminium heat transfer strip. "The decisions are in line with the Group's ambitions to expand. Our growth target of 10-15 percent a year shall be achieved through a combination of organic growth and acquisitions. These investments are of large importance in order to strengthen our positions within extrusions and aluminium heat transfer strip", says Staffan Bohman, CEO of Gränges. Gränges' strategy to expand in France Decision has been taken to install a second press line at the facilities outside Tolouse. This large press will give Sapa France access to new customer segments as well as a wider range of customer profiles. "Gränges has a clear ambition to expand within high value-added aluminium extrusions. The investment in Sapa France gives the Group a broader market presence. This will strengthen Sapa's position as one of Europe's leading suppliers of aluminium extrusions," states Claes-R. Simonson, EVP of Gränges. "Through these investments we will increase our market share from 12 to 16 percent. This is another big step towards being a major local supplier in southern Europe." Heat Transfer strengthens its position The investment in the rolling mill in Finspång will increase competitiveness, increase capacity as well as strengthen the internal efficiency. "We will be able to roll over 90,000 tonnes of heat transfer strip and industrial products in year 2004 compared to today's 55,000 to 60,000 tonnes", says Torbjörn Browall, Business Area Manager Heat Transfer. "This will mean several hundreds of million SEK in increased net sales", continues Torbjörn Browall. Finspong Heat Transfer is Europe's leading company within manufacturing of thin, cladded aluminium strip. The strip can be used in chargers, condensers and evaporators in cars. For further information please contact Staffan Bohman, CEO of Gränges, tel +46 8 459 5910 or Cecilia Lager, IR & Communication, tel +46 8 459 5941. Gränges is an international industrial group focused on value-added products based on the light materials aluminium and plastics. The products range from extrusions, heat transfer material to components and systems in plastics to the transport industry. The group is one of Europe leading companies within its field serving the customer segments engineering, telecom, transportation and construction. Gränges is quoted on the OM Stockholm Exchange "A-list". Visit Gränges web site on the Internet: www.graenges.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/16/19991216BIT00450/bit0001.doc http://www.bit.se/bitonline/1999/12/16/19991216BIT00450/bit0002.pdf