Granges halts its new joint venture plan with Mitsubishi Aluminium

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Granges halts its new joint venture plan with Mitsubishi Aluminium

Post by buzai232 » Fri Sep 07, 2018 5:39 am

Granges halts its new joint venture plan with Mitsubishi Aluminium

The Sweden-based anodised aluminium sheet price engineering and manufacturing company Granges has reportedly put on ice on its plan to form a new aluminium manufacturing joint venture in the United States with Japan’s Mitsubishi Aluminium Co. According to the report, the project is less attractive in current circumstances.

The company said in its statement on Friday, August 16, “Granges has decided to halt the plans for a joint venture in North America, as the project isn’t sufficiently attractive for Granges from a risk-reward perspective given the current circumstances.”

Although it did not specify what circumstances it was referring to though a Granges spokeswoman later said they were related to the feasibility of the project and nothing to do with the US tariffs on aluminium imports.

Pernilla Grennfelt, senior vice president for communications and investor relations, said “It doesn’t have to do with the market conditions...It’s more about the project itself,” without making further explanation.

The venture aimed to combine Granges’ and Mitsubishi Aluminium’s expertise in aluminium rolling and establish a new US production facility to manufacture advanced aluminium materials for brazed automotive heating exchangers for the North American and Mexican markets.

Last year, the company had already begun to gradually shift production of foil products for US customers from China to Sweden after the US imposed countervailing and anti-dumping duties on imports of such products from China.

The company is seeking exemptions as well to continue importing aluminium coil and aluminium sheet products from Europe to make products for American automotive clients.

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