Gränges announced establishing a joint venture with Shandong Innovation Group (SIG) on March 31, 2023, to construct a recycling and casting facility in the hydroelectricity-abundant province of Yunnan, China. This collaborative project, aligning with Gränges' commitment to sustainability, safety, and quality, has now obtained the essential approvals for its realization.
Jörgen Rosengren, the CEO of Gränges, said, “This is an essential step in our Navigate plan for sustainable growth. Partnering with SIG will bring us a big step closer to climate neutrality by 2040 and further increase our sourcing of sustainably produced metal and energy, ultimately creating more value for our customers.”
The joint venture has successfully secured access to environmentally friendly primary aluminium produced with energy-efficient methods from a nearby smelter. Additionally, it has acquired a reliable renewable energy source for its casting operations. The production is set to commence in the second quarter of 2024. Starting in 2025, Gränges Asia intends to gradually replace its existing in-house casting operations in Shanghai by transitioning to the equivalent capacity provided by the Yunnan operation.
As the joint venture reaches full production, it is anticipated to achieve an impressive 80 per cent reduction in carbon emissions intensity compared to the slabs currently in use. This substantial reduction in carbon emissions will significantly decrease Gränges Group's overall carbon footprint, meeting the rising demand from customers in Asia for sustainable and market-leading aluminium solutions.
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