Sapa focusing operations in China

After careful evaluation of its business in China, Sapa has decided to exit its Jiangyin plant and concentrate its operations in China to fewer sites to better serve the demanding customers in high value-add segments.

Sapa has since the inception of the joint venture undergone extensive restructuring of its global operations to better meet the market needs. After careful evaluation of its business in China, Sapa has decided to exit its Jiangyin plant and concentrate its operations in China to fewer sites to better serve the demanding customers in high value-add segments.

Sapa currently operates four production sites in China. During August production will be transferred from the Jiangyin plant outside Shanghai to Sapa’s other Chinese plants.

“We have decided to focus operations to the plants where we have the best capabilities to serve the more demanding markets segments and where we can provide added value to our customers,” says Keith Jones, executive vice president responsible for Sapa's Extrusion Asia business area.

To support the transfer, investments in a new press will be made at Sapa’s plant in Suzhou and in value-adding capabilities in Sapa’s fabrication plant in Shanghai. The assets of the plant in Jiangyin will be sold to Haihong Non-Ferrous Metal Company Limited, with effect of September 1, 2015. Production under Sapa management will continue at the site until mid-August.

“We are also making the expansions in Suzhou and Shanghai to better serve the growing automotive segment and this fits well with our over-all strategy for China,” says Jones.

The sale of the assets in Jiangyin will not have a significant impact on Sapa’s P&L and balance sheet.