Swedish aluminum producer Granges expects sales to be slower in Q3 owing to sluggish auto demand. It also expects profits to drop due to its investments in new projects.
Granges is investing SEK100mn ($11.5mn) in cathode foil production to capitalize on growth in the electric vehicle battery market, expanding production by 10,000mt per year. It is also in the process of expanding cold-rolled coil production at the Finspang plant by 20,000mt annually, with the project set to be completed by mid-2022.
In the first half of this year, Granges sold 258,100mt of aluminum products, up 61pc from 160,700mt in the prior-year period. Excluding its acquired business, sales grew by 31pc to 209,900mt in the same period. Its H1 net sales accounted for SEK8.6bn over SEK5.2bn in H1 2020.
During Q2 2021, sales stood at 131,400mt, up 86pc from 70,800mt in the same quarter last year. Sales excluding acquisitions rose 51pc to 107,100mt in the same period under comparison.
Granges posted a net profit of SEK465mn in H1 2021 against SEK133mn in the prior year period. For Q2, net profits stood at SEK226mn.
($1=SEK8.71)