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According to reports, due to reduced market attractiveness in current situation, Sweden Granges AB decided to shelve the joint venture with Mitsubishi Materials Corp., regarding the investment of aluminum company in the US.

It was understood that the joint venture project aims to combine the expertise of Granges AB and Mitsubishi Materials Corp. in aluminum rolling to establish a new company in the US, and provide advanced aluminum materials for automotive heat exchangers sold in North America and Mexico.

However, according to the risk-reward perspective, this project was not attractive to the company and had no connection with current market conditions, mainly for the project itself. The US tariffs were affecting Granges AB in different forms, so the company was seeking exemption from import tariffs to continue importing aluminum coils and aluminum sheet products from Europe to produce aluminum parts utilized for American cars.

On the other hand, after the US imposed double anti-tariffs on Chinese imports of aluminum foil, last year Granges AB began to gradually produce aluminum foil, which was transferred from China to Sweden.

Granges AB will continue to focus on developing North American market and investing US$110 million in previous plan, expand the business in Tennessee, US, and actively seek further cooperation opportunities.