Alleima is increasing its capacity for application tubing products, such as heat exchanger tubes, through an investment of approximately SEK 250M in a new cold-finishing facility in Zhenjiang, China.
The greenfield facility will have more than 10,000 square meters of floor space and will be built on the existing Alleima site in Zhenjiang, China. Operations will ramp up from 2025, adding cold-finishing capabilities to meet the growing demand for heat exchangers, composite tubes, and other application tubing products, mainly to the Chemical and Petrochemical segment in China. The facility will also have the capabilities to produce hydrogen tubes supporting the build-out of Chinese green hydrogen infrastructure.
The Chemical and Petrochemical segment is one of the targeted segments in Alleima’s profitable growth strategy. The offering consists of a premium portfolio of application tubing products used in chemical plants for the production of chemical compounds, which are expected to grow driven by increased global consumption. Alleima had revenues of SEK 3,803M in Asia, of which SEK 1,744M in China during 2022.
The investment will be carried out during a three-year period and capex guidance of approximately SEK 800M for the full year 2023 remains unchanged.