Investments and acquisition become prime strategies to meet rising aluminum extrusion demand

The demand for sustainable aluminum extrusion has grown significantly among customers across the globe. Taking the increase in demand into consideration, market players operating in the aluminum extrusion market have taken necessary steps meet the demand. Two major steps include investments in innovative technologies and acquisition of firms. New investments have been made to develop automated systems for extrusion processes with an aim to add high value to customers, lower down environmental impact, and generate cost savings. Companies have been continuing to invest in technologies, expanding existing production capacity, and improve overall operational efficiency. In addition, acquisition of production facilities becomes another crucial strategy for expanding global footprint and serving increasing customers. The demand for aluminum extrusion is expected to grow in the coming years. According to the report published by Allied Market Research, the aluminum extrusion market is expected to reach $118.7 billion by 2027. Following are some of the activities going across the world.

Investment into automated machinery is one of the best strategies to scale up production and serve customers faster than before. Determining the importance of adding value added products for customers and improve efficiency of operations, Vimetco Extrusion decided to invest €10 million in automated machinery for aluminum extrusion. This company is a downstream subsidiary of a Romanian aluminum producer ALRO S.A. The new line of extrusion will extrude aluminum of up to 60 meters, and the rate of extrusion is 50 meters per minute.  Italy’s Presezzi Extrusion spa would produce the machinery that would consists of energy saving system and independent water- and air-cooling zones. The company believes highly value-added products can be developed through investments in innovative technologies. The new investment is in line with the long-term vision of the company of becoming efficient, customer-oriented, and sustainable business.

Market players also invested in improving its production capacity through expanded facilities. Profile Precision Extrusions (PPE) built a new 100,000-square-foot facility that two-folded its recent production capacity. The complex miniature aluminum extrusion manufacturer from Phoenix, Arizona expanded its facility to serve growing customer base from healthcare to aerospace sectors. Loren Larson, the General Manager at PPE, highlighted that the company is committed to invest in the business as the demand increases.

Along with new investments, acquisition is one of the major strategies adopted by market players. This strategy helps in improving the global footprint, generating revenues, and achieving growth. Ball Corp., a Colorado-based company, acquired Brazilian aluminum extrusion plant Tubex Industria E Comercio de Embalagens Ltda. The company acquired the company from Sao Paolo in a deal worth $80 million. This acquisition includes “associated contracts and other related assets.” The plant consists of eight aluminum extrusion aerosol can lines. This facility produces personal care packaging for local and worldwide customers. John A. Hayes, the Chairman, President, and CEO, at Ball Corp. outlined that this acquisition helps the company to expand its reach across the globe and serve the expanding customers.  This plant is expected to become a part of aluminum aerosol packaging division of Ball Corp. and join its aluminum aerosol and slug businesses across North America, Europe, and Asia-Pacific.

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