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 floor space and will be built on the existing Alleima site in Zhenjiang in 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 capabilities to produce hydrogen tubes supporting the build-out of Chinese green hydrogen infrastructure.
The Chemical and Petrochemical segment is the targeted segment in Alleima’s profitable growth strategy. The offering consists of a premium portfolio of application tubing products used in chemical plants for production of chemical compounds, which are expected to grow driven by increased global consumption.
The investment will be carried out during a three-year period and capex guidance of approximately SEK 800M for full year 2023 remains unchanged.
