Alleima is increasing its capacity for electrical heating solutions in the Kanthal division, through an investment of approximately SEK 100 million in a new facility in Sakura, Japan.
The total investment of approximately SEK 100 million includes the development of a new facility near the Kanthal division’s current premises in Sakura, Japan. The expansion will increase production capacity of electrical heating solutions to the Industrial Heating segment in Japan by approximately 60%, with ramp up starting in 2025.
The global growth in lithium-ion batteries and semiconductors is a driver for an increased demand for Kanthal’s solutions for the Industrial Heating segment. In addition, a broad range of industries, such as steel and automotive, are looking to convert heating processes from fossil fuel to electric solutions, making the production more energy efficient whilst also lowering CO2 emissions. The aim is to capture mid- and long-term market growth in Asia.
“We invest in further capacity to cater to the growing demand of the Asian Industrial Heating customers. This investment aligns perfectly with our strategy for profitable growth”, says Göran Björkman, President and CEO of Alleima.
The investment will be carried out during a two-year period and capex guidance of approximately SEK 950 million for full year 2024 remains unchanged.
