Alfa Laval increases investments to further support global energy transition

Rhea-AI Summary

Alfa Laval is investing SEK 3.8 billion to expand production capacity for heat exchangers at facilities in location value="LC/se"Sweden, location value="LC/it"Italy, location value="LC/cn"China, and the US. This decision, announced on Feb. 1, 2023, aims to meet rising demand during the global energy transition, particularly in sectors like hydrogen, heat pumps, and data centers. The CEO, Tom Erixon, highlighted the strong demand for their products despite economic volatility. With 17,900 employees and annual sales of SEK 40.9 billion in 2021, Alfa Laval is committed to sustainability and process optimization.

Positive

• Investment of SEK 3.8 billion indicates confidence in future growth.
• Expansion supports production for hydrogen, heat pumps, and data center markets.
• Addressing demand imbalances observed in previous years.

Negative

• None.

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Alfa Laval is expanding production capacity for heat exchangers in Sweden, Italy, China and the US as part of an increased investment program.

LUND, Sweden, Feb. 1, 2023 /PRNewswire/ -- Today Alfa Laval has decided to invest SEK 3.8 billion in a capacity expansion program for heat exchangers. The investment will go towards increasing production, distribution and service capacity at four existing Alfa Laval sites in Sweden, Italy, China and the US. The decision to increase capacity investment is based on increased demand to support customers in the ongoing global energy transition.

"Although the global economy continues to be volatile, we see strong demand for our products in energy-related applications, both in the traditional supply and in new and growing areas such as hydrogen, heat pumps and data centers," says Tom Erixon, President and CEO of Alfa Laval. "Last year we took the decision to increase capacity to address parts of the demand imbalances, and now we see additional growth opportunities. Today's investment announcement is a result of that."

This is Alfa Laval

Alfa Laval is a world leader in heat transfer, centrifugal separation and fluid handling, and is active in the areas of Energy, Marine, and Food & Water, offering its expertise, products, and service to a wide range of industries in some 100 countries. The company is committed to optimizing processes, creating responsible growth, and driving progress to support customers in achieving their business goals and sustainability targets.

Alfa Laval's innovative technologies are dedicated to purifying, refining, and reusing materials, promoting more responsible use of natural resources. They contribute to improved energy efficiency and heat recovery, better water treatment, and reduced emissions. Thereby, Alfa Laval is not only accelerating success for its customers, but also for people and the planet. Making the world better, every day.

Alfa Laval has 17,900 employees. Annual sales in 2021 were SEK 40.9 billion (approx. EUR 4 billion). The company is listed on Nasdaq Stockholm.

  www.alfalaval.com

For more information please contact:
Johan Lundin 
Head of Investor Relations 
Alfa Laval  
Tel: +46 46 36 65 10 
Mobile: +46 730 46 30 90

Eva Schiller
PR Manager
Alfa Laval
Tel: + 46 46 36 71 01
Mobile: +46 709 38 71 01

The following files are available for download:

https://mb.cision.com/Main/905/3707381/1821002.pdf

PR_CPX_230201_ENG_F

View original content:https://www.prnewswire.com/news-releases/alfa-laval-increases-investments-to-further-support-global-energy-transition-301736271.html

SOURCE Alfa Laval

FAQ

What is the purpose of Alfa Laval's SEK 3.8 billion investment?

The investment aims to expand production capacity for heat exchangers to meet rising demand during the global energy transition.

Which countries are included in Alfa Laval's production expansion?

The expansion includes facilities in Sweden, Italy, China, and the US.

What markets is Alfa Laval targeting with its new investments?

Alfa Laval is focusing on energy-related applications, particularly hydrogen, heat pumps, and data centers.

When was the investment announcement made by Alfa Laval?

The announcement was made on February 1, 2023.

What is Alfa Laval's annual sales figure as of 2021?

Alfa Laval reported annual sales of SEK 40.9 billion in 2021.