Alleima, a leading manufacturer of high–value-added products in advanced stainless steel, special alloys and industrial heating, has completed the final phase of the expansion of its Mehsana manufacturing facility in Gujarat, with the formal launch of a new heat exchanger tube factory. Now fully operational, the expansion of the factory had started in 2019. This new facility will enhance the capacity and capabilities of the production unit to produce advanced alloys for tubing, such as heat exchanger tubes for critical applications in the chemical and petrochemical as well as the renewable energy segments.
India is currently a global economic bright spot, emerging as a key player across various sectors. This growth is driving a significant increase in domestic demand for chemical and petrochemical products, a rapid transition towards renewables and an increased shift towards localisation of manufacturing. The new state-of-the-art heat exchanger facility will enable Alleima to produce advanced alloys for heat exchanger tubing locally, to meet the increasing demand for high-value-added tubes from India’s chemical and petrochemical, renewable, and other industrial segments. It will also serve as a production base for exports to other parts of Asia. This is a major milestone for Alleima in India, as, combined with the completion of its hydraulic and instrumentation (H&I) facility earlier this year, it signifies the completion of the three-phase expansion of Mehsana Mill’s production capacity and infrastructure. The total investment from 2019 to 2023 amounts to SEK 180 million.
“The Mehsana Mill is an important facility in our journey towards increasing our footprint in India and Asia. As part of our growth strategy, we are increasing our capacity to serve the growing market for our application tubing products. Today, we are one of the leading players in the premium segment, and we see an increasing demand driven by the infrastructure expansion of chemical and petrochemical plants, refinery expansions and the growth in the renewable energy segment. This investment will be a key enabler to maintain our position and for continued profitable growth in the region,” says Göran Björkman, president and chief executive officer, Alleima.
“Alleima’s Mehsana Mill plays a pivotal role in our expansion across Asia Pacific. In 2019, we embarked on a strategic initiative to enhance our capacity and capabilities in growth markets, culminating in a three-phase expansion for India, which included a cold finishing heat exchanger tube manufacturing line that opened in 2020, an H&I tubing factory in March 2023, and now this brand-new heat exchanger tube facility. This expansion will increase the capacity and capabilities of the heat exchanger tube to produce advanced alloys, positioning us to capitalise on the growth opportunities arising from India’s chemical and petrochemical industries over the next decade. It will also facilitate the transition to the renewable energy segments and enable us to capture the opportunities from the increased demand for locally manufactured products in India,” says Carl von Schantz, president of the tube division at Alleima.
Alleima’s presence in India includes its regional headquarters in Pune, with a sales office and a research and development centre. The production of seamless tubes and pipes occurs in Mehsana, while the Hosur facility in Kanthal specialises in industrial heating wires and heating systems. Alleima’s revenue from India during 2022 was SEK 613 million, compared to SEK 426 million in 2021. Since 2022, its revenues have grown further. India represents one of Alleima’s significant business operations globally. This expansion, marked by the new facility’s completion, will enable Alleima to increase its staff strength in India to close to 400.
“Alleima is committed to supporting the Government of India’s Make in India and Atmanirbhar Bharat Abhiyan towards making India self-reliant, as we believe that they are essential to India’s economic development. We are committed to continuing our investments in India and collaborating with our customers to propel India’s growth. This expanded Mehsana Mill will allow us to enhance our capabilities in application tubing for the chemical and petrochemical segment, and enable us to move into the renewable segments,” says Sharath Satish, President of the Alleima Tube division in the Asia-Pacific region.