On May 13 there was a fire in the newly built cold rolling mill currently under commissioning in Gränges’ production facility in Konin, Poland. No one got injured but the fire resulted in damage on production equipment. The outlook for the second quarter remains unchanged.
Since the damaged equipment is not yet taken into production, the current production capacity and short-term outlook of the Konin facility is not affected. Consequently, the current production level in Konin can be sustained. However, the volume ramp-up originally planned to be initiated in the second half of 2022, will be delayed to 2023. The event is covered by insurance. A more precise outlook will be provided in conjunction with the interim report for the second quarter.
Gränges’ outlook for the second quarter 2022 remains unchanged in relation to the information given in the interim report for the first quarter. The sales volume in the second quarter is expected to be lower than in the second quarter of 2021. Although market demand is anticipated to support a similar sales volume as in the second quarter of 2021, sales volume in Asia is expected to be negatively impacted by the COVID-19 lockdown in Shanghai.