Alleima completes heat exchanger facility in Mehsana

Alleima, a leading manufacturer of high-value-added products in advanced stainless steels, special alloys, and industrial heating, started its expansion of its Mehsana manufacturing facility in India already in 2019. This new facility was completed recently and it will enhance capacity and capabilities of the production unit to produce advanced alloys in application tubing like heat exchanger tubes for critical applications in the Chemical and Petrochemical as well as the Renewable Energy segment.

India currently stands as a global economic bright spot, emerging as a key player across various sectors. This growth is driving a significant increased domestic demand for chemical and petrochemical products, the rapid transition towards renewables and an increased shift towards localization of manufacturing.

Alleima officially launched a state-of-the-art heat exchanger facility in its mill located in Mehsana, Gujarat. This new facility will enable Alleima to produce advanced alloys in heat exchanger tubing locally to meet the increasing demand for the high valued added tubes to 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 signifies a major milestone for Alleima in India, as with the completion of its Hydraulic and Instrumentation (H&I) facility earlier this year, the Mehsana mill has now completed its three-phase expansion in production capacity and infrastructure. The total investment between 2019-2023 amounts to 180 MSEK.

“The Mehsana Mill is an important facility in our journey towards increasing our footprint in India and in Asia. As part of our growth strategy, we are increasing 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 CEO of 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 a three-phase expansion for India, which included a cold finishing heat exchanger tube manufacturing line that opened in 2020, a H&I tubing factory in March 2023, and now this brand-new heat exchanger tube facility. This expansion will increase heat exchanger tube capacity and capabilities to produce advanced alloys positioning us to capitalize 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 Tube division at Alleima.

Alleima’s presence in India includes its regional headquarters in Pune with a sales office and an R&D center. The production of seamless tube and pipes occur in Mehsana, while the Hosur facility in Kanthal specializes in industrial heating wires and heating systems. Alleima’s revenues for India during 2022 was 613 MSEK (approximately 60 M USD and 5000 M INR (compare to 426 MSEK 2021)) Since 2022 the revenue has grown even stronger. This 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’, ‘Aatmanirbhar Bharat Abhiyan mission towards making India Self-relian ‘as we believe that they are essential for India’s economic development. We are committed to continue investing in India and collaborate 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 Alleima Tube division in the Asia-Pacific (APAC) region.