Mumbai: Aditya Birla Group’s flagship metals manufacturing company Hindalco has announced the acquisition of US-based AluChem Companies, which specialises in manufacturing low sodium tabular alumina. The acquisition, worth $125 million (Rs.1,075 cr) marks the first time an Indian company ventures into this niche segment, where these premium grade alumina materials are used in diverse applications in EVs, precision ceramics and semiconductors.
The deal is set to close within 2-4 months, pending regulatory approvals. This is Hindalco’s third US acquisition, after the $6 billion Novellis purchase in 2007 and the $2.8 billion Aleris purchase in 2020.
Currently, Hindalco has a capacity of over 500,000 tonnes of specialty alumina and aims to double it to 1 million tonnes by FY30. AluChem operates 3 advanced manufacturing facilities in Ohio and Arkansas. Prior to this acquisition, Hindalco’s alumina business delivered double-digit growth, on account on rising demand in clean-tech and precision engineering sectors. With this deal, Hindalco aims to supplement its market reach and R&D capabilities.
“This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials. Our strategic foray into the specialty alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses,”Kumar Mangalam Birla, Aditya Birla’s Group’s chairman, said in a press release
Mr. Ronald P. Zapletal, Founder, AluChem Companies, Inc., added, “This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America. Aluchem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.”
After the news was announced, Hindalco’s shares rose 1% in early morning trading on Wednesday, June 25.
