Hindalco Industries has bought US-based speciality alumina manufacturer AluChem Companies for $125 million.
The purchase, which was announced on 24 June, will be effected by Hindalco in its wholly owned subsidiary called Aditya Holdings. This transaction will be a major investment in specialty alumina and is a major milestone towards building Hindalco high value and technology driven materials portfolio.
According to Kumar Mangalam Birla, the head of the Aditya Birla Group, this deal is an essential move in their international strategy to become a leader in high-tech and value-added materials. The strategic entry into the specialty alumina business will not only help speed up the creation of future-ready, sustainable solutions but also provide new avenues to explore high-impact growth opportunities.
The purchase will open up new opportunities to Hindalco, as the consumption of specialty alumina is increasing in new areas including electric mobility and semiconductors. The US based company will also assist Hindalco in its expansion in North America with an annual capacity of 60,000 tons in three state of the art manufacturing units in Ohio and Arkansas.
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With the growing relevance of alumina in both critical and clean-tech markets, the advanced chemistry capabilities offered by AluChem will play a major role in boosting the capacity of Hindalco Industries to meet the needs of these fast changing markets, Satish Pai, managing director of Hindalco Industries, said.
