Hindalco Industries is set to buy US-based speciality alumina manufacturer Aluchem for $125 million.
AluChem has an annual capacity of 60,000 tons across its three manufacturing facilities in Ohio and Arkansas, USA.
The company is a supplier of ultra-low soda calcined and Tabular Alumina—materials, which are known for their thermal and mechanical stability in applications in mechanical components and energy-intensive industrial refractories.
The global specialty alumina market is projected to grow, with more demand for solutions in sectors such as ceramics, electronics, aerospace and medical applications.
Hindalco currently operates 500 thousand tons of specialty alumina capacity and aims to scale up to 1 million tons by FY30.
Mr. Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries, said: “The acquisition unlocks immediate synergies for Hindalco, including market access and product portfolio expansion.
"Hindalco plans to work with AluChem’s technology solutions and scale up production of ultra-low soda alumina products to drive larger global market share.
"The acquisition reinforces our ability to offer end-to-end alumina solutions that are both future-ready and customer-centric."
The acquisition will be carried out through Aditya Holdings, a wholly owned subsidiary of Hindalco Industries.
The transaction is expected to close in the upcoming quarter.
Hindalco Industries is the metals flagship of the Aditya Birla Group. A $28 billion metals powerhouse, it is the world’s largest aluminium company by revenue.