Hindalco Industries Ltd., the metal division of the Aditya Birla Group, stated that it has acquired a 100% equity position in AluChem Companies, Inc., a US-based company, for an enterprise value of $125 million. Aditya Holdings LLC, a step-down wholly-owned subsidiary of Hindalco, will carry out the transaction.
This greatly increases Hindalco's presence in precision-engineered, high-performance industrial materials and represents the first Indian company to enter the low-soda tabular alumina market. Premium-grade alumina known as tabular alumina finds use in sophisticated manufacturing, ceramics, and refractories. Through this acquisition, Hindalco expands its portfolio of specialized alumina and solidifies its position in the North American market. A vital component of Hindalco's value-added strategy, the company's industrial operations specialized alumina business has produced steady double-digit growth in recent years and has become a high-growth, high-margin vertical within its portfolio.
This acquisition moves Hindalco up the innovation curve by providing access to next-generation alumina applications and fostering value-accretive development as specialty alumina finds newer uses in cutting-edge industries including electric mobility, semiconductors, innovative technologies , and precision ceramics. With three state-of-the-art manufacturing facilities in Ohio and Arkansas, AluChem gives Hindalco a significant foothold in North America with an annual capacity of 60,000 tonnes.
The business has a long history of providing ultra-low soda calcined and tabular alumina, materials that are utilized in high precision mechanical components and energy-intensive industrial refractories because of their remarkable thermal and mechanical durability. Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, "This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials".
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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."
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