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AluChem is a leading North American manufacturer of specialty alumina, with a production capacity of 60,000 tons across three advanced facilities in Ohio and Arkansas.
Hindalco Industries acquires AluChem for $125 mln.
Hindalco Share Price: Shares of Hindalco Industries, the metals flagship of the Aditya Birla Group, are in focus on Wednesday, following the announcement to acquire 100% equity stake in US-based AluChem Companies, Inc. for an enterprise value of USD 125 million. The acquisition, to be executed through its step-down subsidiary Aditya Holdings LLC, marks a strategic expansion in Hindalco’s high-value specialty alumina portfolio.
AluChem is a leading North American manufacturer of specialty alumina, with a production capacity of 60,000 tons across three advanced facilities in Ohio and Arkansas. The company is known for ultra-low soda calcined and tabular alumina, used in sectors like electric mobility, semiconductors, ceramics, and industrial refractories.
“This acquisition is an important step in our global strategy to build leadership in value-added, high-tech materials,” said Kumar Mangalam Birla, Chairman, Aditya Birla Group. “It accelerates our innovation-led, sustainable growth ambitions.”
Hindalco’s specialty alumina business has delivered double-digit growth in recent years and is positioned as a high-margin vertical. With demand rising in clean-tech and precision engineering sectors, the deal will strengthen Hindalco’s R&D capabilities and market reach.
Satish Pai, Managing Director of Hindalco, said, “AluChem’s advanced chemistry capabilities and market presence in North America significantly enhance our ability to serve critical sectors. This is a key step in our downstream value-added strategy.”
Saurabh Khedekar, CEO of Hindalco’s Alumina Business, noted that the deal offers immediate synergies in market access and product innovation. The company aims to scale up specialty alumina capacity from 500,000 tons to 1 million tons by FY30.
The transaction is expected to close in the upcoming quarter, subject to regulatory approvals.
On Tuesday, Hindalco Industries shares settled on a higher note at Rs 668.20 apiece with a gain of 1.03 per cent. The scrip opened at Rs 668.80 apiece, against the previous day close at Rs 661.40 apiece.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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