Hindalco to Acquire US-based AluChem Companies, Inc. for $125 mn
#Hindalco #Innovation #AdityaBirlaGroup #Manufacturing #Acquisition“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.”- Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group
June 2025 : Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, has announced a significant strategic move with the acquisition of a 100% equity stake in US-based AluChem Companies, Inc., a prominent manufacturer of Specialty Alumina. The acquisition, valued at an enterprise value of USD 125 million, will be executed through Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco.
This acquisition marks a crucial investment for Hindalco in the high-growth, high-margin specialty alumina vertical, a key pillar of its value-added strategy. Specialty alumina is increasingly vital for cutting-edge sectors such as electric mobility, semiconductors, and precision ceramics. This deal is set to propel Hindalco up the innovation curve, granting access to next-generation alumina applications and driving value-accretive growth.
Mr. Kumar Mangalam Birla, Chairman, Aditya Birla Group, commented on the strategic importance: “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.”
AluChem brings to Hindalco a strong North American presence with an annual capacity of 60,000 tons across its three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-established supplier of ultra-low soda calcined and Tabular Alumina, materials renowned for their exceptional thermal and mechanical stability crucial in high-precision mechanical components and energy-intensive industrial refractories. This marks Hindalco's first-ever entry into the low soda tabular alumina market.
Mr. Satish Pai, Managing Director, Hindalco Industries, added, “This acquisition marks a pivotal step in strengthening our capabilities in next-generation alumina applications. As alumina gains increasing relevance in critical and clean-tech sectors, AluChem’s advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets.”
Mr. Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries, highlighted the immediate synergies, including market access and product portfolio expansion, with plans to scale up production of ultra-low soda alumina products for a larger global market share.
Mr. Ronald P. Zapletal, Founder, AluChem Companies, Inc., expressed optimism about the partnership, stating, "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."
The transaction is expected to close in the upcoming quarter, pending customary closing conditions and regulatory approvals. Hindalco aims to double its specialty alumina capacity from the current 500,000 tons to 1 million tons by FY30.
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