Hindalco Industries Limited announced that it has acquired 100% equity shares in US-based AluChem Companies. The transaction value is fixed at $125 Million. The company plans to execute the deal through Aditya Holdings LLC. The company is a wholly-owned arm of Hindalco.
This is the first foray by an Indian company into the low-soda tabular alumina segment. With this, Hindalco could expand its footprint in precision-engineered, high performance industrial materials. Tabular alumina is a premium-grade alumina used in critical applications through refractories, ceramics, and advanced manufacturing.
With this acquisition, the company could be able to bolster its presence in the North American market while improving its specialty alumina portfolio. Hindalco’s specialty alumina business is a vital component of its value-added strategy. It has delivered consistent growth in double-digit over the recent years and emerged as a high-growth, high margin segment within the company’s portfolio.
As specialty alumina finds recent applications through cutting-edge sectors like semiconductor, precision ceramics, electric mobility, etc., this acquisition fuels up the innovation curve. This will enable access to next-generation alumina applications and value-accelerative growth.
With the acquisition of AluChem, Hindalco will have a significant presence in North America having an annual capacity of 60,000 tonnes across its three advanced manufacturing facilities Ohio and Arkansas.
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