Aditya Birla Group company Hindalco Industries has announced the acquisition of AluChem Companies, a United States-based specialty Alumina manufacturer. Hindalco has acquired a 100 percent stake in AluChem for $125 million.
In a statement, Hindalco said that the transaction will be carried out through Aditya Holdings, a step-down subsidiary of Hindalco Industries. The company said that the acquisition will be completed within a period of 2 to 4 months.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, said in a statement that the acquisition is an important step in their 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,” Birla added
AluChem’s specialty and what it brings to Hindalco
Founded in 2008, AluChem deals in specialty alumina and alumina products. The company has three manufacturing facilities in Ohio and Arkansas and an annual capacity of 60000 tonnes.
The company is known for supplying ultra-low soda calcined and Tabular Alumina. These materials are known for their expectation mechanical and thermal properties and are used in energy-intensive industries and precision mechanical components.
As per the exchange filings by Hindalco Industries, AluChem posted a turnover of $ 66,377,422 in calendar year 2024. Before that, the company posted a turnover of $62,763,640 and $68,419,825 in CY23 and CY22.
Adding to the importance of AluChem’s importance Satish Pai, Managing Director, Hindalco Industries, said that this acquisition marks a pivotal step in strengthening the company’s 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. Importantly, it deepens our high-value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness”, Pai added.