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Hindalco Industries to acquire US-based AluChem for $125 million

Hindalco Industries, part of the Aditya Birla Group, announced on Tuesday the acquisition of a 100 per cent equity stake in US-based AluChem for $125 million. According to an exchange filing, the deal will be executed through Aditya Holdings LLC, a step-down wholly owned subsidiary of Hindalco. The acquisition is expected to close in the next quarter, subject to regulatory approvals in the United States. AluChem produces high-grade specialty alumina AluChem manufactures specialty alumina—including calcined, reactive, and tabular grades—used in sectors such as refractories, ceramics, and electronics. It operates three production facilities in Ohio and Arkansas, with a combined annual capacity of 60,000 tonnes. In calendar year (CY) 2024, AluChem posted a turnover of $66.38 million, up 5.75 per cent from $62.76 million in CY2023. In CY2023, the company had seen an 8.26 per cent year-on-year decline from $68.42 million in CY2022. ALSO READ: Specialty alumina is a high-purity aluminium oxide used in advanced technical applications across semiconductors, lithium-ion batteries, electronics, and aerospace, due to its exceptional thermal, mechanical, and electrical properties. Hindalco aims to double specialty alumina capacity by FY30 Hindalco currently operates 500,000 tonnes of specialty alumina capacity and has set a target to scale up to 1 million tonnes by FY30. The business segment has shown consistent double-digit growth and contributes significantly to the company's high-margin revenue streams. Strategic rationale and leadership commentary '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,' said Satish Pai, Managing Director of Hindalco Industries. Ronald Zapletal, Founder of AluChem, welcomed the deal, stating: 'This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America.'