Hindalco To Buy US-Based AluChem For $125 Million

Aditya Birla group's Hindalco Industries Ltd. on Tuesday said it will acquire US-based specialty alumina manufacturer AluChem Companies Inc. for an enterprise value of $125 million, or around ₹10.75 billion, as part of its plan to expand its global downstream portfolio.

The acquisition will be routed through Hindalco’s stepdown unit, Aditya Holdings LLC, and is expected to close within two to four months.

"This strategic acquisition marks a significant investment in specialty alumina, a key step in scaling its high-value, technology-led materials portfolio," the company said in a stock exchange filing.

The acquisition gives Hindalco access to AluChem’s three advanced manufacturing units in Ohio and Arkansas, with a total annual capacity of 60,000 tonnes. AluChem specialises in ultra-low soda calcined and Tabular Alumina, materials used in precision mechanical components and industrial refractories due to their high thermal and mechanical stability.

Currently, Hindalco operates 500,000 tonnes of specialty alumina capacity and is aiming to double that by 2029–30.