Masterstroke by Kumar Mangalam Birla, decides to acquire THIS American company for Rs 10740692375, Birla Group now plans to…

Novelis and Aleris Corporation: Aditya Birla Group, India’s leading business conglomerate, is working relentlessly to expand its business. In a major development, the group’s company, Hindalco Industries, has decided to acquire the American company AluChem for USD 125 million (approximately Rs 10,740,692,375). It is important to note that this marks Hindalco’s third acquisition in the United States. Earlier, the company had acquired Novelis and Aleris Corporation. This deal will be executed through Hindalco’s subsidiary, Aditya Holdings.

Plan to Double Capacity in Five Years

AluChem produces 60,000 tonnes of specialty alumina annually. The company has its three plants in Ohio and Arkansas. The acquisition of AluChem will significantly strengthen Hindalco’s position in North America. Hindalco currently has a specialty alumina capacity of 500,000 tonnes. As per company’s future plans, it aims to double this capacity to 1 million tonnes by 2030. The market for specialty alumina is growing rapidly, with applications in sectors such as ceramics, electronics, aerospace, medical, electric vehicles, and semiconductors.

Here are some of the key details:

  • AluChem has a total of three manufacturing units in Ohio and Arkansas
  • AluChem has a combined annual capacity of 60,000 tonnes.
  • Kumar Mangalam Birla, Chairman of the Aditya Birla Group, described this acquisition as a significant step in Hindalco’s strategy to achieve leadership in high-tech materials.

He stated, “Our move into the specialty alumina sector will not only accelerate the growth of sustainable solutions for the future but also open up opportunities for high-impact growth.”

What is Specialty Alumina?

Specialty alumina is a highly purified form of aluminum oxide (Al₂O₃), manufactured through advanced processes. It stands apart from regular alumina due to its exceptional qualities, including superior purity, enhanced strength, and excellent chemical stability. It is tailored for use in various high-tech industries, including:

  • Ceramics: For producing strong and heat-resistant ceramic products.
  • Electronics: Used in semiconductors and electronic equipment.
  • Aerospace: For lightweight and durable materials.
  • Medical: In artificial bones and dental care.
  • Electric Vehicles: In batteries and other components.
  • Others: Such as chemical filters, coatings, and polishing materials.

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