Indian metal firm Hindalco has acquired a full stake in US-based alumina producer AluChem for $125mn, it announced on 24 June.
Aditya, Hindalco's wholly owned subsidiary, will carry out the acquisition. The transaction is expected to close in the third quarter, pending customary closing conditions and regulatory approvals.
AluChem is a specialty-alumina manufacturer with an annual capacity of 60,000t across its three manufacturing facilities in Ohio and Arkansas. It produces ultra-low soda calcined and tabular alumina for use in high-precision mechanical components and energy-intensive industrial refractories.
The acquisition will make Hindalco the first Indian company to enter the low-soda tabular alumina market.
Hindalco operates 500,000 t/yr of specialty alumina capacity and aims to scale up to 1mn t/yr by the 2030 fiscal year. The global specialty alumina market is expected to grow on the back of increasing demand from sectors including precision ceramics, electronics, semiconductors, aerospace, and medical applications, Hindalco said.
