Hindalco Industries Ltd, part of the Aditya Birla Group, has announced it will acquire 100% of US-based AluChem Companies, Inc, a leading producer of specialty alumina, for $125 million. The deal, which will be executed through Hindalco’s subsidiary Aditya Holdings LLC, marks a strategic expansion into the high-tech alumina sector.
This acquisition represents a significant move for Hindalco as it strengthens its portfolio in specialty alumina, a high-growth segment. The company’s specialty alumina division has seen consistent double-digit growth in recent years, emerging as a key contributor to its high-margin business. With alumina’s growing applications in industries like electric mobility, semiconductors, and precision ceramics, this acquisition will enhance Hindalco’s ability to innovate and lead in next-gen alumina technologies.
Kumar Mangalam Birla, Chairman of Aditya Birla Group, commented, “This acquisition accelerates our strategy to become a global leader in value-added, high-tech materials. Our entry into specialty alumina not only opens new growth opportunities but also reinforces our commitment to sustainable, innovative solutions and self-reliance in a rapidly evolving market.”
Satish Pai, Managing Director of Hindalco, added, “By bringing AluChem’s advanced technology capabilities into our fold, we strengthen our position in critical and clean-tech sectors. AluChem’s products will enhance our global competitiveness, driving profitability while expanding our high-value product range.”
AluChem operates three state-of-the-art manufacturing facilities in Ohio and Arkansas, with an annual capacity of 60,000 tons. Known for its ultra-low soda calcined and Tabular Alumina, the company serves high-precision applications in mechanical components and industrial refractories.
Saurabh Khedekar, CEO of Hindalco’s Alumina Business, said, “This acquisition will allow Hindalco to scale production of ultra-low soda alumina products, expand our market share, and enhance our portfolio of future-ready, customer-focused solutions.”
Ronald P Zapletal, Founder of AluChem, expressed excitement about the partnership, stating, “Hindalco’s resources and capabilities will enable AluChem to accelerate its growth, especially in North America. This partnership offers access to world-class sustainability practices, reliable raw material supplies, and an enhanced R&D pipeline, driving expansion beyond the region.”
The global specialty alumina market is expected to see significant growth, fueled by rising demand for specialized solutions across sectors like aerospace, electronics, and medical devices. Hindalco, which currently operates 500,000 tons of specialty alumina capacity, aims to expand to 1 million tons by FY30. The deal is anticipated to close in the next quarter, pending customary regulatory approvals.
Hindalco Industries, the metals flagship of the Aditya Birla Group, is a global leader in aluminium production, with an extensive portfolio in copper and specialty alumina. A $28 billion metals powerhouse, Hindalco operates across 10 countries and 52 manufacturing locations, with a strong presence in the flat-rolled aluminium market through its subsidiary, Novelis. It is also India’s largest producer of copper.
