Date:02/11/2006 URL: http://www.thehindu.com/2006/11/02/stories/2006110201492000.htm

Business

Hindalco forms venture with Almex of the U.S.

Staff Correspondent

To produce high strength aluminium alloys

Hindalco to hold 70 p.c. in the JV

Initial outlay envisaged at Rs. 155 crore

MUMBAI: Hindalco has entered into a joint venture partnership with Almex of the U.S. to make high strength aluminium alloys for aerospace applications, sporting and surface transport industries.

According to a company statement, the joint venture is to be named `Hindalco-Almex Aerospace Ltd.' with Hindalco holding 70 per cent of the equity and Almex the balance 30 per cent.

The joint venture envisages a capital outlay of Rs. 155 crore at a production level of 46,000 tonnes. This volume is likely to be reached in phases over three to four years Production is expected to commence in the first quarter of 2008.

K. M. Birla, Chairman, Hindalco, said, "in line with our growth aspirations, we are aggressively ramping up our portfolio of value-added products. Getting into high-strength alloys is a part of our strategic growth initiative. Today, 60 per cent of our products are value-added and we expect to scale this up, going forward." A high proportion of the new company's output will be marketed overseas. India currently has a small demand for high strength aluminium alloys but over time, this demand is likely to grow as well, as India's aerospace sector takes off.

According to Debu Bhattacharya, Managing Director, Hindalco, "this is a great opportunity for Hindalco at a time when the aviation industry is slated to be on an upswing. Its foray in this segment catapults Hindalco into a different league joining an exclusive band of global players in this high technology sector."