Hindalco in JV with US-based Almex
: Aditya Birla group company, Hindalco, has entered into a joint venture partnership with Almex USA.
By PTI |
MUMBAI: Aditya Birla group company, Hindalco, has entered into a joint venture partnership with Almex USA, Inc, for the manufacture of high-strength aluminium alloys for applications in the aerospace, sporting goods and surface transport industries.
The JV is to be christened Hindalco-Almex Aerospace Limited in which Hindalco will hold 70 per cent stake and Almex, the remaining 30 per cent, a release issued here on Wednesday said.
A high proportion of the JV's output will be marketed overseas. India presently only has small demand for high-strength aluminium alloys but over time, the demand is likely to grow, as India's aerospace sector takes off.
Kumar Mangalam Birla, Chairman, Aditya Birla group, said that "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 initiative. Today, 60 per cent of our products are value-added and we expect to scale this up, going forward."
The JV 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 the next three-to-four years, the company stated.
Production is expected to commence in Q1 of 2008. The JV's registered office will be in Maharashtra and the location of the manufacturing facility is under finalisation.
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