Mumbai, Maharashtra, India, Tuesday, October 31, 2006 -- (Business Wire India)
Hindalco today 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 Joint Venture is to be named HINDALCOALMEX Aerospace Limited. Hindalco has 70% equity participation, with ALMEX holding the balance 30% in the JV.
Says Mr. Kumar Mangalam Birla, 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% of our products are value added and we expect to scale this up, going forward?
Avers Mr. 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 as it does an exclusive band of global players in this high technology sector.
A high proportion of the new company's output will be marketed overseas. India currently has 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.
The Joint Venture envisages a capital outlay of Rs. 155 crores 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.
The Joint venture's registered office will be in Maharashtra. The location of the manufacturing facility is under finalization.
ALMEX is a renowned technology supplier and equipment manufacturing company, based in Los Angeles, California. Hindalco is India's leading Non Ferrous Metals Company, with a Turnover of over Rs. 11,396.50 crores and Net Income of Rs. 1,655.60 crores in the financial year 2005-06.
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