Athira Sethu
Kochi, 7 Sep 2026
Hindalco Industries has called off its plans to buy speciality alumina manufacturer in the US for $125 million.
The plan was originally made in June 2025. But the deal encountered delays in the process of completion. Both Hindalco and AluChem have mutually decided to terminate the deal.
According to a regulatory filing made by Hindalco, the reason for termination was that there were delays in closure of the deal which were out of the control of the companies.
The acquisition was expected to happen through the subsidiary of Hindalco named Aditya Holdings LLC. Through this deal, Hindalco would gain AluChem’s speciality calcined and tabular alumina business.
Hindalco’s Speciality Alumina Plans Unaffected
Despite the termination of the AluChem deal, Hindalco still plans to expand its speciality alumina business according to the company.
It is looking forward to having a greater concentration on speciality and technology-based products. Hindalco continues to explore various acquisition and business opportunities in the US and other locations.
Currently, Hindalco is having about 500,000 tonnes of speciality alumina production capacity. The company plans to increase the capacity to 1 million tonnes by FY30.
Hindalco is among the major specialty alumina producers in India with more than 120 grades of alumina.
Some of the uses of specialty alumina include ceramic, refractory, battery, electronics, railway, wires & cables, water treatment and chemicals.
It was expected that the acquisition of AluChem will enable Hindalco to enhance its position in the US and develop specialty alumina business.
AluChem will Operate Independently
Now that the deal has been scrapped, AluChem will operate as an independent company.
The company has been in business in the specialty alumina industry for 48 years. They are manufacturers of specialty alumina products like calcined and tabular grades.
Had the acquisition been successful, Hindalco would have acquired a well-established business in the North American specialty alumina market.
The Deal Has Been Pending for Over a Year
The Hindalco company announced the proposed acquisition deal on June 24, 2025. According to the Hindalco, the deal would be an opportunity for the company to have an access to premium speciality alumina products.
However, the deal has been pending for over a year due to various delays in the process of satisfying the necessary conditions and approvals.
It is important to note that Hindalco has made it very clear that terminating the AluChem deal does not imply the company’s disinterest in speciality alumina products.
The company intends to look for more deals and growth opportunities in the US and other regions as part of the strategy to expand its value-added businesses.
