Hindalco, the Aditya Birla Group company and the US-based Almex Inc have entered into a joint venture for manufacturing high-strength aluminium alloys which are to be used in aerospace and surface transportation industries.
Headquartered in Los Angeles, Almex, is a technology supplier and equipment manufacturing company. The joint venture is to be named `Hindalco - Almex Aerospace Ltd. The Indian company will have 70 per cent equity participation in the joint venture. The company has not given further details of the equity base of the joint venture company. Mr Kumar Mangalam Birla said, "We are aggressively ramping up our portfolio of value added products. Getting into high strength alloys is a part of our strategic growth initiative. About 80 per cent of our products are value added; we expect to scale this up, going forward." A high proportion of the new companys output will be marketed overseas. The joint venture envisages a capital outlay of Rs 155 crore at a production level of 46,000 tonnes. The location of the manufacturing facility is yet to be finalized. The volume is likely to be reached in phases over three to four years.