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Business News/ Companies / News/  Hindalco announces resumption of aluminium capex cycle with new Silvassa plant
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Hindalco announces resumption of aluminium capex cycle with new Silvassa plant

Aluminium has been gaining ground as the preferred sustainable metal across these sectors as it is infinitely recyclable and enables industries to integrate circular economy models in their operations

Satish Pai, managing director of Hindalco Industries.Premium
Satish Pai, managing director of Hindalco Industries.

MUMBAI: Hindalco Industries has announced plans to set up a 34,000-tonne aluminium extrusion plant at Silvassa, in another round of capital expenditure by the Aditya Birla group. The proposed 730 crore unit is the first step towards reviving Hindalco’s downstream investment plan, which had been pushed back because of covid-19.

Satish Pai, managing director, Hindalco Industries, said, “We are seeing a revival in the economy, with demand picking in the building and construction and automotive sectors. This has given us the confidence to move forward. The Silvassa facility will enable us to service our customers faster, with an offering of high-end quality aluminium products."

The Silvassa plant will be fully-automated and will include three extrusion presses and will enable Hindalco to service premium customers in the building and construction, auto and transport, electrical, consumer and industrial goods sectors. Aluminium has been gaining ground as the preferred sustainable metal across these sectors as it is infinitely recyclable and enables industries to integrate circular economy models in their operations, the company said.

The aluminium extrusion market in India is expected to grow exponentially – from the current 3,73,000 tonnes to reach about 850,000 tonnes by 2030, a press release from Hindalco said.

Western and southern regions of the domestic market account for over 60% of the extrusion market. The Silvassa facility will allow Hindalco to serve customers in these regions with superior quality, faster service and shorter response times.

"Over the next few years, as part of our downstream strategy, we intend to enhance our capacity from over 300,000 tonnes currently, to more than 600,000 tonnes with investments of around 7,000 crore," Pai said. “Our focus on downstream assets is part of our sustainable business model with an emphasis on further de-risking our business from LME (London Metal Exchange) volatility."

Hindalco’s existing extrusion plants in Renukoot in Uttar Pradesh and Alupuram in Kerala cater mainly to auto, defence, aerospace, and industrial segments. The Silvassa facility will add an additional 34,000-tonne capacity with focus on the B&C segment which comprises over 60% of the extrusion market, apart from auto, transport and other segments. Commercial production at the plant is expected to start in 24 months.

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Published: 07 Dec 2020, 01:50 PM IST
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