Hindalco Industries announces Joint Venture with ALMEX, USA

Hindalco Industries Ltd has announced that on October 30, 2006 the Company 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 Joint Venture is proposed to be named "Hindalco - ALMEX Aerospace Ltd", in which the Company has 70% equity participation, with ALMEX holding the balance 30%.

ALMEX is a renowned technology supplier and equipment manufacturing company, based in Los Angeles, California.

The Joint venture’s registered office will be in the state of Maharashtra while the location of the manufacturing facility is under finalisation.

A high proportion of the new Company’s output will he 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.

Source : Equity Bulls

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