The Hindu Business Line : Hindalco-Almex to make large billets at Aurangabad

Pune May 30 Hindalco-Almex Aerospace, a joint venture between Hindalco and Almex Inc US, is putting up a project to manufacture large sized billets of high strength aluminium alloys in the Aluminuim SEZ at Shendra near Aurangabad.

Construction work on the project, which involves a financial outlay of Rs 155 crore in two phases, has begun on a 20-acre plot of land, a company spokesperson said. The plant will have an initial installed capacity of 23,000 tonnes, which will be raised to 46,000 tonnes in the second phase of the project. Production is expected to begin in March 2008.

Though Hindalco already manufactures billets of similar copper and zinc alloys, this will be first project in the country for the manufacture of 42" diameter billets. With major applications in the aerospace industry, nearly 90 per cent of the production at Aurangabad will be for the overseas market.

Eyes Rs 450-cr revenues

According to the spokesperson, tier-II vendors for Airbus Industrie and Boeing were amongst the customers for the billets. Though domestic demand is currently limited to the Vikram Sarabhai Space Centre, it is expected to grow with the growth of the aerospace industry in India. As per present projections, revenues of around Rs 450-500 crore will be generated one year into production.

Hindalco Almex Aerospace is a joint venture between Hindalco, the flagship of the Aditya Birla group, and Almex Inc USA, a technology supplier and equipment manufacturing company based in Los Angeles, California.

The former has a 70 per cent equity participation in it, while the overseas partner, who is providing the technology for the venture, holds the remaining 30 per cent.

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