Indian conglomerate Aditya Birla Group has agreed to acquire a manufacturing facility from Cargill Inc., its first entry in the US chemicals market.
The company will buy a 17-acre specialty chemicals plant in Dalton, Georgia, according to a statement. Financial terms of the deal weren’t disclosed.
Aditya Birla’s US growth strategy “is anchored in a commitment” that leverages “our deep manufacturing expertise to support the revitalisation of the growing American manufacturing sector,” Kumar Mangalam Birla, chairman of Aditya Birla Group, said in the statement.
The plant, which will continue to manufacture advanced materials including resins and formulated resins, has 50 employees.
One of the largest closely held companies in the US, Cargill is the world’s biggest agricultural commodities trader.
A representative for Cargill couldn’t immediately be reached for comment.
“Establishing a local presence in the US will enable us to serve regional customers more efficiently and collaborate closely to develop tailored solutions,” Rajesh Balakrishnan, chief executive officer of Aditya Birla’s advanced materials business, said in the statement.
The company has said it’s now invested more than $15 billion in the US. It also owns Novelis, which has a low-carbon recycling plant in Bay Minette, Alabama.
Birla is India’s 10th richest person with an estimated net worth of about $19 billion, according to the Bloomberg Billionaires Index.
Aditya Birla’s flagship company, Grasim Industries Ltd., has operations spanning building materials, financial services, textiles, chemicals and cellulose fibers.
The conglomerate’s units include cement maker UltraTech Cement Ltd. as well as aluminum producer Hindalco Industries Ltd. The group also has interests in consumer lending, asset management, retail, renewable energy and real estate.
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