Hindalco announces plans for aluminium smelter expansion and downstream push

On January 27, the Mumbai-based Hindalco Industries Ltd, a flagship of the Aditya Birla Group, announced expansion plans worth INR 210 billion (USD 2.3 billion) for its aluminium smelter capacity at the Aditya Aluminium complex in Sambalpur, Odisha. This marks one of the industry’s largest recent investments aimed at a scale-up of the upstream production, as well as to reinforce the circular economy with downstream manufacturing self-reliance in India. 

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The announcement was made alongside the commissioning of a Flat Rolled Products (FRP) and battery-grade aluminium foil facility for INR 45 billion (USD 536 million). It is part of a broader ongoing growth capital expenditure (capex) programme in Odisha worth INR 370 billion (USD 4 billion) and aligned with the company’s overall national expansion plan valued at INR 550 billion (USD 6.1 billion). 

The smelter addition is expected to increase capacity by 3.6 lakh tonnes per annum, while the FRP and foil facility would contribute 17,000 tonnes per year of high-value downstream products. India’s first-ever battery-grade foil plant is designed to support up to 100 GWh of lithium-ion cell manufacturing capacity, catering to domestic demand in electric vehicles (EVs), energy storage and advanced manufacturing sectors. 

Also read: L&T strengthens aluminium footprint with major Hindalco orders in Odisha

According to Hindalco, these developments are expected to substantially reduce import dependence for flat-rolled aluminium by almost 40 per cent of current imports, allowing India to have a firm footing in the global aluminium value chain. The integrated facilities link upstream resources, viz., bauxite and alumina, with downstream high-grade products, supporting a fully-integrated aluminium ecosystem.

Sustainability objectives have been addressed by the investment, with a portion of the aluminium smelter’s power planned from round-the-clock renewable energy sources. Officials stated that the expansions are likely generate more than 15,000 new direct and indirect jobs, while existing operations in the state already employ around 23,000 workers. 

Image source: https://www.hindalco.com/

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