Hindalco Industries Limited intends to establish a 34,000-tonne aluminium extrusion plant in Silvassa with an investment of INR 730-crore. The new facility will meet the demand for extruded aluminium products in the western and southern regions.
Commercial production at the facility is expected to begin in 24 months.
{alcircleadd}
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.”
Pai said, “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. Our focus on downstream assets is part of our Sustainable Business Model with an emphasis on further de-risking our business from LME volatility.”
The project is a part of its long-term downstream value-added strategy. Hindalco plans to construct a larger value-added product portfolio over the next few years.
The state-of-the-art Silvassa plant, which will have three extrusion presses, will be the first of its kind in India, Hindalco said. The facility will serve premium customers in the building & construction, auto & transport, electrical, consumer and industrial goods sectors.
Hindalco’s existing extrusion plants in Renukoot in Uttar Pradesh and Alupuram in Kerala cater mainly to the auto, defence, aerospace and industrial segments.
“The aluminium extrusion market in India is expected to grow exponentially – from the current level of around 373,000 tonnes to reach about 850,000 tonnes by 2030. The western and southern regions of the domestic market account for over 60 per cent of the extrusion market,” Hindalco said.
Responses
