Aditya Birla Group Strengthens U.S. Manufacturing Footprint with Acquisition of Cargill’s Georgia Chemical Facility

Mumbai | June 6, 2025: The Aditya Birla Group has expanded its manufacturing presence in the United States by acquiring Cargill’s speciality chemical manufacturing facility located in Dalton, Georgia. This acquisition is a major development in the group’s global growth strategy and industrial diversification.

The acquisition was officially announced by the group on Thursday. It has been executed via Aditya Birla Chemicals (USA) Inc., a wholly owned subsidiary of Aditya Birla Chemicals (Thailand) Ltd.

On June 6, 2025, Aditya Birla’s stock price experienced a minor dip of 0.31%, closing around 224.50. Throughout the day, the shares traded between 223.49 and 225.11, remaining near the higher end of its 52-week range of 149.01 to 246.90. The stock’s consistent volume and a beta of 1.44 indicate moderate volatility, while a price-to-book ratio of 2.04 and a TTM EPS of 12.77 highlight the company’s strong financial fundamentals amid recent strategic moves.

Strategic Expansion into the U.S. Chemical Industry

Situated on a 17-acre site, the Dalton facility significantly enhances the capacity of Aditya Birla’s Advanced Materials business in the U.S. This move aligns with the group’s strategic objective of establishing a stronger industrial presence in the American market. With this development, Aditya Birla’s cumulative investment in the region has now crossed USD 15 billion.

Kumar Mangalam Birla, Chairman of the Aditya Birla Group, commented on the milestone:

“This acquisition represents Aditya Birla’s strategic entry into the U.S. chemicals industry, extending the business model of our other successful U.S.-based manufacturing entities like Novelis and Birla Carbon.”

Current Capacity and Expansion Plans

The Dalton facility currently operates with an annual capacity of 16,000 tonnes. The group plans to increase this capacity to over 40,000 tonnes within the next two years.

The facility will continue to produce a range of speciality chemicals including:

• Formulated resins
• Curing agents
• Reactive diluents
• Polyaspartic resins

These products are essential in industries such as marine, industrial coatings, and flooring, and are marketed under the following brands: CHEMCURE, ChemMod, Altor, Acme Shield, and ChemRes.

What Preceded the Deal

Global M&A Push in Chemicals & Carbon Black

Back in 2011, the Aditya Birla Group acquired Atlanta‑based Columbian Chemicals for USD 875 million—a move that nearly doubled Birla Carbon’s carbon‑black capacity from 1 Mt to 2 Mt and unlocked synergies of more than USD 50 million. That deal, funded with debt raised from global banks, provided critical access to North American and European markets, plus advanced R&D capabilities.

2024 Expansion into Advanced Epoxy Materials

In June 2024, Aditya Birla announced a USD 50 million investment for an advanced materials facility in Beaumont, Texas, aimed at manufacturing specialty epoxy systems for construction, automotive, aerospace, and renewable sectors.

These moves reflect a consistent theme: acquiring prime assets in the U.S. to complement global capabilities and boost long‑term competitiveness.

Future Focus on High-Growth Sectors

In the coming years, Aditya Birla intends to diversify the product range to serve rapidly growing industries such as:

• Automotive
• Renewable energy
• Aerospace

The company also aims to introduce patented chemistries that support the recycling of epoxy composites, applicable in areas like wind turbine blades, sports equipment, and pressure vessels.

Boosting Local Operations and Workforce

As part of the acquisition, 50 employees from the Dalton facility will now become part of the Aditya Birla Group. This reinforces the company’s operational footprint in North America.

Rajesh Balakrishnan, CEO of the group’s Advanced Materials business, stated:

“Establishing a local presence in the U.S. will enable us to serve regional customers more efficiently and collaborate closely to develop tailored solutions. We are excited to enhance this facility’s capabilities and broaden our product offerings.”

What the Dalton Acquisition Means for Aditya Birla’s U.S. Growth

Strategic U.S. Market Entry: Cargill’s decision to sell non-core chemical assets gave Aditya Birla a strategic opportunity to expand its U.S. footprint. Acquiring the Dalton facility strengthens its manufacturing base in the U.S., complementing existing sites like Novelis and Birla Carbon, and supports its larger plan to grow across North America.

Capacity Surge Plans: Dalton currently produces 16,000 tonnes annually. Aditya Birla plans to more than double this capacity to over 40,000 tonnes within two years, significantly boosting its ability to meet rising demand for specialty chemicals and enhance its competitiveness.

Expanding Product Ecosystem: Dalton manufactures specialty resins, curing agents, and polyaspartic resins under brands like CHEMCURE and ChemMod. These products serve industries such as marine and flooring, while also enabling entry into automotive, aerospace, and renewable energy sectors with advanced epoxy recycling technology.

Cost Efficiencies and Synergies: Following previous acquisitions like Columbian Chemicals, which generated USD 50 million in synergies, the Dalton acquisition is expected to deliver similar benefits through improved sourcing and logistics, positively impacting operational costs and margins.

Broadened U.S. Footprint: The deal adds 50 local employees to Aditya Birla’s U.S. operations, strengthening regional customer relationships, fostering collaborative product development, and enhancing its ability to tailor solutions to local market needs.

Future-Focused Sustainable Products: Dalton’s capabilities align with rising demand for sustainable materials, supporting eco-friendly products used in wind turbine recycling, sports equipment, and pressure vessels, positioning Aditya Birla for growth in green industrial technologies.

Future Outlook

This acquisition underlines Aditya Birla Group’s ongoing commitment to expanding its global presence in advanced manufacturing. It also reflects the group’s contribution to revitalising U.S. industry by investing in innovation, sustainability, and local employment.

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