Novelis Inc., the US-based aluminum producer owned by India's Hindalco Industries Ltd., agreed to sell two wholly owned Chinese subsidiaries for about $265 million as it pares its operations in the country.
Under a definitive agreement, the two units will be sold to Shenzhen Hongzhi Industrial Investment Co. or its affiliates, Hindalco said in an exchange filing Sunday. The consideration includes an additional $10 million earn-out if specified conditions are met.
The disposal comes amid a broader reassessment of China operations by some foreign manufacturers as local competition intensifies and global supply chains shift. Novelis is one of the world's largest producers of flat-rolled aluminum and a major supplier to the automotive, beverage-can and aerospace industries.
Hindalco, part of billionaire Kumar Mangalam Birla's Aditya Birla Group, said the two entities had $376 million of net sales in the financial year ended March 2026, representing about 1% of its net sales. The agreement was signed Nov. 14 and the transaction is expected to close within 12 months, subject to regulatory approvals, the filing showed.
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