UAE’s EGA to acquire US recycled aluminium firm Spectro Alloys

Emirates Global Aluminium (EGA), one of the world’s largest aluminium producers, said on Thursday that it plans to acquire a majority stake in American aluminium recycling firm Spectro Alloys.

EGA plans to acquire 80 per cent of Spectro Alloys, with current owners retaining a 20 per cent shareholding in the aluminium recycling firm.

The acquisition is expected to bolster EGA’s presence in the US and expand its aluminium recycling portfolio.

“EGA is the biggest ‘premium aluminium’ producer in the world and our goal is to grow further in both primary and recycled aluminium to meet the growing global demand for a metal which is essential for our world’s sustainable future,” said Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium.

“This acquisition will significantly grow our business and expand our offering to customers with domestic production in the US.”

We are accelerating our strategic global recycling expansion with the acquisition of a majority stake in Spectro Alloys, a leading US secondary foundry alloy producer. Spectro Alloys has a low-carbon production capacity of approximately 110 thousand tonnes per year of aluminium… pic.twitter.com/9xUvwvldKX

— Emirates Global Aluminium (@egaofficial) August 22, 2024

The transaction is expected to close during the third quarter of 2024, subject to regulatory approvals.

Founded in 1973, Spectro Alloys has a production capacity of around 110 thousand tonnes per year of aluminium ingots, with a carbon intensity of less than one tonne of CO2 equivalent per tonne of aluminium produced.

The Minnesota-based firm broke ground on an expansion project at its Rosemount site that will add approximately 55 thousand tonnes per year of secondary billet production capacity in the first phase, which is expected to be completed in 2025.

The company currently supplies more than 125 customers, and half of its production is used in the automotive sector. Spectro Alloys sources aluminium scrap from more than 250 scrap suppliers and uses advanced sorting and analysis technology to produce the wide variety of alloys required by its customers.

EGA grow recycled aluminium portfolio

EGA completed the acquisition of German aluminium recycling firm Leichtmetall Aluminium in May after it commenced the construction of the UAE’s largest aluminium recycling plant late last year.

The new facility will supply local and global markets with low-carbon metal under the product name RevivAL.

The UAE’s largest industrial company, which is co-owned by Abu Dhabi’s Mubadala Investment Company and Dubai’s ICD, launched its green finance framework in June to support decarbonisation projects and initiatives that contribute to the transition to a low-carbon economy.

Global demand for recycled aluminium is projected to increase by double its current rate by 2040, contributing significantly to aluminium supply growth. It’s projected to account for nearly 60 per cent of the total supply increase between now and 2030 and around 70 per cent of the growth between 2030 and 2040.

Read: EGA to acquire German recycled aluminium firm Leichtmetall