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Emirates Global Aluminium (EGA) is set to acquire 80% stake in American aluminium recycling firm Spectro Alloys Corporation as it looks to expand into recycling and into the United States.
EGA, one of the world's largest aluminium producers, and Spectro Alloys have signed an equity purchase agreement and the transaction is expected to close during Q3 2024. The value of the acquisition, which is subject to regulatory approvals, was not disclosed.
Spectro Alloys, a secondary foundry alloy producer based in Minnesota, 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," according to a statement.
The current owner-managers will retain a 20% shareholding.
Market analysts expect global demand for recycled aluminium to double by 2040. Recycled aluminium is expected to account for around 60% of the growth in global aluminium supply between now and 2030.
In May, EGA acquired European specialty foundry Leichtmetall, and late last year EGA began construction of the UAE’s largest aluminium recycling plant.
EGA is jointly owned by Abu Dhabi sovereign investor Mubadala and Investment Corp of Dubai, the principal investment arm of the government of Dubai.
The company has smelters in Abu Dhabi and Dubai, a bauxite mine in Guinea and a specialty foundry in Germany.
(Writing by Brinda Darasha; editing by Daniel Luiz)
