EGA acquires top European speciality foundry Leichtmetall
DUBAI, 13 days ago
The Emirati group had in March announced its intention to acquire Leichtmetall from Leichtmetall Holding, a subsidiary of an investment fund managed by Quantum Capital Partners.
The transaction has now cleared all required regulatory approvals and closing conditions.
EGA pointed out that its new German operation was a European speciality foundry that uses renewable energy to produce up to 30,000 tonnes per year of billets, with secondary aluminium as some 80 per cent of input material.
Leichtmetall produces hard alloys and larger diameter billets up to 1,150 millimetres, which are used to manufacture high-load-bearing extruded profiles and very large forged components.
Leichtmetall adds to EGA's existing business in Europe. EGA already exports over 600,000 tonnes of primary aluminium to the European continent each year and is a significant supplier for industries including automotive and construction.
Announcing the key takeover, CEO Abdulnasser Bin Kalban said: "I am pleased to welcome our new Leichtmetall colleagues in Hannover to EGA. Becoming part of the biggest 'premium aluminium' producer in the world will give Leichtmetall new strength for its customers and to grow."
"For EGA, today is an important early milestone in our drive to build an aluminium recycling business in Europe, where we are already a major primary aluminium supplier, and around the world," he stated.
Leichtmetall CEO Thomas Witte said: "This is an exciting moment for Leichtmetall, as we join forces with one of the biggest and most ambitious aluminium producers in the world and a major aluminium supplier in Europe."
"I am confident that as part of EGA, we will be able to serve our customers even better and develop our business further," he added.
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, and around 70% of supply growth between 2030 and 2040.
Aluminium is infinitely recyclable. Recycling aluminium requires 95 per cent less energy than making new metal, generating a fraction of the greenhouse gas emissions.
The acquisition of Leichtmetall is EGA's first major transaction since the company's formation a decade ago through the merger of Dubai Aluminium and Emirates Aluminium.-TradeArabia News Service
