EGA buys majority stake in US recycling firm Spectro Alloys
DUBAI, September 30, 2024
Emirates Global Aluminium, the largest ‘premium aluminium’ producer in the world, has announced the completion of the acquisition of a majority stake in American aluminium recycling firm Spectro Alloys Corporation.
Spectro Alloys is a leading secondary foundry alloy producer in the US, with some 110,000 tonnes of aluminium ingots production. The company is implementing an expansion plan at its Rosemount site that will add around 55,000 tones per year of secondary billets production capacity in the first, which is expected to be completed in 2025.
With this acquisition, EGA now has production on four continents, from bauxite mining to aluminium recycling.
Spectro Alloys adds significantly to EGA’s existing business in the United States with domestic metal production. The US was already one of EGA’s largest global markets. In 2023, the group sold approximately 550,000 tonnes of primary aluminium in the country.
Demand for recycled aluminium in the US is expected to reach some 7.6 million tonnes per year by 2033, according to CRU, an independent business intelligence organisation. The United States is currently the world’s second biggest recycled aluminium market.
EGA said it has acquired 80 per cent of Spectro Alloys, with the company’s owner-managers retaining a 20 per cent shareholding. Funding of the transaction is in accordance with EGA’s green finance framework which was announced earlier this year.
CEO Abdulnasser Bin Kalban said: "Aluminium is an essential material for the development of a more sustainable society, and demand for low carbon primary and recycled aluminium will grow significantly over the decades ahead. Developing a global business in recycling is a key strategic priority for EGA."
"We are taking rapid and decisive action, now with recycling operations in both the United States and Europe and our greenfield plant in the UAE progressing well. I welcome our new colleagues in Minnesota to EGA," he added.
Luke Palen, the President of Spectro Alloys, said: "Becoming part of EGA is an exciting new chapter in Spectro Alloys’ five decades-long journey. Its global resources and strength in marketing aluminium in the US will accelerate Spectro’s growth."
"We are now well-placed to develop even further as a leading recycling company, serving our customers even better, creating more job opportunities for people in Minnesota, and contributing to the production of aluminium products that are both environmentally responsible and Made in America," he added.
In May, EGA had acquired European specialty foundry Leichtmetall, and late last year EGA began construction of the UAE’s largest aluminium recycling plant.-TradeArabia News Service
