Emirates Global Aluminium has announced its intention to acquire a majority stake in American aluminium recycling firm Spectro Alloys Corporation, a secondary foundry alloy producer in the United States.
Founded in 1973 and based in Rosemount, Minnesota, the company has a production capacity of around 110 thousand tonnes of aluminium ingots per year, it said. According to the aluminium recycling firm, the carbon intensity of this equates to less than one tonne of CO2 equivalent per tonne of aluminium produced.
EGA intends to acquire 80 per cent of Spectro Alloys, it said, while the current owner-managers will retain a 20 per cent shareholding.
EGA and Spectro Alloys noted that they have signed an equity purchase agreement, with the transaction expected to close in the third quarter of 2024, subject to obtaining regulatory approvals.
According to Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, the company’s goal is to grow further in both primary and recycled aluminium to meet the growing global demand for metal.
Luke Palen, President of Spectro Alloys, commented: “We have grown Spectro Alloys over the last five decades into one of the United States’ top aluminium recycling companies. By becoming part of EGA, the largest ‘premium aluminium’ producer in the world, we will unlock the next stage of our development in the fast-growing aluminum recycling industry.
“In the near term, this will allow us to accelerate our ongoing expansion project. In the long term, this is a big win for the future of aluminum recycling in the United States.”
This news follows an announcement in May that EGA had acquired the European specialty foundry Leichtmetall.
Prior to that, last year, it began construction of the UAE’s largest aluminium recycling plant.
