EGA reviews German recycling expansion after EU drops 15% aluminium scrap duty

Emirates Global Aluminium (EGA) has expressed concern over the European Union’s decision to drop a proposed 15 per cent export duty on aluminium scrap, saying the move could affect its plans to expand recycling capacity in Germany.

The EU withdrew the proposed duty earlier this month. The measure was intended to keep more aluminium scrap within the bloc, but concerns over its possible impact on the final signing of a free trade agreement with India contributed to the decision.

Pal Kildemo, EGA’s finance chief, said the company had already invested heavily in Europe to support higher aluminium recycling rates. He said "We put a lot of capital... on the ground to take part in ​the larger recycling rates in Europe. And when this becomes a part of bigger trade ‌politics, ⁠it's unfortunate for our industry." 

EGA recently completed the purchase of an 80 per cent stake in Eco Green, an Italian company that collects, sorts and distributes more than 70,000 tonnes of recycled aluminium a year.

Showcase your brand, aluminium recycling initiatives and sustainability vision in our upcoming magazine: Sustainability & Recycling: Aluminium’s Commitment 2026.

The company also acquired German recycler Leichtmetall in 2024. In December last year, EGA announced plans to expand the facility, including an additional 110,000 tonnes per year of scrap sorting capacity and 150,000 tonnes per year of melting and casting capacity.

EGA has yet to make the final “build decision” on the German expansion.

Kildemo said lower uncertainty would make it easier for the company to make the investment decision. He added, "I ⁠can't say ​if the project will go ahead or not ​without (the duty), but it's a net negative." 

He also said the issue was not necessarily the end of the discussion, as the aluminium industry continues to consider the implications of the EU’s decision.