According to a recent report, Emirates Global Aluminium (EGA) will most likely obtain a major stake in Spectro Alloys Corporation, the world’s leading recycling company headquartered in the United States, subject to regulatory approvals.
The news came after EGA and Spectro Alloys signed an equity purchase agreement, according to which EGA would acquire 80 per cent of the recycling company. As per the report, the transaction is expected to close during the third quarter of 2024.
Upon acquiring a stake in Spectro Alloys, EGA will expand its business in the United States and gain further recognition in the global aluminium recycling industry. EGA has been solidifying its identity in the worldwide recycling industry by recently acquiring a German speciality foundry, Leichmetall.
Expanding recycling capacity in the United States will enable EGA to capitalise on the 4.9 million tonnes of recycled aluminium market. The United States is the world’s second-largest aluminium recycling hub, with the prospect of about 7.6 million tonnes of annual recycled aluminium demand by 2033.
Spectro Alloys, founded in 1973 and based in Rosemount, Minnesota, is a leading secondary foundry alloy producer in the US. It has a recycled aluminium ingot production capacity of nearly 110 thousand tonnes per year, with carbon emissions of less than one tonne of CO2 equivalent per tonne of aluminium produced.
Within a year, Spectro Alloys’ recycled aluminium production capacity will increase by approximately 55 thousand tonnes a year on coming up with an expanded project at the Rosemount site by 2025.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “EGA is the biggest ‘premium aluminium’ producer in the world and our goal is to grow further in both primary and recycled aluminium to meet the growing global demand for a metal which is essential for our world’s sustainable future. In the United States, which is already one of EGA’s largest global markets, this acquisition will significantly grow our business and expand our offering to customers with domestic production. Spectro Alloys has a strong and highly experienced team which is already implementing ambitious expansion plans, and will be a strong platform for the further development of an EGA recycling business in the United States. I look forward to working with Spectro Alloys’ team.”
Luke Palen, President of Spectro Alloys, said: “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 aluminium 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 aluminium recycling in the United States.”
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