EGA expands global footprint with majority stake acquisition in Spectro Alloys

Emirates Global Aluminium (EGA), the world's largest producer of premium aluminium, has acquired a majority stake in the American aluminium recycling company Spectro Alloys Corporation. This acquisition expands EGA's global presence, with operations now spanning four continents, from bauxite mining to aluminium recycling.

New chapter for Spectro Alloys

Spectro Alloys significantly boosts EGA's domestic metal production in the United States, which is already one of EGA's key markets. In 2023, the company sold around 550,000 tonnes of primary aluminium in the U.S. alone.

President of Spectro Alloys, Luke Palen, commented, "Becoming part of EGA is an exciting new chapter in Spectro Alloys' five decades-long journey. EGA's global resources and strength in marketing aluminium in the United States 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."

According to CRU, an independent business intelligence firm, demand for recycled aluminium in the United States is projected to reach approximately 7.6 million tonnes annually by 2033. Currently, the U.S. is the second-largest market for recycled aluminium globally.

EGA acquires 80% stake

Emirates Global Aluminium (EGA) has acquired an 80 per cent stake in Spectro Alloys, while the company's owner-managers will retain the remaining 20 per cent. The acquisition is financed under EGA's green finance framework, introduced earlier this year.

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, 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."

About Spectro Alloys

Spectro Alloys is a prominent secondary foundry alloy producer in the United States, with an annual production of approximately 110,000 tonnes of aluminium ingots. The company is executing an expansion project at its Rosemount facility, which will increase its production capacity by 55,000 tonnes of secondary billets per year in the first phase. This expansion is slated for completion in 2025.

Aluminium is infinitely recyclable, and recycling it uses 95% less energy compared to producing new metal, resulting in significantly lower greenhouse gas emissions. In May, Emirates Global Aluminium (EGA) acquired the European speciality foundry Leichtmetall, and at the end of last year, EGA commenced construction on the UAE's largest aluminium recycling facility.