EGA To Expand Recycling Business With 80% Stake In Spectro Alloys

Emirates Global Aluminium (EGA) has announced plans to acquire an 80 percent stake in the American aluminium recycling firm Spectro Alloys Corporation. The current owner-managers will keep a 20 percent shareholding. The acquisition is expected to close in the third quarter of 2024, pending regulatory approvals.

This acquisition will boost EGA's global expansion into aluminium recycling and enhance its business presence in the United States. In May, EGA acquired European speciality foundry Leichtmetall, and late last year, it began constructing the UAE's largest aluminium recycling plant.

Abdulnasser bin Kalban, CEO of EGA, stated, "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 currently supplies over 125 customers, mainly in the Upper Midwest and Texas. Nearly half of its production serves the automotive sector. It also sells to semi-fabricators who supply blue-chip end-user companies. Other key sectors include small engine manufacturing, construction, and recreational vehicles.

Luke Palen, President of Spectro Alloys, remarked, "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."

Strategic Growth Plans

The acquisition aligns with EGA's strategic growth plans. Abdulnasser bin Kalban highlighted that Spectro Alloys has a strong and experienced team already implementing ambitious expansion plans. This team will provide a robust platform for further developing EGA's recycling business in the United States.

The equity purchase agreement between EGA and Spectro Alloys signifies a significant step towards expanding EGA’s footprint in North America. This move is part of EGA’s broader strategy to meet increasing global demand for sustainable aluminium solutions.

This partnership aims to leverage Spectro Alloys’ existing capabilities while integrating them with EGA’s extensive resources and expertise. The collaboration is expected to drive growth and innovation within the aluminium recycling industry.

With inputs from WAM