EGA Expands Recycling Capabilities With Acquisition Of German Firm Leichtmetall

Emirates Global Aluminium (EGA), recognized as the world's leading producer of 'premium aluminium', has recently finalized a deal to acquire Leichtmetall Aluminium Giesserei Hannover GmbH, a distinguished German aluminium recycling company. This strategic move marks EGA's first significant acquisition, showcasing its commitment to expanding its global footprint in the aluminium sector. Leichtmetall, known for its specialized foundry services in Europe, focuses on producing hard alloys and larger diameter billets, incorporating a high percentage of secondary aluminium in its products.

The acquisition entails EGA taking over 100% ownership of Leichtmetall from its parent company, Leichtmetall Holding GmbH, which falls under the umbrella of Quantum Capital Partners GmbH. This transaction is poised for completion in the first half of 2024, pending regulatory approvals. Leichtmetall's innovative approach includes proprietary inductive melting technology and casting processes that have been refined over four decades, enabling the production of high-quality products from scrap metal. These products find applications in manufacturing high-load bearing extruded profiles and large forged components.

Leichtmetall boasts a robust customer base across Europe, with significant presences in Germany, Italy, and France. Abdulnasser bin Kalban, CEO of EGA, highlighted the acquisition's strategic importance, stating it provides EGA with a vital platform to develop a recycling business in close proximity to European customers. This move aligns with the emerging circular economy trends and strengthens EGA's position as a major importer of primary aluminium in Europe.

Adel Abubakar, EGA's Chief Marketing Officer, emphasized the acquisition's role in enhancing EGA's capability to meet the high-end aluminium demand in Europe both operationally and commercially. This step is also instrumental in advancing EGA's carbon emissions reduction goals. Thomas Witte, CEO of Leichtmetall, expressed optimism about the acquisition by EGA, noting it would unlock additional capital and resources for Leichtmetall to expand its business and continue technological advancements.

Steffen Görig, CEO of Quantum Capital Partners GmbH, reflected on the transformation under their ownership. He credited Thomas Witte’s leadership for evolving Leichtmetall into an innovative and sustainable supplier within the industry. The transaction is celebrated as a milestone that will elevate Leichtmetall's capabilities and contribute significantly to EGA’s broader recycling business objectives.

Leichtmetall's commitment to sustainability is evident in its use of renewable energy at its Hannover plant. The facility produces up to 30 thousand tonnes per year of aluminium billets, with secondary aluminium constituting approximately 80% of the input material. This acquisition not only signifies EGA's first major step since its inception through the merger of Dubai Aluminium and Emirates Aluminium but also underscores its dedication to achieving net-zero greenhouse gas emissions by 2050.

In summary, this acquisition by Emirates Global Aluminium marks a pivotal development in its expansion strategy, focusing on low carbon primary and recycled aluminium. It underscores EGA’s commitment to sustainability and innovation in meeting global aluminium demand while advancing towards environmental goals.

With inputs from WAM