EGA Completes Acquisition Of Majority Stake In Spectro Alloys To Enhance US Recycling Operations

Emirates Global Aluminium (EGA), the world's largest producer of 'premium aluminium', has finalised the acquisition of a majority stake in Spectro Alloys Corporation, an American aluminium recycling firm. This acquisition expands EGA's production footprint across four continents, from bauxite mining to aluminium recycling. Spectro Alloys enhances EGA's operations in the US, one of its biggest global markets.

In 2023, EGA sold around 550,000 tonnes of primary aluminium in the US. The demand for recycled aluminium in the country is projected to reach approximately 7.6 million tonnes annually by 2033, according to CRU, an independent business intelligence organisation. Currently, the US ranks as the second-largest market for recycled aluminium globally.

EGA now owns 80% of Spectro Alloys, while the company's owner-managers retain a 20% shareholding. The transaction was funded under EGA's green finance framework announced earlier this year. Spectro Alloys is a prominent secondary foundry alloy producer in the US, with a production capacity of about 110 thousand tonnes of aluminium ingots.

Spectro Alloys is expanding its Rosemount site to increase secondary billets production capacity by approximately 55,000 tonnes annually. This expansion is expected to be completed by 2025. Abdulnasser Bin Kalban, CEO of EGA, stated that developing a global recycling business is a strategic priority for EGA. He emphasised that aluminium is crucial for sustainable development and highlighted EGA's commitment to low-carbon primary and recycled aluminium.

In May, EGA acquired European specialty foundry Leichtmetall and began constructing the UAE’s largest aluminium recycling plant late last year. Aluminium recycling uses 95% less energy than producing new metal and significantly reduces greenhouse gas emissions.

Luke Palen, President of Spectro Alloys, expressed enthusiasm about joining EGA. He noted that EGA’s global resources would accelerate Spectro’s growth and enhance its ability to serve customers better while creating more job opportunities in Minnesota.

The integration with EGA marks a significant milestone for Spectro Alloys' five-decade journey. This partnership aims to boost their position as a leading recycling company committed to environmentally responsible production and supporting American manufacturing.

Aluminium's infinite recyclability makes it an essential material for sustainable practices. Recycling not only conserves energy but also minimises environmental impact compared to new metal production.

This acquisition aligns with EGA's strategic goals and underscores its commitment to sustainability and growth in key markets worldwide.

With inputs from WAM