Emirates Global Aluminium (EGA), one of the world’s largest aluminium producers, has announced plans to acquire an 80% stake in the American aluminium recycling company, Spectro Alloys Corporation. This strategic move, subject to regulatory approval, marks a significant step in EGA’s global expansion, particularly in the aluminium recycling sector.
The deal, which is expected to close during the third quarter of 2024, underscores EGA’s commitment to growing its business in the United States. Spectro Alloys, founded in 1973 and based in Minnesota, will retain a 20% ownership stake by its current owners, even as EGA becomes the majority stakeholder. The financial details of the transaction have not been disclosed, but the acquisition is seen as a pivotal move in EGA’s strategy to meet the increasing global demand for aluminium, a metal crucial for sustainable development.
EGA’s CEO, Abdulnasser Bin Kalban, emphasized that this acquisition is part of the company’s broader goal to expand in both primary and recycled aluminium sectors. Spectro Alloys, which currently has an annual production capacity of 110,000 tonnes of aluminium ingots, is in the midst of a significant expansion. The company is adding 55,000 tonnes of secondary billet production capacity at its Rosemount facility, with completion expected by 2025. This expansion is poised to strengthen Spectro Alloys’ position in the US market and aligns with EGA’s vision of sustainable growth.
EGA has been increasingly active in expanding its footprint globally. In addition to the Spectro Alloys acquisition, EGA recently acquired Leichtmetall, a European specialty foundry, and is constructing the UAE’s largest aluminium recycling plant at Al Taweelah. This 170,000-tonne-per-year facility, situated next to its existing smelter, is another testament to EGA’s aggressive push into the recycling sector, which is becoming increasingly vital as industries worldwide seek more sustainable practices.
The United States is a key market for EGA, with the company having sold 550,000 tonnes of primary aluminium in the country last year, making it EGA’s largest market globally. This acquisition is expected to bolster EGA’s presence in the US even further, enabling it to cater to the growing demand for recycled aluminium, which is essential in reducing the carbon footprint of industries such as automotive, construction, and packaging.
Spectro Alloys’ expansion and EGA’s investment come at a time when the aluminium industry is undergoing significant changes, driven by the global push towards sustainability. Aluminium, being infinitely recyclable, plays a crucial role in this shift. By acquiring a majority stake in Spectro Alloys, EGA is positioning itself to not only meet the rising demand but also to lead in the production of sustainable aluminium products.
This acquisition is part of EGA’s broader strategy to diversify and expand its operations globally, ensuring it remains at the forefront of the aluminium industry, both in primary production and recycling. As the industry continues to evolve, EGA’s strategic investments in key markets like the US are likely to solidify its position as a global leader in aluminium production and recycling.
