Dubai’s Emirates Global Aluminium (EGA) has announced the successful acquisition of a majority interest in the American aluminium recycling company, Spectro Alloys Corporation.
This acquisition, WAM reported, expands EGA’s operations across four continents, encompassing the entire spectrum from bauxite mining to aluminium recycling.
Spectro Alloys significantly bolsters EGA’s presence in the United States, where the company already ranks as one of its largest markets. In 2023, EGA sold around 550,000 tonnes of primary aluminium in the U.S..
Projected growth in recycling demand
According to CRU, an independent business intelligence firm, the demand for recycled aluminium in the US is projected to reach approximately 7.6 million tonnes annually by 2033, making it the second largest recycled aluminium market globally.
EGA has secured an 80 percent stake in Spectro Alloys, while the company’s owner-managers will retain a 20 percent ownership. The transaction is aligned with EGA’s green finance framework, introduced earlier this year.
Production capacity and expansion plans
Spectro Alloys is a prominent producer of secondary foundry alloys in the U.S., with an annual production capacity of about 110,000 tonnes of aluminium ingots. The company is currently implementing an expansion plan at its Rosemount facility, which aims to increase secondary billet production capacity by around 55,000 tonnes per year, with completion expected in 2025.
Strategic recycling focus
Abdulnasser Bin Kalban, chief executive officer of EGA, remarked that aluminium plays a vital role in creating a sustainable future. He noted that the demand for low-carbon primary and recycled aluminium is expected to increase significantly in the coming decades. He emphasized that establishing a global recycling business is a strategic priority for EGA. Kalban indicated that the company is taking swift and determined actions, with recycling operations now established in both the U.S. and Europe, while their greenfield plant in the UAE is progressing well. He also extended a warm welcome to the new colleagues in Minnesota.
Enhancing customer experience
Luke Palen, president of Spectro Alloys, mentioned that joining EGA represents an exciting new chapter in the company’s 50-year history. He noted that EGA’s extensive resources and marketing strength in the U.S. would significantly boost Spectro’s growth. Palen expressed confidence that they are well-positioned to establish themselves as a leading recycling company. They aim to improve customer service and create additional job opportunities in Minnesota. They also want to contribute to environmentally responsible aluminium production made in America.
Environmental impact of aluminium recycling
Aluminium is infinitely recyclable, and recycling it requires 95 percent less energy compared to producing new metal, resulting in significantly lower greenhouse gas emissions.
Recent strategic acquisitions
Earlier this year, EGA also acquired the European specialty foundry Leichtmetall, and late last year began construction on the UAE’s largest aluminium recycling facility.
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