Emirates Global Aluminium (EGA) announced its plan to acquire 80 percent of the American aluminum recycling firm Spectro Alloys Corporation. EGA and Spectro Alloys recently signed an equity purchase agreement with expectations of the transaction closing during the third quarter of 2024. Notably, the current owner-managers will retain a 20 percent shareholding.
The acquisition, which is subject to obtaining regulatory approvals, will accelerate EGA’s global expansion into aluminum recycling and expand the company’s business in the U.S.
Meeting growing global demand for aluminum
In a bid to expand its presence in the aluminum industry, EGA acquired the European specialty foundry Leichtmetall in May. Late last year, the company also began constructing the largest aluminum recycling plant in the UAE.
“EGA is the biggest ‘premium aluminum’ producer in the world and our goal is to grow further in both primary and recycled aluminum to meet the growing global demand for a metal which is essential for our world’s sustainable future,” stated Abdulnasser bin Kalban, CEO of EGA.
In the United States, which is already one of EGA’s largest global markets, the acquisition of an 80 percent stake in Spectro Alloys will significantly grow the company’s business and expand its offering to customers with domestic production.
“Spectro Alloys has a strong and highly experienced team that is already implementing ambitious expansion plans, and will be a strong platform for the further development of an EGA recycling business in the United States,” bin Kalban added.
Read: Abu Dhabi’s ADQ to acquire minority stake in Sotheby’s
Expansion into U.S. market
Spectro Alloys currently supplies more than 125 customers, primarily in the Upper Midwest and Texas. Almost half of Spectro Alloys’ production goes to the automotive sector. It also sells to semi-fabricators, who in turn supply blue-chip end-user companies. Other important sectors for Spectro Alloys include small engine manufacturing, construction, and recreational vehicles.
For his part, Luke Palen, President of Spectro Alloys, said: “We have grown Spectro Alloys over the last five decades into one of the United States’ top aluminum recycling companies. By becoming part of EGA, the largest ‘premium aluminum’ producer in the world, we will unlock the next stage of our development in the fast-growing aluminum recycling industry.”
For more industry news, click here.
