Dubai: The UAE's biggest non-oil industrial entity, Emirates Global Aluminium, plans to buy a majority stake in American aluminium recycling firm Spectro Alloys Corporation.
The deal, which is subject to regulatory approvals, will 'accelerate EGA’s global expansion into aluminium recycling and expand EGA’s business in the US'.
Spectro Alloys is a secondary foundry alloy producer and based in Minnesota. Its production capacity is around 110,000 tonnes per year of aluminium ingots, with a 'carbon intensity of less than one tonne of CO2 equivalent per tonne of aluminium produced'.
How much is EGA planning to buy?
The intent is to acquire 80 per cent in Spectro Alloys, with the current owners retaining 20 per cent. EGA and Spectro Alloys have signed an equity purchase agreement and the transaction is expected to close in the third quarter.
EGA has been active in deal making and expansion. In May, having acquired European specialty foundry Leichtmetall. Late last year, it started on construction of the UAE’s largest aluminium recycling plant.
EGA had sold around 550,000 tonnes of primary aluminium in the US in 2023. "In the US, which is already one of EGA’s largest global markets, this acquisition will significantly grow our business and expand our offering to customers with domestic production," said Abdulnasser Bin Kalban, CEO of the UAE company.
"Spectro Alloys has a strong and highly experienced team which is already implementing ambitious expansion plans, and will be a strong platform for the further development of an EGA recycling business in the US."
Earlier this year, Spectro Alloys started on an expansion project at its Rosemount site to add around 55,000 tonnes a year of secondary billet production capacity in the first phase. This is expected to be completed in 2025.
