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Emirates Global Aluminum Company announced the completion of the acquisition of a majority stake in the American company Spectro Alloys, which specializes in aluminum recycling..
Thanks to the acquisition, Emirates Global Aluminum has production operations on four continents, ranging from bauxite mining to aluminum recycling..
The acquisition strengthens Emirates Global Aluminium’s business in the United States, by providing local production capacity. In 2023, the company supplied about 550,000 tons of primary aluminum to the United States, as it is one of the largest global markets for Emirates Global Aluminium..
Demand for recycled aluminum in the United States is expected to reach 7.6 million tons annually by 2033, according to the Foundation. CRU Independent, specialized in corporate research and data. The United States is the second largest market for recycled aluminum in the world.
Emirates Global Aluminum acquired an 80% stake in Spectro Alloys, and the company’s owners retain a 20% stake. The deal was fully financed through EGA’s green financing framework, which was announced this year.
Spectro Alloys is considered one of the leading companies in the production of secondary aluminum in the United States, producing about 110 thousand tons of aluminum alloys annually. At the beginning of this year, Spectro Alloys announced an ambitious plan to expand in the city of Rosemount, which will contribute to increasing its production by 55 thousand tons annually of secondary aluminum cylinders in the first phase, which is expected to be completed during the year 2025..
Abdul Nasser Bin Kalban, CEO of Emirates Global Aluminium, said: “Aluminum is an essential metal for building more sustainable societies, and the demand for low-carbon, recycled primary aluminum is expected to increase significantly over the coming decades. Emirates Global Aluminum places the development of its recycling business at the top of its strategic priorities, and therefore we are taking rapid steps, in light of the progress of our recycling operations in the United States and Europe, and in our new factory in the UAE. I welcome our colleagues from Minnesota to the EGA team».
For his part, Luke Ballen, President of Spectro Alloys, said: “By joining Emirates Global Aluminum, we begin a new phase in Spectro Alloys’ journey spanning five decades. Emirates Global Aluminum’s global resources and its capabilities to market aluminum in the United States will contribute to enhancing the growth of our company. As a leading aluminum recycler in the United States, we are well positioned to continue to grow our business, better serve customers, create more jobs in Minnesota, and provide products manufactured in the United States that meet environmental standards.».
Because of its distinctive properties, aluminum can be recycled continuously and infinitely, and the recycling process requires 95% less energy, compared to the energy consumed to produce primary aluminum, and results in a small amount of emissions, compared to producing aluminum from raw bauxite..
In May, Emirates Global Aluminum acquired Lichtmetal, a specialist smelter in Germany. The company began building the largest aluminum recycling plant in the UAE at the end of last year.
