Emirates Global Aluminium Announces Acquisition of Leichtmetall
Emirates Global Aluminium (EGA), recognized as the world's largest producer of 'premium aluminium', has officially announced its acquisition of Leichtmetall Aluminium Giesserei Hannover, a German firm specializing in aluminium recycling. This acquisition marks EGA's first major strategic move since its formation through the merger of Dubai Aluminium and Emirates Aluminium a decade ago.
Leichtmetall, known for its specialty foundry operations in Europe, focuses on producing hard alloys and larger diameter billets, incorporating a high proportion of secondary aluminium. This aligns with EGA's strategic goals of enhancing its recycling capabilities and contributing to the global aluminium industry's sustainability efforts.
The acquisition, from Leichtmetall Holding—a subsidiary of Quantum Capital Partners—encompasses 100 percent ownership and is expected to close in the first half of 2024, pending regulatory approvals. Leichtmetall's adoption of renewable energy sources at its Hannover plant allows it to produce up to 30,000 tonnes per year of aluminium billets, making it a valuable addition to EGA's portfolio.
Abdulnasser Bin Kalban, CEO of EGA, emphasized the acquisition's role in expanding the company's recycling business in Europe and contributing to the circular economy. He highlighted the strategic importance of Leichtmetall to EGA's goal of achieving net-zero greenhouse gas emissions by 2050 and its potential to service global markets with low-carbon aluminium.
Thomas Witte, CEO of Leichtmetall, expressed optimism about joining forces with EGA, citing the move as an opportunity for growth, technological development, and enhanced partnerships with international customers. Quantum Capital Partners' CEO, Steffen Görig, reflected on Leichtmetall's transformation under their stewardship and anticipates further growth and innovation through this new partnership with EGA.
The global demand for recycled aluminium is projected to increase significantly, with recycled materials expected to account for a substantial portion of the global aluminium supply growth in the coming decades. EGA's investment in recycling, including the construction of the UAE's largest aluminium recycling plant in Al Taweelah, signifies its commitment to sustainable practices and its ambition to lead the industry towards a greener future.
