Emirates Global Aluminium Expands into US Market with Spectro Alloys Acquisition
Emirates Global Aluminium (EGA) has announced plans to acquire an 80% stake in American aluminium recycling firm Spectro Alloys Corporation, marking a significant move in EGA’s global expansion into aluminium recycling. The acquisition, pending regulatory approval, will strengthen EGA's presence in the United States, one of its largest global markets.
Spectro Alloys, established in 1973 and located in Rosemount, Minnesota, is a leading producer of secondary foundry alloys with an annual production capacity of around 110,000 tonnes of aluminium ingots. The company's operations are notable for their low carbon footprint, with a carbon intensity of less than one tonne of CO2 equivalent per tonne of aluminium produced.
Spectro Alloys is currently undergoing an expansion at its Rosemount facility, which will add an additional 55,000 tonnes per year of secondary billet production capacity. This first phase of the expansion is expected to be completed by 2025.
EGA's acquisition will see the current owner-managers retain a 20% shareholding in Spectro Alloys. An equity purchase agreement has been signed, and the transaction is anticipated to close in the third quarter of 2024.
This acquisition follows EGA's recent purchase of European specialty foundry Leichtmetall and the commencement of construction on the UAE's largest aluminium recycling plant. EGA's CEO, Abdulnasser Bin Kalban, stated that this move aligns with EGA’s strategy to grow in both primary and recycled aluminium sectors to meet increasing global demand.
Luke Palen, President of Spectro Alloys, welcomed the acquisition, highlighting the potential for accelerated growth and expansion in the aluminium recycling industry as a result of the partnership with EGA.
The United States is the second-largest recycled aluminium market globally, with consumption expected to rise from 4.9 million tonnes annually to 7.6 million tonnes by 2033. In 2023, EGA sold approximately 550,000 tonnes of primary aluminium in the United States.
