Primary aluminum producer Emirates Global Aluminium (EGA) plans to buy a majority stake in secondary aluminum smelter Spectro Alloys as part of its efforts to grow its US presence and expand into new markets.
UAE-based EGA intends to acquire 80pc of Minnesota-based Spectro, the companies said on Thursday in separate statements. The transaction, for which financial details were not provided, is expected to close during the current quarter pending regulatory approvals.
The addition of Spectro will give EGA a production foothold in the US, a market that accounted for more than a quarter — or 550,000 metric tonnes (t) — of its global primary aluminum sales in 2023.
EGA foresees secondary aluminum, or aluminum produced mainly from recycled scrap, as a major driver to meet future demand for the base metal. The company cited third-party estimates that recycled aluminum will account for 60pc of growth in global aluminum supply by 2030, and then 70pc between 2030-2040.
In anticipation of that growth, EGA already acquired German specialty foundry Leichtmetall and its 30,000t/yr production capacity in May. EGA also began constructing its own recycling plant in the UAE in November. That facility has a planned billet production capacity of 170,000t/yr and will rely on pre- and post-consumer scrap as feedstock.
Spectro has an aluminum ingot production capacity of 110,000t/yr, EGA said. The Minnesota-based company also broke ground in March on an expansion project that is expected to add 55,000t/yr of billet production capacity in its first phase.
