On Monday, Sept. 30, Emirates Global Aluminium (EGA), a global aluminum producer, announced that it completed its acquisition of a majority stake in American aluminum recycling firm Spectro Alloys Corporation, based in Rosemount, MN.
The acquisition means that EGA now has production on four continents, from bauxite mining to aluminum recycling.
Spectro Alloys adds to EGA’s existing business in the United States with domestic metal production. The U.S. was already one of EGA’s largest global markets. In 2023, EGA sold approximately 550 thousand tons of primary aluminum in the country.
Demand for recycled aluminum in the U.S. is expected to reach some 7.6 million tons per year by 2033, according to CRU, an independent business intelligence organization. The U.S. is currently the world’s second biggest recycled aluminum market.
“Aluminum is an essential material for the development of a more sustainable society, and demand for low carbon primary and recycled aluminum will grow significantly over the decades ahead,” said Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium. “Developing a global business in recycling is a key strategic priority for EGA. We are taking rapid and decisive action, now with recycling operations in both the United States and Europe and our greenfield plant in the UAE progressing well. I welcome our new colleagues in Minnesota to EGA.”
EGA has acquired 80% of Spectro Alloys, with the company’s owner-managers retaining a 20% shareholding. Funding of the transaction is in accordance with EGA’s green finance framework, which was announced earlier this year.
Spectro Alloys is a secondary foundry alloy producer in the U.S., with some 110 thousand tons of aluminum ingots production. The company is implementing an expansion plan at its Rosemount site that will add around 55 thousand tons per year of secondary billets production capacity in the first year, which is expected to be completed in 2025.
“Becoming part of EGA is an exciting new chapter in Spectro Alloys’ five decades-long journey. EGA’s global resources and strength in marketing aluminum in the United States will accelerate Spectro’s growth,” said Luke Palen, president of Spectro Alloys. “We are now well-placed to develop even further as a leading recycling company, serving our customers even better, creating more job opportunities for people in Minnesota, and contributing to the production of aluminum products that are both environmentally responsible and made in America.”
Aluminum is infinitely recyclable and requires 95% less energy than making new metal, generating a fraction of the greenhouse gas emissions.
In May, EGA acquired European specialty foundry Leichtmetall, and late last year EGA began construction of the UAE’s largest aluminum recycling plant.
