Emirates Global Aluminium (EGA) announced its intention to acquire a majority stake in Spectro Alloys Corporation, a leading secondary aluminum producer based in Rosemount, Minnesota. The acquisition will accelerate EGA’s global expansion into aluminum recycling and expand its business in the U.S.
“EGA is the biggest ‘premium aluminium’ producer in the world and our goal is to grow further in both primary and recycled aluminium to meet the growing global demand for a metal which is essential for our world’s sustainable future,” said Abdulnasser Bin Kalban, chief executive officer of EGA. “In the United States, which is already one of EGA’s largest global markets, this acquisition will significantly grow our business and expand our offering to customers with domestic production. Spectro Alloys has a strong and highly experienced team which is already implementing ambitious expansion plans, and will be a strong platform for the further development of an EGA recycling business in the United States. I look forward to working with Spectro Alloys’ team.”
The U.S. currently consumes some 4.9 million tonnes of recycled aluminum annually, accounting for half of all aluminum demand in the country — and making the U.S. the second largest recycled aluminum market in the world. Demand for recycled aluminum in the country is expected to reach some 7.6 million tonnes per year by 2033, according to CRU.
Spectro Alloys has a production capacity of around 110,000 tonnes of secondary alloy ingots per year, with a carbon intensity of less than one tonne of CO2 equivalent per tonne of aluminum produced. The company sources aluminum scrap from more than 250 scrap suppliers in the region and uses advanced sorting and analysis technology to produce the wide variety of alloys required by customers. This currently includes more than 125 customers, primarily in the Upper Midwest and Texas. Almost half of its is used in the automotive sector, as well as small engine manufacturing, construction, and recreational vehicles.
In early 2024, Spectro Alloys broke ground on an expansion project at its Rosemount site (announced in late 2023), which will add approximately 55 thousand tonnes of secondary billet per year of production capacity in the first phase. The expansion project is expected to be completed in 2025.
EGA and Spectro Alloys have now signed an equity purchase agreement. Under the agreement, EGA intends to acquire 80% of Spectro Alloys, with the current owner-managers retaining the remaining 20% shares. The transaction is expected to close during the third quarter of 2024, subject to obtaining regulatory approvals.
“We have grown Spectro Alloys over the last five decades into one of the United States’ top aluminum recycling companies,” said Luke Palen, president of Spectro Alloys. “By becoming part of EGA, the largest ‘premium aluminium’ producer in the world, we will unlock the next stage of our development in the fast-growing aluminum recycling industry. In the near term, this will allow us to accelerate our ongoing expansion project. In the long term, this is a big win for the future of aluminum recycling in the United States.”
This acquisition is in line with EGA’s expansion into aluminum recycling. Last year, the company began construction of the UAE’s largest aluminum recycling plant in Al Taweelah. In May 2024, EGA acquired Leichtmetall Aluminium Giesserei Hannover GmbH, a German aluminum recycling firm.