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UAE’s Emirates Global Aluminum (EGA) will fully acquire German aluminum recycling company Leichtmetall Aluminum Giesserei from Leichtmetall Holding, according to a statement published on Thursday. The transaction is set to be finalized in 1H 2024 and marks the company’s first major acquisition since it was formed by merging Dubai Aluminum and Emirates Aluminum.
About Leichtmetall: The company specializes in processing secondary aluminum recycled from scrap and alloyed with elements like zinc and magnesium to create high-quality alloy. This process saves up to 95% energy compared to traditional energy-intensive aluminum production. Leichtmetall powers its Hanover aluminum plant with renewable energy and has an annual production capacity of 30k tons of billets using 80% secondary aluminum. The company has a customer base in Germany, Italy, and France.
A strategic move for EGA: EGA exports around 600k tons of aluminum to Europe annually, the statement notes. The new purchase could bring the company closer to European customers on the eve of the bloc introducing its tax on carbon-intensive imports in 2026. Recycled aluminum is set to account for around 60% of global aluminum demand by 2030 and 70% by 2040, to reach 57 mn tons, the statement added.
