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EGA expands its footprint in the US market: Mubadala-backed Emirates Global Aluminium (EGA) signed an equity purchase agreement to acquire an 80% stake in US-based aluminum manufacturer Spectro Alloys, according to a statement released on Thursday. The value of the transaction, which will see Spectro Alloys’ current management retain a 20% stake, was not disclosed. The acquisition remains subject to regulatory approvals and is expected to close during 3Q 2024, the statement notes.
The acquisition allows EGA to expand its footprint in the US aluminum recycling market, and accelerate its global expansion, according to the statement. Spectro Alloys will also be able to benefit from EGA’s resources.
SMART POLICY- Global demand for recycled aluminum is expected to double by 2040, with the industry set to account for 60% of the growth in global aluminum supply until 2030, according to the statement. It will account for 70% of supply growth between 2030 and 2040.
A strategic decision: Spectro Alloys is among the US’ top secondary foundry alloy producers with a production capacity of 110k tons per year of aluminum ingots with a cabinet intensity of less than one ton of CO2 equivalent per ton of aluminum produced. It is currently expanding its facilities to add 55k tonnes of recycled billet production capacity by 2025. Half of its production is used in the automotive sector with other sectors including semi-fabricators, small engine manufacturing, construction, and recreational vehicles, according to the statement.
What they said: “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,” EGA CEA Abdulnasser bin Kalban said in the statement.
EGA is on a buying spree this year: EGA completed a full acquisition of German aluminum recycling company Leichtmetall Aluminum Giesserei from Leichtmetall Holding back in May. Its acquisition of the German firm was EGA’s first major acquisition since it was formed through the merger of Dubai Aluminum and Emirates Aluminum in 2013.
