Emirates Global Aluminium (EGA), the largest industrial company in the UAE, is set to acquire a majority stake in Spectro Alloys Corporation, a leading American aluminum recycling firm.
EGA has signed an equity purchase agreement with Spectro Alloys, and the transaction is expected to close by Q3 2024. The acquisition, subject to regulatory approvals, will boost EGA’s global expansion into aluminum recycling and also expand its operations in the United States.
The company aims to acquire 80 percent of Spectro Alloys. The current owner-managers will retain a 20 per cent shareholding. In May, EGA acquired European-based Leichtmetall, and late last year EGA commenced to construct the UAE’s largest aluminum recycling plant. In addition to this, last year, EGA sold about 550 thousand tons of primary aluminum in the United States.
Abdulnasser Bin Kalban Chief Executive Officer – Emirates Global Aluminum,
“EGA is the biggest ‘premium aluminum’ producer in the world and our goal is to grow further in both primary and recycled aluminum to meet the growing global demand for a metal which is essential for our world’s sustainable future. 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.”
Spectro Alloys has over 125 customers, primarily in the Upper Midwest and Texas. Almost half of its production is used in the automotive sector. Other important sectors for Spectro Alloys are small engine manufacturing, construction, and recreational vehicles.
Luke Palen, President of Spectro Alloys, commented that, “We have grown Spectro Alloys over the last five decades into one of the United States’ top aluminum recycling companies. By becoming part of EGA, the largest ‘premium aluminum’ 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.”
The United States consumes 4.9 million tons of recycled aluminum annually, making it the second largest recycled aluminum market in the world. The demand for recycled aluminum in the US is expected to increase 7.6 million tons per year by 2033, according to CRU.
Spectro Alloys, established in 1973, has a production capacity of around 110 thousand tons per year of aluminum ingots, with a carbon intensity of less than one ton of CO2 equivalent per ton of aluminum produced. To meet the needs of customers, Spectro Alloys employs advanced sorting and analysis technology to produce the wide range of alloys.
