Emirates Global Aluminium (EGA), the biggest “premium aluminium” producer in the world and the largest industrial company in the UAE outside oil and gas, has signed an equity purchase agreement with the US-based Spectro Alloys Corporation, an aluminium recycling firm, to acquire 80 percent in the company.
The current owner-managers will retain a 20 per cent shareholding after the transaction closes, which is expected during the third quarter of 2024 after obtaining regulatory approvals.
Financial details of the transaction were not disclosed.
Emirates Global Aluminium
The acquisition gives further wings to EGA’s global expansion plans. It will expand EGA’s business in the United States and comes within three months of the company acquiring European speciality foundry Leichtmetall in Hannover, Germany.
EGA also began constructing the UAE’s largest aluminium recycling plant in Al Taweelah in Abu Dhabi. It will cover an area of 900 square metres when complete.
Abdulnasser bin Kalban, CEO of EGA, commented: “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. 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 that 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.”
Spectro Alloys currently supplies to more than 125 companies, primarily in the Upper Midwest and Texas. Almost half of Spectro Alloys’ production is used in the automotive sector.
It also sells to semi-fabricators, who in turn supply blue-chip end-user companies. Other important sectors for Spectro Alloys include small engine manufacturing, construction, and recreational vehicles.
Luke Palen, President of Spectro Alloys, added: “We have grown Spectro Alloys over the last five decades into one of the United States’ top aluminium recycling companies. By becoming part of EGA, we will unlock the next stage of our development.”
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