Emirates Global Aluminium Strengthens Portfolio with Spectro Alloys Acquisition

Emirates Global Aluminium (EGA), the premier industrial entity in the UAE outside of the oil and gas sector and the leading global producer of high-quality aluminum, has announced its plan to acquire a majority interest in Spectro Alloys, a prominent American aluminum recycling firm. This strategic move, pending regulatory clearance, is set to bolster EGA's international footprint in aluminum recycling and enhance its presence in the U.S. market.

Spectro Alloys, established in 1973 and headquartered in Rosemount, Minnesota, stands as a key player in the U.S. recycled aluminum alloy sector. With an annual output of 240 million pounds of aluminum foundry alloys, the company’s recycling process delivers over 95% savings in CO2 emissions and energy compared to primary aluminum production. The environmental impact is significant, with Spectro's CO2 reduction equating to the removal of over 80,000 vehicles from roads and its energy savings capable of powering more than 200,000 households.

In a notable expansion effort, Spectro recently initiated a $71 million project to enhance its recycling capacity by an additional 120 million pounds annually, alongside the creation of up to 50 new full-time positions. The first phase of this expansion is slated for completion by 2025.

EGA's acquisition will involve securing an 80% ownership stake in Spectro Alloys, while the current owners will maintain a 20% share. The two companies have formalized their agreement through an equity purchase contract, with the deal anticipated to finalize in the third quarter of 2024.

Abdulnasser Bin Kalban, CEO of EGA, emphasized that the company aims to expand its presence in both primary and recycled aluminum to address the increasing global demand for this vital material, crucial for a sustainable future. He noted that this acquisition will enhance EGA's footprint in the U.S., one of its major markets, by integrating domestic production and broadening its customer offerings. Bin Kalban highlighted Spectro Alloys' skilled team and their ambitious expansion plans, which will provide a solid foundation for advancing EGA's recycling operations in the U.S. and expressed enthusiasm about collaborating with Spectro Alloys.

Spectro Alloys is a leading supplier of recycled aluminum alloys, serving a diverse customer base primarily in the Upper Midwest and Texas. The company's products are widely used in the automotive sector, accounting for nearly half of its total production. Spectro's distribution network includes semi-fabricators who supply blue-chip end-user companies, as well as other key sectors such as small engine manufacturing, construction, and recreational vehicles.

To meet the growing demand for recycled aluminum, Spectro sources scrap from over 250 suppliers in the region and employs advanced sorting and analysis technologies to produce a wide range of alloys tailored to customer specifications. Given the projected doubling of global demand for recycled aluminum by 2040, Spectro is well-positioned to capitalize on the increasing importance of sustainable materials in the manufacturing industry.