Emirates Global Aluminium (EGA), the largest aluminium producer in the Middle East, is pursuing further acquisitions of US assets to capitalize on rising prices driven by tariffs on metal imports. Following its successful acquisition of Spectro Alloys Corp. in Minnesota last year, EGA is looking to expand its footprint in the American market, according to CEO Abdulnasser Bin Kalban.

The company's initial foray into the US has proven beneficial, providing a valuable tariff-exempt supply stream. Speaking at a conference in Dubai, Kalban highlighted the increasing "Midwest premium" for metal produced domestically, indicating the price advantage gained by avoiding import tariffs. This favorable market dynamic is driving EGA's interest in further US investment, with the company already evaluating potential deals prior to the imposition of tariffs on aluminium and steel imports.

While Kalban refrained from directly commenting on the overall impact of the tariffs on EGA, the company's US-based production will undoubtedly mitigate some of the effects. Aluminium produced in the UAE and shipped to the US, however, will be subject to the levies. The US relies heavily on aluminium imports to satisfy its domestic demand, with key suppliers including Canada, the UAE, and Mexico.

In addition to its expansion efforts, EGA is committed to sustainable practices in aluminium production. The company is set to launch a 170,000 ton-a-year smelter for recycled aluminium in Dubai this December, slightly ahead of schedule. Kalban emphasized EGA's commitment to more sustainable metal production through investments in recycling plants and the utilization of renewable energy sources to power its facilities where feasible.

The recycled aluminium smelter in Dubai represents a significant step towards EGA's sustainability goals. By increasing its capacity for recycled aluminium production, the company aims to reduce its environmental footprint and contribute to a circular economy for metals. The use of renewable energy in its operation’s further underscores EGA's dedication to minimizing its impact on the environment.

EGA's strategic expansion in the US reflects a broader trend of companies seeking to adapt to the changing global trade landscape. By increasing its US-based production capacity, EGA can reduce its exposure to import tariffs and strengthen its position in the American market. This move also demonstrates the company's commitment to serving its customers in the US with reliable, locally sourced aluminium.

Beyond the US, EGA is also exploring potential investment opportunities in Europe, signaling its ambition for global expansion. The company's focus on strategic acquisitions aims to secure access to key markets and enhance its production capabilities.