EGA to acquire producer of high-strength recycled aluminium
Emirates Global Aluminium have announced the signing of a binding sale and purchase agreement for the acquisition of a German aluminium recycling firm, Leichtmetall Aluminium Giesserei Hannover GmbH.
Leichtmetall is a European specialty foundry, with production including hard alloys and larger diameter billets with high proportions of secondary aluminium.
EGA is to acquire 100 per cent of the firm from Leichtmetall Holding GmbH, a subsidiary of an investment fund managed by Quantum Capital Partners GmbH. The transaction is expected to close during the first half of 2024, subject to obtaining regulatory approvals.
The landmark transaction is EGA’s first major acquisition since EGA was formed through the merger of Dubai Aluminium and Emirates Aluminium a decade ago.
Leichtmetall uses renewable energy at its plant in Hannover, Germany, to produce up to 30 thousand tonnes per year of aluminium billets with secondary aluminium as some 80 per cent of input material.
The company uses proprietary inductive melting technology, liquid metal treatment and casting processes developed over more than four decades to make, from scrap metal, very high quality and specification products used in demanding applications. Leichtmetall’s production mainly consists of hard alloy billets up to 1,150 millimetres in diameter, with uses including manufacturing high load bearing extruded profiles and very large forged components.
Leichtmetall has customers across Europe, and particularly in Germany, Italy and France.
Market analysts expect global demand for recycled aluminium to grow from some 27 million tonnes per year in 2022 to 57 million tonnes in 2040. Recycled aluminium is expected to account for around 60 per cent of the growth in global aluminium supply between now and 2030, and around 70 per cent of supply growth between 2030 and 2040.
EGA currently exports over 600 thousand tonnes of primary aluminium to Europe each year. EGA is a significant supplier in Europe for industries including automotive and construction.
