Emirates Global Aluminium (EGA), the world's leading producer of premium aluminium, announced a significant move towards a more sustainable future with the acquisition of Leichtmetall, a German aluminium recycling firm. This strategic acquisition, valued at an undisclosed amount, signifies EGA's commitment to capturing a growing share of the low-carbon aluminium market.
The agreement, finalized on March 21, 2024, grants EGA full ownership of Leichtmetall, a European leader in the production of high-strength recycled aluminium products. Leichtmetall specializes in hard alloys and larger diameter billets, catering to a specific segment within the aluminium industry. Notably, around 80% of the raw materials utilized by Leichtmetall come from recycled aluminium sources, aligning perfectly with EGA's environmental goals.
This acquisition comes hand-in-hand with EGA's ongoing construction of the UAE's largest aluminium recycling plant in Al Taweelah. With a projected capacity of 170,000 tonnes per year, this domestic facility, dubbed "RevivAL," aims to supply both local and international markets with low-carbon aluminium. Combining Leichtmetall's established expertise with EGA's own recycling endeavors positions the company as a major player in the global market for sustainable aluminium solutions.
Abdulla Kalban, Managing Director and CEO of EGA, emphasized the significance of the Leichtmetall acquisition: "This strategic move, alongside our upcoming recycling plant in Abu Dhabi, represents a crucial first step for EGA in seizing the vast potential of the low-carbon aluminium market worldwide. By expanding our business into recycled aluminium, we are not only strengthening our position but also contributing to a more sustainable future for the aluminium industry."
Analysts predict that the global demand for recycled aluminium is poised for significant growth, with projections suggesting a rise from 27 million tonnes per year in 2022 to a staggering 57 million tonnes by 2040. EGA's proactive approach positions them to capitalize on this burgeoning market trend, ensuring a steady supply of eco-conscious aluminium products to meet the evolving demands of various industries.
The acquisition of Leichtmetall is not only a significant sustainability stride for EGA but also a testament to the company's dedication to long-term growth. By strategically integrating recycled aluminium into its production portfolio, EGA is well-positioned to navigate the ever-changing dynamics of the global aluminium market while fostering a more environmentally responsible future for the industry.