EGA to Acquire Leichtmetall: European Leader in Recycled Aluminum

Emirates Global Aluminium (EGA), the world's leading producer of premium aluminium, has announced the finalization of a binding sale and purchase agreement for the acquisition of Leichtmetall Aluminium Giesserei Hannover GmbH, a German aluminium recycling company. Leichtmetall specializes in producing hard alloys and large diameter billets using a significant portion of secondary aluminium.

Under this agreement, EGA will acquire 100% ownership of Leichtmetall from Leichtmetall Holding GmbH, a subsidiary of Quantum Capital Partners GmbH, an investment fund management firm. The transaction is anticipated to be completed in the first half of 2024, pending regulatory approvals. This significant acquisition marks EGA's first major investment since its inception a decade ago through the merger of Dubai Aluminium and Emirates Aluminium.

Utilizing renewable energy at its Hannover plant in Germany, Leichtmetall has the capacity to produce up to 30 thousand tonnes annually of aluminium billets, with approximately 80% of the input material being secondary aluminium. Leveraging proprietary inductive melting technology, liquid metal treatment, and casting processes honed over more than four decades, Leichtmetall specializes in manufacturing high-quality products tailored for demanding applications from scrap metal.

The core of Leichtmetall's production encompasses hard alloy billets, boasting diameters of up to 1,150 millimetres. These billets find applications in the manufacturing of high-load bearing extruded profiles and exceptionally large forged components. With a clientele spread across Europe, particularly in Germany, Italy, and France, Leichtmetall has established itself as a reputable supplier in the region.

Aluminium holds the distinction of being infinitely recyclable, requiring 95% less energy for recycling compared to primary production and emitting significantly fewer greenhouse gases.

EGA, presently exporting over 600 thousand tonnes of primary aluminium to Europe annually, serves as a key supplier to various industries in the region, including automotive and construction. Last year, EGA initiated the construction of the UAE's largest aluminium recycling plant in Al Taweelah, boasting an annual production capacity of 170 thousand tonnes. This new facility, operating under the product name RevivAL, will cater to both local and global markets, offering low carbon metal.

Pioneering sustainability initiatives, EGA became the first company to commercially produce aluminium using solar power, commencing operations in 2021. In 2022, EGA produced 57 thousand tonnes of CelestiAL, with a portion sourced from recycled metal in existing production facilities. Notably, BMW Group stands as the inaugural customer for this metal variant, known as CelestiAL-R.

In alignment with the UAE's Net 50 by 2050 Strategic Initiative, EGA has publicly committed to achieving net zero greenhouse gas emissions by 2050. This ambitious goal underscores EGA's steadfast dedication to sustainability and environmental stewardship.