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EGA completes acquisition of Leichtmetall, European speciality foundry in high- strength recycled aluminium
United Arab Emirates, 3 May 2024: Emirates Global Aluminium, the largest ‘premium aluminium’ producer in the world, today announced the completion of the acquisition of Leichtmetall Aluminium Giesserei Hannover GmbH.
EGA announced its intention in March to acquire Leichtmetall from Leichtmetall Holding GmbH, a subsidiary of an investment fund managed by Quantum Capital Partners GmbH. The transaction has now cleared all required regulatory approvals and closing conditions.
EGA’s new German operation is a European specialty foundry that uses renewable energy to produce up to 30 thousand tonnes per year of billets, with secondary aluminium as some 80 per cent of input material.
Production at Leichtmetall includes hard alloys and larger diameter billets up to 1,150 millimetres, with uses including manufacturing high load bearing extruded profiles and very large forged components.
Leichtmetall adds to EGA’s existing business in Europe. EGA already exports over 600 thousand tonnes of primary aluminium to the European continent each year, and is a significant supplier for industries including automotive and construction.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “I am pleased to welcome our new Leichtmetall colleagues in Hannover to EGA. Becoming part of the biggest ‘premium aluminium’ producer in the world will give Leichtmetall new strength for its customers and to grow. For EGA, today is an important early milestone in our drive to build an aluminium recycling business in Europe, where we are already a major primary aluminium supplier, and around the world.”
Thomas Witte, Chief Executive Officer of Leichtmetall, said: “This is an exciting moment for Leichtmetall, as we join forces with one of the biggest and most ambitious aluminium producers in the world and a major aluminium supplier in Europe. I am confident that as part of EGA we will be able to serve our customers even better, and develop our business further.”
Market analysts expect global demand for recycled aluminium to double by 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.
Aluminium is infinitely-recyclable. Recycling aluminium requires 95 per cent less energy than making new metal, generating a fraction of the greenhouse gas emissions.
The acquisition of Leichtmetall is EGA’s first major transaction since the company’s formation a decade ago through the merger of Dubai Aluminium and Emirates Aluminium.
ENDS