EGA, a leading global aluminum company, has confirmed the acquisition of Leichtmetall, a German company focused on aluminum recycling.

With this acquisition, EGA seeks to strengthen its presence and participation in the recycling market.

EGA, recognized worldwide for its high-quality aluminum production, has announced the acquisition of 100% of Leichtmetall Holding GmbH. This European company focuses on the casting of hard alloys and larger diameter billets using large quantities of recycled aluminum. The transaction is expected to be completed in the first half of 2024, provided it obtains the required regulatory approvals.

At its German plant in Hannover, Leichtmetall uses renewable energy to produce around 30,000 tons of aluminum billets per year. This production is mainly from scrap and uses patented inductive melting and liquid metal treatment technology to ensure the high quality and specifications required in complex applications.

A significant increase in demand for recycled aluminum has been observed in recent years. This is due to an increased awareness of the importance of recycling and the sustainable use of natural resources. In addition, many industries are adopting more environmentally friendly practices and are looking to use recycled materials in their production processes. This trend has led to considerable growth in the aluminum recycling industry, generating employment and promoting a circular economy.

Aluminum is a material that can be infinitely recycled. Compared to the manufacture of new metal, aluminum recycling uses 95% less energy and emits fewer greenhouse gases. Global demand for recycled aluminum is expected to increase significantly, from 27 million tons per year in 2022 to 57 million tons in 2040. It is estimated that recycled aluminum will account for 60% of the total growth in global supply through 2030, and close to 70% between 2030 and 2040.

Last year, EGA announced the construction of an aluminum recycling plant in Al Taweelah that will be the largest in the United Arab Emirates, with an annual production capacity of 170,000 tons. This new facility, called RevivAL, will supply low-carbon metal to local and global markets. In addition, in 2021, EGA became one of the first companies to produce aluminum using solar energy. In 2022, they produced 57,000 tons of CelestiAL and also use recycled metal in their existing facilities. The company has publicly committed to achieving zero net greenhouse gas emissions by 2050 as part of the Net 50 by 2050 Strategic Initiative in the United Arab Emirates.