ABU DHABI, UAE – Emirates Global Aluminum, the largest ‘premium aluminum’ producer in the world, on Thursday announced the signing of a binding sale and purchase agreement for the acquisition of a German aluminum recycling firm, Leichtmetall Aluminum Giesserei Hannover GmbH.
Leichtmetall is a European specialty foundry, with production including hard alloys and larger diameter billets with high proportions of secondary aluminum.
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 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 millimeters 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.
Abdulnasser bin Kalban, Chief Executive Officer of Emirates Global Aluminum, said, “This acquisition provides EGA a platform to develop a recycling business close to our customers in Europe, contributing to the emerging circular economy and building on our existing position as one of the biggest importers of primary aluminum on that continent. Leichtmetall will grow as part of EGA”
He said, “The acquisition of Leichtmetall adds significant value and alongside the recycling facility we are building in Abu Dhabi, is just the first step for EGA in capturing growth opportunities worldwide in low carbon primary and recycled aluminum, expanding our business and enabling us to reach net zero greenhouse gas emissions by 2050.”
Adel Abubakar, Chief Marketing Officer of Emirates Global Aluminum, said, “The acquisition of Leichtmetall greatly enhances our ability to meet European high-end aluminum demand, operationally and commercially, as well as contributing to our carbon emissions reduction aspirations.”
He said, “Leichtmetall and the 170 thousand tonnes per year aluminum recycling facility we are building in the UAE are together a strong combination which will be part of shaping the future EGA, enabling us to support our global customers in meeting their future carbon intensity and properties requirements for their metal.”
Thomas Witte, Chief Executive Officer of Leichtmetall, said, “Becoming part of EGA, the largest ‘premium aluminum’ producer in the world, will unlock additional capital and resources for Leichtmetall to grow our business further, continue developing our technology, and strengthen our ability to partner with international customers in Europe and beyond.”
He said, “This transaction is great news for our existing customers and will help us secure new opportunities, while playing a key role in the growth of EGA’s wider recycling business.”
Steffen Görig, Chief Executive Officer of Quantum Capital Partners GmbH (QCP), said, “As a manager of specialty carve-out investment funds, our job is to enable high potential companies like Leichtmetall to develop and prosper. When Leichtmetall came under our wing 10 years ago, it was an overlooked operation with a limited customer base.”
He said, “Under Quantum Capital Partners ownership and Thomas Witte’s extraordinary leadership, Leichtmetall has developed into an innovative, sustainable supplier of speciality products that are highly-valued across multiple industries. Leichtmetall’s slogan is ‘making aluminum stronger’. With this transaction, we are making Leichtmetall stronger, trusting EGA to take the company to the next level.”
The transaction is EGA’s first major acquisition since the company was formed through the merger of Dubai Aluminum and Emirates Aluminum a decade ago.
Leichtmetall uses renewable energy at its plant in Hannover, Germany, to produce up to 30 thousand tonnes per year of aluminum billets with secondary aluminum as some 80 per cent of input material.