EGA Acquires Leichtmetall - European Speciality Foundry

Emirates Global Aluminium, the world's leading producer of Premium Aluminium, has successfully finalized the acquisition of Leichtmetall Aluminium Giesserei Hannover GmbH, marking a significant milestone for the company. The acquisition process, which began with EGA's announcement of its intention to acquire Leichtmetall back in March, has now concluded after obtaining all necessary regulatory approvals and meeting closing conditions. Leichtmetall was purchased from Leichtmetall Holding GmbH, a subsidiary of an investment fund managed by Quantum Capital Partners GmbH.

Operating in Germany, EGA's latest addition is a specialized foundry employing renewable energy to craft up to 30 thousand tonnes annually of billets, with secondary aluminium comprising approximately 80% of its input material. Leichtmetall's production portfolio encompasses hard alloys and large-diameter billets, some reaching up to 1,150 millimetres. These products find applications in manufacturing high load-bearing extruded profiles and sizable forged components.

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.”

This acquisition further fortifies EGA's presence in Europe, complementing its existing business operations. The company already dispatches over 600 thousand tonnes of primary aluminium to Europe each year, serving vital sectors like automotive and construction.

In light of market forecasts, global demand for recycled aluminium is projected to double by 2040. Recycled aluminium is anticipated to contribute significantly to global supply growth, accounting for approximately 60% of the increase by 2030 and around 70% by 2040. Notably, aluminium stands out for its infinite recyclability, requiring a mere 5% of the energy needed for primary production while emitting considerably fewer greenhouse gases. The acquisition of Leichtmetall stands as EGA's first major transaction since its inception a decade ago through the merger of Dubai Aluminium and Emirates Aluminium, underscoring the company's strategic growth trajectory and commitment to sustainable practices in the aluminium industry.