Emirates Global Aluminium, the largest ‘premium aluminium’ producer in the world, today announced the signing of a binding sale and purchase agreement for the acquisition of a German aluminium recycling firm, Leichtmetall Aluminium Giesserei Hannover GmbH.
Leichtmetall is an European specialty foundry, with production including hard alloys and larger diameter billets with high proportions of secondary aluminium.
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 millimetres 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, CEO of Emirates Global Aluminium (EGA), highlights the significance of acquiring Leichtmetall, which strengthens EGA's presence in Europe and aligns with their goal of contributing to the circular economy. The acquisition positions EGA to expand globally in low-carbon primary and recycled aluminium, aiming for net-zero greenhouse gas emissions by 2050.
Adel Abubakar, EGA's Chief Marketing Officer, emphasizes how Leichtmetall complements EGA's capabilities in meeting European aluminium demand and reducing carbon emissions.
Thomas Witte, CEO of Leichtmetall, anticipates growth opportunities and enhanced partnerships with EGA, benefiting existing and new customers.
Steffen Görig, CEO of Quantum Capital Partners GmbH (QCP), expresses confidence in EGA's ability to elevate Leichtmetall's business and acknowledges their transformative journey under QCP's ownership.
The landmark transaction is EGA’s first major acquisition since EGA was formed through the merger of Dubai Aluminium and Emirates Aluminium a decade ago.
Leichtmetall uses renewable energy at its plant in Hannover, Germany, to produce up to 30 thousand tonnes per year of aluminium billets with secondary aluminium as some 80 per cent of input material.
News Source: Emirates News Agency
