Mining-metal group Rio Tinto has completed a transaction to purchase half of US aluminum recycling company Matalco from owner, the Giampaolo Group, for $700 million (€638 million), subject to final closing adjustments.
The companies will turn Matalco into a 50:50 joint venture. The investment will expand Rio Tinto’s aluminum business in the US, where demand for recycled material is forecast to increase by more than 70% in the decade to 2032, driven by the transportation, construction and packaging sectors, the company said.
CEO Jakob Stausholm added: “We look forward to working in partnership with the Giampaolo Group to support the drive to net zero by expanding recycled production and providing closed-loop recycling solutions to help our customers reduce their carbon footprint.”
Matalco will remain operator of its six sites in the US and one in Canada, which have a combined capacity to handle around 900,000 metric tons per year of recycled aluminum and produce approximately 400,000 metric tons per year of primarily billet but also slabs.
The company has more than doubled its production capacity in the past five years. Together Rio Tinto and Toronto-headquartered Giampaolo will assess opportunities for continued growth, with an initial focus on North America.
The proposed JV was announced mid-year. Its completion follows receipt of all regulatory approvals.
This article was first published by CRU. Learn more about CRU’s services at www.crugroup.com.
Guillaume OsoufRead more from Guillaume Osouf
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