Emirates Global Aluminium, the largest ‘premium aluminium’  producer in the world, 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 a 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 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. 

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, Chief Executive Officer of Emirates Global Aluminium, 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 aluminium on that continent. Leichtmetall will grow as part of EGA.  The acquisition of Leichtmetall adds significant value to EGA 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 aluminium, expanding our business and enabling us to reach net  zero greenhouse gas emissions by 2050.” 

Adel Abubakar, Chief Marketing Officer of Emirates Global Aluminium, said: “The acquisition of  Leichtmetall greatly enhances our ability to meet European high-end aluminium demand,  operationally and commercially, as well as contributing to our carbon emissions reduction aspirations.  Leichtmetall and the 170 thousand tonnes per year aluminium 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 aluminium’ 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. 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. 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 aluminium stronger’. With this transaction, we are making Leichtmetall stronger, trusting  EGA to take the company to the next level.”