Rio Tinto & Giampaolo to form JV to meet growing demand for recycled aluminum
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Update time : 2023-07-26 16:54:58
Rio Tinto has reached an agreement with Giampaolo Group, one of the largest fully-integrated metal management organizations in North America, to form a joint venture for the production and sales of recycled aluminum products, aiming to meet the growing demand for low-carbon aluminum. Recycled aluminum is expected to account for more than 50% of US aluminum demand by 2028.
Under the deal, Rio Tinto will acquire a 50% equity stake in Giampaolo Group’s wholly-owned subsidiary Matalco for US$700 million. Matalco is a producer of recycled aluminum billet and slab, operating six facilities in the US and one in Canada, with an annual capacity of recycled aluminum of 900,000 tons.
The transaction is subject to customary regulatory approvals, and it was expected to be completed in the first half of 2024.
