Spectro Alloys expansion to add 55,000 tonnes of secondary billet production capacity by 2026

Emirates Global Aluminium (EGA), the largest industrial company in the UAE outside of oil and gas and the world’s leading producer of premium aluminium, has announced the completion of civil works for the expansion project at its U.S. recycling subsidiary, Spectro Alloys.

Source- EGA webiste

Construction began in March’24

Construction began in March 2024, culminating in a 90,000-square-foot addition. This new facility enables Spectro Alloys to broaden its product range by producing billet from post-consumer aluminium scrap.

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said, “The completion of the civil works is an important milestone in the expansion of Spectro Alloy’s recycled aluminium production and our ambitions to grow EGA’s recycling business in the United States. The full completion of this project will strengthen our business in the United States, which is already one of our largest markets.”

About the project

The project’s first phase will add 55,000 tonnes of secondary billet production capacity, with initial hot metal production expected early in the second half of 2025. Full production ramp-up is projected for the first quarter of 2026. Aluminium billet is a key raw material for extruders, who shape it into various products such as railings, window and door trim, and structural components for vehicles, boats, airplanes, trailers, docks, and more.

With the completion of phase one of the expansion, the facility will undergo equipment assembly and calibration over the coming months, with initial production slated for the second half of this year. Full production is anticipated by the first quarter of 2026, according to Spectro Alloys. The new facility is expected to create approximately 50 new jobs and increase Spectro’s recycling capacity by nearly 120 million pounds annually

In September 2024, Emirates Global Aluminium (EGA) acquired an 80 per cent stake in Spectro Alloys, advancing its global expansion into aluminium recycling and strengthening its presence in the United States, one of its largest international markets. Spectro Alloys, based in Rosemount, Minnesota, is a leading producer of secondary foundry alloys with a current annual production capacity of approximately 110,000 tonnes of aluminium ingots.

President of Spectro Alloys, Luke Palen, commented, “This increase in capacity and capabilities means Spectro will have a greater impact on recycling rates in Minnesota, on meeting the needs of sustainable manufacturers, and on advancing the increasingly vital circular economy.”

A $71 million expansion project

In September 2023, the company unveiled a $71 million expansion project to meet the rising demand for recycled aluminium sheets and extrusion. This growth is fuelled by increasing consumer preference for sustainable products, adherence to green building standards, the need for a reliable domestic supply chain, and the cost advantages of using recycled materials.

According to CRU, an independent business intelligence organisation, demand for recycled aluminium in the United States will reach approximately 7.6 million tonnes annually by 2033. Currently, the United States ranks as the world’s second-largest market for recycled aluminium.