UAE's Global Aluminum Expands Spectro Alloys Plant in the U.S.

Emirates Global Aluminium (EGA), the world's largest premium aluminum producer, is expanding its Spectro Alloys recycling plant in Minnesota for the second time. The new expansion will boost the facility's capacity by 45,000 tons annually, bringing total production to over 200,000 tons per year by 2027. This move comes as demand for recycled aluminum in the US is expected to reach 8 million tons annually by 2034.

The expansion includes a new scrap melting furnace and mixing unit. EGA completed the first phase of expansion in July this year, which added 55,000 tons of production capacity. The recycled aluminum products are sold under EGA's "Revival" brand.

"This next phase represents an important step toward strengthening our US operations and meeting strong demand for our high-quality 'Made in America' primary and recycled aluminum products," said Abdulnasser Bin Kalban, EGA's CEO.

The timing is strategic. The US ranks as the world's second-largest recycled aluminum market, and domestic demand is growing fast. Independent research firm CRU projects that US recycled aluminum demand will nearly double over the next decade.

But EGA isn't stopping at recycling. In Oklahoma, the company is building America's first new primary aluminum smelter since 1980. That facility will produce 600,000 tons annually - double the current total US aluminum production. The scale shows how much America's aluminum manufacturing has shrunk over recent decades.

Back home in the UAE, EGA is also constructing what will be the region's largest aluminum recycling plant in Al Taweelah. That facility will produce 170,000 tons of aluminum billets annually and should start operations in the first half of 2026.

The expansion spree reflects broader market dynamics. Recycled aluminum uses 95% less energy than producing new aluminum from raw materials. With companies under pressure to reduce carbon footprints, recycled aluminum demand is surging across industries from automotive to packaging.

For investors, EGA's US expansion represents a bet on reshoring - the trend of bringing manufacturing back to America. Trade tensions and supply chain disruptions have made domestic production more attractive, even if costs are higher.

EGA acquired an 80% stake in Spectro Alloys in 2024, giving it a foothold in the US market. The Minnesota plant's location provides access to abundant scrap metal from the industrial Midwest and serves growing demand from manufacturers looking to source materials domestically.

The company's dual approach - both recycling and primary production - positions it well to capture different market segments. Recycled aluminum commands premium prices due to its environmental benefits, while primary aluminum serves applications requiring specific material properties.