Rio enters recycling JV

Rio Tinto has entered a recycling partnership with America’s largest fully integrated metal management business Giampaolo Group to form a joint venture to manufacture and market recycled aluminium products.

Rio says the deal reflects a commitment to meeting the increasing demand for low-carbon aluminium as a critical material in the energy transition.

Under the deal, Rio will acquire a 50% equity stake in Giampaolo Group’s wholly owned Matalco business for $700 million, subject to usual closing adjustments.

Matalco is a leading producer of high-quality recycled aluminium billet and slab products.

It operates six facilities in the United States and one in Canada, which can produce approximately 900,000 tonnes of recycled aluminium per annum.

Giampaolo Group subsidiary Triple M Metal will be responsible for the supply of recyclable feed to the joint venture, with Matalco’s leadership team continuing to manage its operations.

Rio Tinto will be responsible for the sales and marketing of Matalco products following a transition period after the completion of the transaction.

Rio CEO Jakob Stausholm said the joint venture would enable Rio Tinto to provide a broader range of high-quality and low-carbon, primary, recycled, and blended aluminium products when customers seek solutions to lower their carbon footprint.

He said the joint venture would also enhance Matalco’s current service offering to a broader array of customers while securing access to low-carbon primary metal for its operations.

Recycled aluminium is forecast to account for more than half of United States demand by 2028.

“Investing in recycling is part of our drive to find better ways to deliver the low-carbon materials the world needs and provides a natural extension of our industry-leading primary aluminium business,” Mr Stausholm said.

“We look forward to providing customers with aluminium solutions that meet their needs for low-carbon primary and recycled materials in partnership with Giampaolo Group, a leader in providing recycled material in North America.”

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