Rio Tinto and Giampaolo Group Forge Powerful Partnership in Matalco Joint Venture
In a groundbreaking move, industry giants Rio Tinto and Giampaolo Group proudly announce the successful completion of a transformative transaction, marking the establishment of the Matalco joint venture. This strategic alliance leverages the collective prowess of North America’s premier primary and secondary aluminum producers to address the burgeoning demand for eco-friendly materials from manufacturers.
Fueling Growth: Rio Tinto’s 50% Equity Stake in Matalco
With all regulatory approvals secured, Rio Tinto acquires a 50% equity stake in the Matalco business from Giampaolo Group for a noteworthy $700 million, subject to customary closing adjustments. This transaction positions Rio Tinto to offer customers a comprehensive suite of aluminum products, encompassing low-carbon primary aluminum produced with hydropower and an extensive range of recycled aluminum solutions.
Expanding Horizons: Rio Tinto’s Investment in the US Aluminum Market
As Rio Tinto embarks on the marketing journey for Matalco products, the investment serves to expand Rio Tinto’s aluminum business in the United States. Forecasts indicate a staggering 70% surge in demand for recycled aluminum from 2022 to 2032, driven by the transportation, construction, and packaging sectors. Concurrently, global recycled aluminum consumption is anticipated to grow by over 60% during the same period.
Matalco’s Continued Leadership in Recycling Innovation
Matalco, retaining its role as the operator of the joint venture’s six facilities in the United States and its Canadian site, boasts a production capacity of approximately 900,000 tonnes of recycled aluminum annually. The company will persist in offering closed-loop solutions, transforming customers’ scrap into high-quality aluminum slab and billet. Impressively, Matalco doubled its production capacity over the last five years.
Strategic Growth Plans: Assessing Opportunities and Expanding Output
Rio Tinto and Giampaolo Group are set to collaboratively assess opportunities for further growth within the Matalco business, focusing initially on North America. This joint effort underscores their commitment to shaping the future of the recycled aluminum market and expanding production output.
Leadership Insight: Rio Tinto Chief Executive and Giampaolo Group CEO Share Perspectives
Expressing enthusiasm about the venture, Rio Tinto Chief Executive Jakob Stausholm emphasizes the leading position attained in the rapidly growing North American recycled aluminum market. The collaboration with Giampaolo Group aligns with Rio Tinto’s commitment to supporting net-zero goals by enhancing recycled production and offering closed-loop recycling solutions to minimize carbon footprints.
Giampaolo Group CEO Chris Galifi echoes the sentiment, expressing excitement about the partnership with Rio Tinto and the joint venture for Matalco. He emphasizes their dedication to evolving production practices, delivering high-quality, low-carbon aluminum products, and looks forward to sustained growth alongside new partners, all while championing sustainability.
This monumental partnership signifies a pivotal moment for the aluminum industry, propelling Matalco into a position of influence as a leading force in North American recycled aluminum production. Together, Rio Tinto and Giampaolo Group are set to shape a sustainable and innovative future for the industry.
Source: CRU Aluminium Long Term Market Outlook with additional information added by GlassBalkan
