Diversified major Rio Tinto has wrapped up the acquisition of a 50% equity stake in the Matalco business from Giampaolo Group for $700-million.
The transaction combines the strengths of North America’s biggest primary and secondary aluminium producers.
Matalco will remain the operator of the joint venture's six facilities in the US and its Canadian site, which together have a capacity to produce about 900 000 t/y of recycled aluminium. Matalco will also continue to provide closed-loop solutions to transform customers' scrap into high-quality aluminium slab and billet.
For the eight-month period ending on September 30, 2023, Matalco produced 400 000 t of recycled aluminium, including 78% billet and 22% slab.
Over the last five years, Matalco more than doubled its production capacity. Rio Tinto and Giampaolo Group will be working together to assess opportunities to continue growing the Matalco business and expand output, with an initial focus on North America.
Rio Tinto will market Matalco products, offering customers a full suite of aluminium products, including low-carbon primary aluminium made with hydropower and a diverse range of recycled aluminium solutions.