1 December 2023
Giampaolo Group and Rio Tinto have completed a transaction to form the Matalco joint venture, combining the strengths of North America’s largest primary and secondary aluminum producers to meet the growing demand from manufacturers for low carbon materials.
Following the receipt of all regulatory approvals, Rio Tinto has acquired a 50% equity stake in the Matalco business from Giampaolo Group, subject to usual closing adjustments.
As Rio Tinto begins to market Matalco products, they will be able to offer customers a full suite of low-carbon primary aluminum made with hydropower and a diverse portfolio of recycled aluminum solutions.
Matalco will remain the operator of the joint venture’s six facilities in the United States and its Canadian site, which together have a capacity to produce approximately 900,000 tonnes of recycled aluminum per annum. Matalco will also continue to provide closed-loop solutions to transform customers’ scrap into high-quality aluminum slab and billet. The joint venture will enhance Matalco’s current service offering to a wider array of customers, while securing access for low-carbon primary metal for its operations.
The investment will expand Rio Tinto’s aluminum business into the US, where demand for recycled aluminum is forecast to increase by more than 70% from 2022 to 2032, driven by the transportation, construction, and packaging sectors. Over the same period, global recycled aluminum consumption is forecast to grow by more than 60%.
Over the last five years, Matalco has 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.
Giampaolo Group Inc. Chief Executive Officer Chris Galifi said: “We are thrilled about beginning our partnership with Rio Tinto, on forming a joint venture for Matalco. This collaboration showcases our dedication to continuously evolving our production of high-quality, low-carbon aluminum. We look forward to continuing to grow with our new partners while providing products that support sustainability.”
Rio Tinto Chief Executive Jakob Stausholm said: “Creating the Matalco joint venture gives Rio Tinto a leading position in the rapidly growing North American recycled aluminum market, allowing us to offer a full complement of low-carbon recycled products. We look forward to working in partnership with Giampaolo Group to support the drive to net zero by expanding recycled production and providing closed-loop recycling solutions to help our customers reduce their carbon footprint.”
[1] Source: CRU Aluminium Long Term Market Outlook, December 2022