Major Rio Tinto and North American fully-integrated metal management business Giampaolo Group have entered into an agreement to form a joint venture (JV) to manufacture and market recycled aluminium products.
Matalco is a leading producer of high-quality recycled aluminium billet and slab products. It operates six facilities in the US and one in Canada, with the capacity to produce approximately 900 000 t/y of recycled aluminium.
Giampaolo Group subsidiary Triple M Metal will be responsible for the supply of recyclable feed to the JV with Matalco’s leadership team continuing to manage its operations. Rio will be responsible for sales and marketing of Matalco products following a transition period after completion of the transaction.
The JV partners will provide oversight to the Matalco management team on matters such as strategic decisions, including executive appointments, safety and environmental, social and governance standards through a board with equal representation.
The JV will enable Rio to provide a broader range of high-quality and low-carbon, primary, recycled, and blended aluminium products, at a time when customers are looking for solutions to lower their carbon footprint, the miner said.
“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. 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,” said Rio CEO Jakob Stausholm.
The JV will also enhance Matalco’s current service offering to a wider array of customers, while securing access for low-carbon primary metal for its operations. Recycled aluminium is forecast to account for more than half of US demand by 20282.
“I am delighted to partner with Rio Tinto, a leader in the global aluminium industry. We have steadily invested within the recycling supply chain and have grown the Matalco business over the past 18 years, based on our strategy focussing on a circular economy, and are extremely proud of the high-quality, low-carbon products we produce,” Giampaolo Group CEO Chris Galifi said.
“Giampaolo Group and Rio Tinto have an excellent track record of creating successful collaborations to unlock value for customers and we look forward to joining forces to combine our complementary expertise in the recycling value chain with their experience and track record of innovation in the primary aluminium industry.”
The transaction is subject to customary regulatory approvals and is expected to be completed in the first half of 2024.