Global mining company Rio Tinto and leading North American metal management business Giampaolo Group have signed an agreement to establish a joint venture focused on manufacturing and marketing recycled aluminum products.
Joint Venture Agreement Overview
Under the agreement, Rio Tinto will acquire a 50% equity stake in Giampaolo Group’s wholly-owned Matalco business for $700 million.
Matalco, a leading producer of recycled aluminum billet and slab products, operates six facilities in the United States and one in Canada. These facilities can produce approximately 900,000 tonnes of recycled aluminum 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.
The joint venture partners will oversee the Matalco management team on strategic decisions, including executive appointments, safety, and ESG standards through a board with equal representation.
Jakob Stausholm, Chief Executive of Rio Tinto, 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 aluminum business. We look forward to providing customers with aluminum 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.”
Matalco: Recycled Aluminum Production
Chris Galifi, CEO of Giampaolo Group Inc., said, “I am delighted to partner with Rio Tinto, a leader in the global aluminum 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. We are extremely proud of the high-quality, low-carbon products we produce. 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 aluminum industry.”
The transaction is subject to customary regulatory approvals and is expected to be completed in the first half of 2024.