Rio Tinto Concluded Strategic Stake Acquisition in Matalco

SEATTLE (Scrap Monster): Mining major Rio Tinto announced that it has completed the strategic acquisition of 50% stake in the Matalco business from Giampaolo Group for $700 million, following the receipt of all regulatory approvals. The transaction creates a recycling joint venture that combines the strengths of North America's largest primary and secondary aluminium producers.

The investment is projected to expand Rio Tinto’s aluminium business in the U.S., where recycled aluminum demand is predicted to record significant surge by more than 70% by 2032, when compared to 2022 levels. It must be noted that the global demand for recycled aluminum is forecast to record 60% surge during the same period.

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The six facilities of the joint venture in the U.S., along with its Canada facility will be operated by Matalco. These facilities together has a production capacity of nearly 900,000 tonnes of recycled aluminium per year. Rio Tinto and Giampaolo Group will explore Matalco’s business growth opportunities and ensure increased output, with initial focus on North America.

By creating the Matalco joint venture, Rio Tinto has reaffirmed a leading position in the rapidly growing North American recycled aluminium market. The partnership aims to offer closed-loop recycling solutions to reduce carbon footprint.