Rio Tinto, Giampaolo Group complete Matalco aluminium recycling transaction

Rio Tinto and Giampaolo Group announced that they have completed a transaction to form the Matalco joint venture, combining the strengths of North America’s largest primary and secondary aluminium 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 for $700M, subject to usual closing adjustments. The investment will expand Rio Tinto’s aluminium business in the US, where demand for recycled aluminium is forecast to increase by more than 70% from 2022 to 2032. 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 aluminium per annum. Rio Tinto CEO Jakob Stausholm said: “Creating the Matalco joint venture gives Rio Tinto a leading position in the rapidly growing North American recycled aluminium 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.”