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【Ferro-alloys.com】:Rio Tinto has entered into a joint venture with North American-based Giampaolo Group to manufacture and market recycled aluminium products.

Under the agreement, Rio will acquire a 50 per cent stake in Giampaolo Group’s Matalco business for $US700 million (approximately $AUD1.04 billion).

The supply of of recyclable feed to the joint venture will be managed by Triple M Metal, a subsidiary of Giampaolo Group. Rio will take responsibility of the sales and marketing of the Matalco products.

“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,” Rio chief executive Jakob Stausholm said.

“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.”

The agreement will assist Rio Tinto with providing a broader range of high-quality, low-carbon aluminium products and will also enhance Matalco’s service offering.

According to Rio, recycled aluminium is forecast to account for more than half of US demand by 2028.

Giampaolo Group chief executive officer Chris Galifi said the company is delighted to be partnering with Rio Tinto.

“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,” 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.”

• [Editor:Alakay]