Anglo-Australian mining behemoth Rio Tinto Group said last week that it has partnered with North American metal management firm Giampaolo Group to start a joint venture to manufacture and market recycled aluminium products.
Rio Tinto will acquire half of Giampaolo’s wholly-owned subsidiary Matalco as part of the deal at a cost of US$700 million. Under the terms of the joint venture, Giampaolo subsidiary Triple M Metal will supply recyclable aluminium to the project, while Matalco’s leadership team will stay in place. After a transition period, Rio Tinto will assume responsibility for sales and marketing.
In a press release, Rio Tinto Chief Executive Jakob Stausholm said that this is part of the firm’s effort at delivering more recycling options to its clientele.
“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.”
Giampaolo Group Inc. CEO Chris Galifi noted the synergies between the two firms that this agreement will build upon.
“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 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.”
Assuming the standard regulatory burden is met in a timely fashion, Rio Tinto estimates that the deal will close in the first half of next year.