Rio Tinto, Giampaolo Group forge JV to boost recycled aluminium production

Rio Tinto, the multinational metals and mining corporation, and Giampaolo Group, a prominent metal management business in North America, have agreed to establish a joint venture that aims to produce and sell recycled aluminium products.

The joint venture aligns with the companies’ shared commitment to addressing the growing demand for low-carbon aluminium, seen as a pivotal material in transitioning to cleaner energy sources.

Under the terms of the agreement, Rio Tinto will acquire a 50% equity stake in Matalco, Giampaolo Group’s wholly-owned business, for $700 million, subject to usual closing adjustments. Matalco is a leading producer of top-quality recycled aluminium billet and slab products, operating seven facilities in North America with the capacity to produce approximately 900,000 tonnes of recycled aluminium annually.

The supply of recyclable feed to the joint venture will be handled by Triple M Metal, a Giampaolo Group subsidiary, while Matalco’s existing leadership team will continue to manage operations. After a transition period post-transaction completion, Rio Tinto will be responsible for the sales and marketing of Matalco’s products.

The joint venture will empower Rio Tinto to offer a wider range of high-quality and low-carbon primary, recycled, and blended aluminium products. This comes at a crucial time as customers are seeking to reduce their carbon footprints. The partnership is also expected to enhance Matalco’s service offering to a broader range of customers and secure access to low-carbon primary metal for its operations. Recycled aluminium is projected to fulfil more than half of United States demand by 2028.

The joint venture will operate under the supervision of a board with equal representation from both companies, offering guidance on strategic decisions, safety and ESG standards. The transaction, still subject to customary regulatory approvals, is anticipated to be completed in the first half of 2024.