Rio Tinto and Giampaolo Group, a North American metal management business, will form a joint venture to manufacture and market recycled aluminum products. The transaction reflects the joint venture's commitment to meeting the increasing demand for low-carbon aluminum as a key material in the energy transition.
Under the terms of the agreement, Rio Tinto will acquire a 50 percent equity stake in Giampaolo Group's wholly-owned Matalco business.
Matalco is a producer of high-quality recycled aluminum billet and slab products. It operates six facilities in the United States and one in Canada, with the capacity to produce approximately 900,000 tonnes of recycled aluminum per annum.
Giampaolo Group subsidiary Triple M Metal will be responsible for the supply of recyclable feed to the joint venture with Matalco's leadership team continuing to manage its operations. Rio Tinto will be responsible for the sales and marketing of Matalco products.
The joint venture partners will provide oversight to the Matalco management team on matters such as strategic decisions, including executive appointments, safety and ESG standards through a board with equal representation.
The joint venture will enable Rio Tinto to provide a larger range of low-carbon, primary, recycled, and blended aluminum products. The joint venture will also enhance Matalco's current offering while securing access to low-carbon primary metal for its operations.
The transaction is subject to customary regulatory approvals and is expected to be completed in the first half of 2024.
