Emirates Global Aluminium has announced a significant expansion project for its subsidiary, Lech-Stahl, located in Germany.
The new facility, situated near Hanover, aims to enhance Lech-Stahl’s recycling operations by more than six times, increasing scrap sorting capacity by approximately 110,000 tons annually, while also raising smelting and casting capabilities by 153,000 tons per year. The total investment for this initiative is estimated at around $170 million, with production expected to commence by 2028.
Currently, Lech-Stahl in Hanover has a smelting and casting production capacity of about 30,000 tons per year. This new facility will be among the first globally to integrate an advanced scrap sorting system, cutting-edge smelting technologies, and a comprehensive salt recovery network, all in one location.
Emirates Global Aluminium also operates the Spectro Alloys plant in Minnesota, USA, where it has recently completed the first phase of expansion using similar sorting technologies. The second phase is currently underway, aiming to increase Spectro’s total production capacity to 200,000 tons annually by 2027. Additionally, the company is nearing the completion of the largest aluminum recycling plant in the UAE.
Abdul Nasser Bin Kalban, CEO of Emirates Global Aluminium, stated: “Producing high-quality aluminum from post-consumer scrap poses significant technical challenges within the aluminum recycling sector and is a crucial strategic driver to meet the demands of advanced European industries like automotive and aerospace, ensuring superior performance alongside enhanced environmental sustainability. The new Lech-Stahl site will be one of the most advanced facilities globally, enabling greater use of aluminum scrap in high-demand applications. This initiative will also strengthen Emirates Global Aluminium’s role as a key partner in Europe’s journey towards a more sustainable future. We will leverage the expertise gained from expanding our Minnesota operations to implement best practices in this new German project.”
Europe ranks as the third-largest market for recycled aluminum globally, following the United States and China. Currently, recycled aluminum accounts for about 40% of the total European demand, equivalent to approximately 4.9 million tons annually. Demand for recycled aluminum is projected to rise to 7.2 million tons annually by 2033, according to CRU, an independent research and data analytics firm.
Emirates Global Aluminium serves as a major supplier of primary aluminum to Europe, exporting over 600,000 tons annually to European markets. The European automotive sector is the largest consumer of Celestial aluminum, produced using solar energy by the company.
The new Lech-Stahl plant will be equipped with advanced sorting systems utilizing X-ray and laser technologies to segregate scrap based on alloys, quality grades, and impurity levels. These innovations will expedite the scrap processing, enabling Lech-Stahl to use its decades of expertise to produce high-quality aluminum from post-consumer scrap for the first time.
The new facility will rely on energy-efficient furnaces that can be adapted for hydrogen use in the future. The casting lines will produce secondary alloys that include most wrought aluminum alloys, as well as cast bars with varying low and high iron levels.
Salt is utilized in aluminum recycling processes to capture impurities, resulting in waste known as “salt slag.” At the new Lech-Stahl facility, most salt will be recycled for operational use. Solid waste will be limited to aluminum hydroxide, suitable for use in cement manufacturing, and some non-aluminum metal impurities.