Rio Tinto enters $1b joint venture to manufacture and market recycled aluminium products

Rio Tinto (ASX:RIO) has entered a joint venture with Giampaolo Group to manufacture and market recycled aluminium products.

One of North America’s largest fully integrated metal management businesses, Giampaolo Group focuses on harvesting waste within the metal ecosystem by operating within the manufacturing, recycling and IT asset disposition space.

Giampaolo chief executive Chris Galifi said the company is excited to partner with Rio Tinto.

“I am delighted to partner with Rio Tinto, a leader in the global aluminium industry,” he said.

“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.”

Under the joint venture agreement, Rio will acquire a 50% equity stake in Giampaolo’s wholly owned Matalco business for US$700m (A$1.03b).  

A leading producer of high-quality recycled aluminium billet and slab products, Matalco operates six facilities across the United States and Canada, with the capacity to produce around 900,000t of recycled aluminium per year.

Triple M Metal, a Giampaolo subsidiary, will be responsible for the supply of recyclable feed to the joint venture while Rio will be responsible for the sale and marketing of Matalco products.

Rio chief executive Jakob Stausholm commented on the agreement.

“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,” he said.

The transaction is subject to customary regulatory approvals and is expected to be completed in the first half of 2024.