CBA completes acquisition of 80% of Alux and expands recycled-aluminum production capacity

São Paulo, February 01, 2022 – CBA – Companhia Brasileira de Alumínio (CBAV3) – has today, February 01, begun the process of integrating the operation of Alux do Brasil, located in Nova Odessa (SP), after completing the acquisition of an 80% interest in the company and acquiring its control, on Monday, January 31. CBA has an option to purchase the remaining 20% of Alux three years after signing the contract. The deal was unreservedly approved by the Brazilian antitrust authority, CADE, in January. “The acquisition is in line with our long-term strategy of expanding our recycled aluminum capacity and also bolsters our commitment to producing aluminum with an increasingly lower carbon footprint”, says Ricardo Carvalho, CBA’s CEO. The company is already producing low-carbon aluminum and aims to diminish its greenhouse gas emissions by 40% by 2030 in processes ranging from mining through smelting. Integration of the newly acquired operations into CBA will extend over the following 100 days. In this stage, the Company will work to develop and implement logistics, industrial and operational synergies between Alux and CBA’s operations, and to assess broader efficiency opportunities in general. “The integration will use a phased approach involving employees, suppliers and customers, an approach that values and respects people and diversity of culture and ideas to build a solid foundation for future growth,” explains Carvalho.   Secondary alloys market As it is one of the largest suppliers of secondary aluminum alloys in Brazil with clients including major players in the automotive segment, Alux’s plant will enable CBA to enter a new market segment and expand its recycled aluminum production capacity by some 20%. The acquisition bolsters CBA’s position in the recycling sector in Brazil and paves the way for further expansion in the future, including into new markets. Alux do Brasil is one of the largest suppliers of secondary aluminum alloys in Brazil. In its entire history it has produced more than 400 thousand tonnes of recycled aluminum, focusing on the automotive segment with a portfolio of sustainable products including molten aluminum, ingots and tolling. “Bringing Alux into our portfolio maintains CBA as a leading domestic player in aluminum recycling”, adds Carvalho.   More space in the automotive industry – Secondary alloys are primarily used in the automotive industry, a strategic market for CBA in the provision of alloys for wheels, foil, sheet and extruded profiles. These aluminum products are used in structural components and crash management systems, door protection bars and ABS braking systems, as well as other applications. By producing secondary alloys, CBA will also begin supplying part injection manufacturers for combustion engines, pistons and other items. CBA believes that this movement is promising, as the use of aluminum in automotive applications is a global trend, as the metal improves performance, safety and energy consumption of automobiles and enables sustainable vehicle production with high energy efficiency and low CO2 emissions (greenhouse gases).   About CBA Founded in 1955, Companhia Brasileira de Alumínio (CBAV3) is a vertically integrated, sustainable producer of high-quality aluminum products. With hydroelectric generation capacity for 100% of our energy requirement, CBA’s operations span both bauxite mining and processing into primary aluminum (ingots, billets, rod and slabs) and semi-fabricated products (plate, sheet, foil and profiles). Working closely with customers, CBA also develops tailored solutions and services for the packaging and transportation markets, helping customers to produce more lightweight, durable and sustainable products. CBA is here for you. Go to: www.cba.com.brFurther information for the press | FleishmanHillard Andrea Giardino (11) 99150-4565| [email protected] Cesar Augusto Sampaio (11) 99956-3769 [email protected]