EGA, Century Aluminum team up to build first US smelter in 50 years

Emirates Global Aluminium (EGA) and Century Aluminum Company (NASDAQ: CENX) have entered into a joint development agreement to build the first new primary aluminum production plant in the United States since 1980.

The plant, to be built in Inola, Oklahoma, is expected to produce 750,000 tonnes of aluminum per year, larger than previously envisioned and more than doubling current US production, the companies said in a press release on Tuesday.

The project, named Oklahoma Primary Aluminum, would combine EGA’s expertise in aluminum smelting design and technology, construction and operation, with Century’s history and experience operating aluminum smelters in the US utilizing domestic supply chains.

Once complete, the Inola plant will be the largest ever primary aluminum production plant in the country, and the first built in nearly 50 years, Century said, noting that about 85% of the aluminum needs of American industries are currently met by imports.

The project is expected to create 1,000 permanent direct jobs at the facility and 4,000 jobs during the construction period. EGA will own 60% of the joint venture, with Century holding the remaining 40%.

“By establishing an aluminum hub in Oklahoma, we are strengthening and shortening the supply chain for a critical metal that supports American industries,” Century Aluminum CEO Jesse Gary said in a news release. “Today’s announcement highlights the multiplier effect of revitalizing domestic production — attracting new infrastructure investment and creating jobs in adjacent industries.”

The US Aluminum Company, founded by the Plotkin family, owners of aluminum fabrication company M-D Building Products, said in a separate statement that it has signed an agreement with both companies to explore the development of an aluminum fabrication plant near the new smelter.

The goal of the partnership is to build a plant near the smelter to turn liquid aluminum into products for the electrical, defense, aerospace, automotive and machinery industries, US Aluminum said.

“This project will help make Oklahoma – especially Inola – one of the top places in America to manufacture aluminum products, while creating thousands of new jobs for Oklahomans,” EGA chief executive officer Abdulnasser Bin Kalban said. “We’re proud to sign our first downstream exploratory agreement before the smelter is even built.”

Construction of Oklahoma Primary Aluminum is expected to begin by the end of 2026, targeting first production by the end of the decade.