Belgium Company Acquires Enron Recycling Unit

Sudamin Ltd., which operates an antimony trioxide producer SICA, has acquired a 100-percent interest in Enron Metall Recycling & Co KG. ``We are delighted to announce the acquisition of this industry leader which continues the former recycling activities of Preussag AG and Metallgesellschaft AG ,'' Thomas Boettcher, managing director of Sudamin in London, said in a statement.

The move marks a ``significant step'' in the company's growth strategy, he added.

Sudamin is a subsidiary of Belgium-based Sudamin Investments SA. The group's non-ferrous metals trading activities are centered in London.

The German recycling unit is the company's first acquisition, a Sudamin official said, adding that others were likely to follow.

``We have a fairly broad remit looking at industrial processing assets within the non-ferrous metals industry,'' he said.

Enron Metall Recycling, which operates four scrap yards in Germany, is the largest European copper scrap company, the official said.

It was formed when Enron Metals unit MG Metall Recycling GmbH & Co. KG bought certain business units of W. & O. Bergmann GmbH & Co. KG and all the assets of Bergmann's Walter Hutzer Metallhandel GmbH subsidiary, both active in trade in non-ferrous metals and metal scrap.

The metals unit, the former Metallgesellschaft brokering and market-making business, was acquired by Enron in July 2000 for around $445 million and sold to Sempra last month for $145 million.

While Enron's European operation was placed under administration last year in the wake of a financial crisis at its Houston-based parent Enron Metals itself was not under administration and remained a viable trading entity throughout the sale process.

Sudamin is a unit of U.S.-based private equity fund Safeguard International L.P., one of whose managing directors is former Metallgesellschaft board chairman Heinz Schimmelbusch.