IMCO Recycling Inc. announced that its German subsidiary, VAW-IMCO Guss und Recycling GmbH, has prepaid in full the redemption liability for the shares in VAW-IMCO owned by Hydro Aluminium Deutschland GmbH.
IMCO Recycling announced in March that it had acquired effective voting control of VAW-IMCO and that, effective March 1, 2003, the subsidiary's accounts would be consolidated into its financial statements.
VAW-IMCO operates aluminum recycling and foundry alloy facilities in Grevenbroich and Toging that are major suppliers to the European auto industry and other large aluminum markets.
In addition, the company said VAW-IMCO has acquired from Hydro an aluminum recycling furnace and related assets and real estate located at and adjacent to a VAW-IMCO facility. The furnace will continue to be used to process material for Hydro under a long-term contract.
The company funded VAW-IMCO's redemption payment using a portion of the proceeds from its October 2003 issuance of senior secured notes due 2010.
The company also said it has acquired full ownership of a Mexican subsidiary in which it previously held an 85 percent interest. The subsidiary's plant is located in Monterrey and recycles aluminum dross and scrap for NEMAK, S.A. under a long-term contract.
This facility was built in 2002. It is located near the NEMAK plant which is the largest cylinder head and engine block casting facility in the Western hemisphere.
Don Ingram, IMCO Recycling's chairman and CEO, said: "We are pleased to complete these transactions because they will strengthen our leadership role in the world aluminum recycling and specialty alloys industry. VAW-IMCO increased its capacity, productivity and processing volume in 2003, and payment of the redemption liability gives us greater financial flexibility to pursue European growth opportunities. Full ownership of our Mexican subsidiary, which also raised its volume in 2003 and began performing additional services for NEMAK, increases our participation in the growing Mexican auto industry. It also effectively positions IMCO for growth opportunities created by the North American Free Trade Agreement.”