IMCO Recycling Inc. has signed an agreement under which its 50 percent-owned joint venture in Germany, VAW-IMCO Guss und Recycling GmbH, will redeem the shares in the joint venture held by Hydro Aluminium Deutschland GmbH (formerly VAW aluminium AG).
The redemption will result in VAW-IMCO becoming a wholly owned subsidiary of IMCO Recycling Inc. In 2002 VAW-IMCO's revenues totaled $245.6 million, and reported a net income of $4.232 million.
VAW-IMCO operates two aluminum recycling and foundry alloy facilities in Germany. It is a leading supplier of specialty alloys to the European auto industry and also serves other aluminum markets.
Don Ingram, chairman and CEO of IMCO Recycling, said full ownership of VAW-IMCO "is an important step in the ongoing expansion of our international operations. These facilities are highly efficient and provide an excellent platform for further growth in Europe.
"The annual processing capacity of VAW-IMCO has been more than doubled since its formation and will be increased again this year through the addition of IMCO-designed furnaces. The management of VAW-IMCO will now direct all of our European activities including the operation of our wholly owned aluminum recycling facility in Swansea, Wales."
IMCO Recycling expanded its international operations in 2002 through the acquisition of an aluminum recycling plant in Brazil and construction of a new processing facility operated by a Mexican joint venture in which it owns an 85 percent interest.
Under long-term contracts, the Brazilian plant is supplying that country's only can sheet rolling mill and is also recycling used beverage cans for a facility owned by South America's largest manufacturer of aluminum cans. The Mexican joint venture facility recycles aluminum alloy dross and manufacturing scrap under a long-term contract with NEMAK, S.A., Monterrey, a leading manufacturer of cylinder heads and engine blocks.