IMCO Recycling Inc. announced that its German subsidiary, VAW-IMCO Guss und Recycling GmbH, has signed a long-term agreement to supply molten aluminum alloys to DaimlerChrysler AG.
The metal to be supplied under the agreement will serve as a base load for a new recycling facility that the company will build in Deizisau, Germany, near DaimlerChrysler AG's foundry in Stuttgart. The plant is expected to begin operations in early 2006 and will have about 40 employees.
VAW-IMCO currently supplies molten aluminum alloys to this customer from its Toeging plant in Bavaria. The metal is delivered via a heating station installed close to the DaimlerChrysler foundry. The company said it expects the volume of its Toeging facility that is now provided to DaimlerChrysler AG to be replaced by other business.
Richard L. Kerr, president and chief executive officer of IMCO, said the company specializes in the just-in-time delivery of molten metal that will be provided to DaimlerChrysler AG. "This delivery method, in which we use utilize customized trucks and refractory-lined crucibles, lowers customers' energy, labor, maintenance and capital expenses as well as melt loss, thus increasing their productivity.
"We are pleased to reach this agreement because it further broadens our participation in the transportation sector, the largest and fastest-growing aluminum market."
Kerr said the aluminum content of vehicles manufactured throughout the world "has risen significantly over the past decade. This increase has occurred because the use of aluminum instead of traditional materials lowers fuel consumption and emission, improves vehicle safety and performance, extends service, in part through less corrosion, and provides much higher end-of-life value."
IMCO Recycling also announced that VAW-IMCO will start operations in December at a new facility which will produce magnesium from scrap. About 90 percent of the output of the plant, which is being built next to the Toeging facility, will be provided to the European auto industry.
The magnesium plant will have a rated annual capacity of 15,000 metric tons and is expected to begin operating at a rate of 5,000 metric tons per year in the first quarter of 2005. It will recycle magnesium scrap and produce cast magnesium ingots.
VAW-IMCO is Europe's leading recycler of aluminum casting alloys. Its foundry alloy and aluminum recycling facilities in Grevenbroich and Toeging specialize in the processing of chips, turnings, auto scrap and dross. These plants are a leading supplier of specialty alloys to the European auto industry.
IMCO Recycling Inc. is one of the world's largest recyclers of aluminum and zinc. The company has 21 U.S. production plants and, in addition to VAW-IMCO's two German facilities, has three international plants located in Brazil, Mexico and Wales. IMCO Recycling's headquarters office is in Irving, Texas.