IMCO Looks to Increase European Presence

IIMCO Recycling Inc. has exercised its rights to elect to cause its 50 percent-owned German joint venture, VAW-IMCO Guss und Recycling GmbH, to redeem the shares in the joint venture held by VAW aluminium AG.

As a result of IMCO’s action, VAW-IMCO on June 10 adopted a shareholders resolution to redeem VAW aluminum's interest in the joint venture.

The redemption price, which would be paid out in five equal annual installments, is to be determined by an evaluation conducted under a standard issued by the Institute of German Certified Public Accountants.

VAW-IMCO, which was formed in 1996, operates two aluminum recycling and foundry alloy facilities in Grevenbroich and Toging, Germany. It supplies specialty alloys to the European auto industry and also serves other major aluminum markets.

On March 15, 2002 Norsk-Hydro ASA, a Norwegian oil and energy, aluminum and fertilizer company, announced completion of the purchase of VAW aluminium AG from its parent company. As a result, under the joint venture's governing instruments, IMCO Recycling as the remaining shareholder had the right to elect to cause the joint venture to redeem the shares held by the shareholder whose control had changed.

Last year VAW-IMCO's revenues totaled $225.4 million and its net income was $6.0 million.