IMCO Seeking More European Aluminum Plants

IMCO Recycling Inc is considering more purchases of secondary aluminum production plants in south and east Europe, the head of its German unit said.

Last week IMCO bought 100 percent control of German aluminum producer VAW-IMCO Guss by purchasing the 50 percent shareholding held by Norway's Hydro Aluminium, a unit of Norsk Hydro.

"We want to grow further and this includes looking at new markets in south Europe and east Europe," said VAW-IMCO Guss CEO Roland Scharf-Bergmann.

This could involve purchases of secondary aluminum production plants, he said. But no concrete talks are currently underway and specific countries are not being named.

"We must be certain that we have sufficient supplies of raw materials and sufficient customers in the local markets," he said. "We are currently involved in market studies."

No decision has been made about building another plant for a new a 30,000 to 35,000 metric ton per year secondary aluminum operation in Latchford near Manchester in north England, Scharf-Bergmann added.

Planning permission for the plant has been received from local government authorities but talks continue with the major potential customer, Canadian metals group Alcan, said Scharf-Bergmann, who also heads IMCO's UK unit.

"Talks are not yet complete," he said. "We are still talking about whether the right package can be created."

A major question is whether Alcan would require deliveries of molten metal, he added.

"We expect a decision soon, I believe in the first half of this year."

"We could then start relatively quickly because the main planning permission is there. The plant could be built within 12 months."

VAW-IMCO Guss in Germany produces about 230,000 metric tons of largely secondary aluminum and is being expanded in a $6.4 million program, he added.

New production furnaces will be installed this year at its two plants in Grevenbroich in central Germany and Toging in the south, partly replacing older systems.

This will raise production, mostly of secondary aluminum, by 15,000 to 20,000 metric tons annually, he said.

The company also produces about 25,000 to 30,000 metric tons annually of primary aluminum alloys from high quality scrap that will be increased by about 10 percent. Reuters