Zemex Corp.'s Alumitech unit received approval from the U.S. Bankruptcy Court for the Southern District of New York to acquire the assets of Resource Recovery Industries Inc.
Zemex said it paid $2.5 million for the assets and assumed about $700,000 of obligations related to equipment leases to acquire Resource Recovery's aluminum recycling facility in Friendly, W.V.
Resource Recovery filed for protection under Chapter 11 of the U.S. Bankruptcy Code on January 7, 2002. Following the bankruptcy filing Alumitech provided debtor in possession financing.
Zemex' Units produce industrial minerals, specialty products and metal powders.
Richard Lister, president of Zemex, indicated that this acquisition of the RRI facility will allow for a consolidation of Alumitech's recycling plants and should have a significant positive effect on the operations of the group.
He added that the acquisition is in line with the corporate strategy of acquiring businesses that serve the same markets that the company currently serves with the objective of increasing the size and presence of each division, our aluminum recycling group and our industrial minerals group.
Alumitech operates two dross and salt cake reprocessing facilities, one in Cleveland, and one in Wabash, IN. The company also recently completed the construction of its first closed loop, commercial plant to recycle dross materials into saleable feedstock products on its Cleveland site and is currently in the start-up phase of that process.