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IMCO RECYCLING COMPLETES ACQUISITION OF INTERAMERICAN ZINC

     IMCO RECYCLING COMPLETES ACQUISITION OF INTERAMERICAN ZINC
    IRVING, Texas, Jan. 16 /PRNewswire/ -- IMCO Recycling Inc. (NYSE: IMR) announced that it completed the acquisition of Interamerican Zinc, Inc. (IZI), a privately owned company located in Adrian, Mich., for about $5.0 million in cash.
    IZI is the nation's largest recycler of hot-dip zinc dross (residue that forms on molten metal) for continuous steel galvanizing mills.  The company has an annual production capacity of approximately 40 million pounds.
    IMCO announced last April that it had signed a letter of intent to acquire IZI.
    Ralph L. Cheek, IMCO's chairman and chief executive officer, said the acquisition of IZI "provides us with immediate growth and diversification.  We expect its operations to add some $3.0 million to our 1992 revenues and for them to earn a return consistent with our current activities.  Further, IZI is a financially sound company with no long-term debt and net working capital in excess of $2.0 million that consists principally of cash.
    "While aluminum recycling will continue as by far our largest business, IZI will add an important dimension because it is a leading supplier to a different--but also growing--industry," Cheek said.  "The rising use of lighter gauge steel in automobiles and other durable goods will require greater production of galvanized steel and significant increases in capacity of this type are under construction or in the planning stage.
    "Another factor which led us to acquire IZI is its ownership of international patent rights to its recycling process. In addition, IZI provides its service on a tolling -- or fee -- basis as IMCO does in aluminum and this arrangement minimizes working capital needs.  Over 90 percent of IZI's operations involve tolling."
    Cheek said that IZI is the only zinc processor to provide galvanizers with a "closed loop" recycling service, processing dross and returning alloyed zinc to its original owner for reuse.
    IMCO Recycling is the largest independent recycler of aluminum beverage cans and their by-products in the United States and is the nation's only publicly owned firm whose activities are concentrated in the aluminum can recycling market.
    -0-         1/26/92
    /CONTACT:  Paul V. Dufour of IMCO Recycling, 214-869-6575/
    (IMR) CO:  IMCO Recycling Inc.; Interamerican Zinc Inc. ST:  Texas, Michigan IN: SU:  TNM SH -- NY017 -- 0381 01/16/92 09:45 EST
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Date:Jan 16, 1992
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