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IMCO Recycling Plans Major Acquisition of Three Western Processing Facilities.

IRVING, Texas--(BUSINESS WIRE)--Nov. 27, 1996--IMCO Recycling Inc. (NYSE:IMR) today announced that it has signed a definitive agreement to acquire three western U.S. aluminum recycling plants and other assets.

The company said it will purchase IMSAMET, a wholly owned subsidiary of EnviroSource, Inc. (NASDAQ:ENSO), for a total price of $58 million. The acquisition is expected to be completed in January 1997 and will be financed through loans that are now being arranged. IMSAMET owns aluminum recycling plants in Post Falls, Idaho and Wendover, Utah and has a 70 percent interest in a Goodyear, Arizona recycling facility. It also operates and has a 50 percent interest in the Solar Aluminum Technology Services (SALTS) joint venture. SALTS operates a facility adjacent to the Utah recycling plant which reclaims materials from salt cake, a by-product of the recycling process.

Frank H. Romanelli, IMCO's president and chief executive officer, said the acquisition "is the most important action we've taken to fulfill the vision of our strategic plan for growth, which is for IMCO to become the world leader in nonferrous metal recovery. The IMSAMET plants are well equipped and have an annual capacity of about 400 million pounds, which will allow us to serve the western aluminum industry. In addition, the SALTS joint venture has a patented process for treatment of salt cake that will help us achieve a "closed-loop" production system in which all materials used are reclaimed or consumed. This is one of our company's major environmental goals.

"IMCO's acquisition of IMSAMET is the latest in a series of steps we've taken to increase capacity and serve more end-use and geographic markets," he said. "We are building a joint venture facility in Coldwater, Michigan that will supply producers of auto components, and IMCO will soon begin construction of a recycling plant in Swansea, Wales that will provide molten metal to a rolling mill owned by Alcoa Manufacturing (Great Britain) Limited. In addition, our German joint venture, which supplies the European auto industry, also is expanding its capacity. When all these acquisitions and expansions are completed in 1997, IMCO's effective annual world capacity will rise to 2.2 billion pounds, 37 percent above the 1996 level."

IMSAMET's Idaho facility, with an annual capacity of 260 million pounds, recycles used beverage cans (UBCs), scrap and dross (skim from the melting process). It has a contract to recycle metal owned by Kaiser Aluminum Corporation and deliver it in molten form to that company's Trentwood, Washington rolling mill.

The Utah plant has an annual capacity of 70 million pounds, processes aluminum concentrate recovered by the SALTS joint venture, and produces ingot.

The Arizona facility also has an annual capacity of 70 million pounds. It processes dross as well as limited amounts of aluminum scrap and produces ingot.

Over 90 percent of IMSAMET's operations involve the recycling of metal owned by customers in return for a tolling fee. The remaining portion of its business involves the processing of purchased dross and the sale of recovered aluminum.

The SALTS joint venture, which is 50 percent-owned by Reilly Industries, Inc., recycles dross and salt cake into aluminum concentrate, aluminum oxide and salt brine. This clear bring is delivered to Reilly's solar recovery system where the chemical content is recycled for multiple uses, including reuse as a flux.

IMCO Recycling Inc. is the world's largest aluminum recycler and also processes zinc and magnesium. The company has 10 U.S. production facilities and owns 50 percent of a joint venture that operates two recycling and foundry alloy plants in Germany. IMCO Recycling's headquarters office is in Irving, Texas.

CONTACT: Imco Recycing Inc.

Paul V. Dufour, 972/869-6575.
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Publication:Business Wire
Date:Nov 27, 1996
Previous Article:EnviroSource signs agreement to sell IMSAMET subsidiary.
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