Oct 22 2004
IMCO Recycling Inc. today announced that its German subsidiary, VAW-IMCO Guss und Recycling GmbH, has signed a long-term agreement to supply molten aluminium alloys to DaimlerChrysler AG.
The metal to be supplied under the agreement will serve as a base load for a new recycling facility that the company will build in Deizisau, Germany, near DaimlerChrysler AG's foundry in Stuttgart. The plant is expected to begin operations in early 2006 and will have about 40 employees.
VAW-IMCO currently supplies molten aluminium alloys to this customer from its Toeging plant in Bavaria. The metal is delivered via a heating station installed close to the DaimlerChrysler foundry. The company said it expects the volume of its Toeging facility that is now provided to DaimlerChrysler AG to be replaced by other business.
Richard L. Kerr, president and chief executive officer of IMCO, said the company specializes in the just-in-time delivery of molten metal that will be provided to DaimlerChrysler AG. "This delivery method, in which we use utilize customized trucks and refractory-lined crucibles, lowers customers' energy, labour, maintenance and capital expenses as well as melt loss, thus increasing their productivity.
"We are pleased to reach this agreement because it further broadens our participation in the transportation sector, the largest and fastest-growing aluminium market."
Mr. Kerr said the aluminium content of vehicles manufactured throughout the world "has risen significantly over the past decade. This increase has occurred because the use of aluminium instead of traditional materials lowers fuel consumption and emission, improves vehicle safety and performance, extends service, in part through less corrosion, and provides much higher end-of-life value."
IMCO Recycling also announced that VAW-IMCO will start operations in December at a new facility which will produce magnesium from scrap. About 90 percent of the output of the plant, which is being built next to the Toeging facility, will be provided to the European auto industry.
The magnesium plant will have a rated annual capacity of 15,000 tonnes and is expected to begin operating at a rate of 5,000 tonnes per year in the first quarter of 2005. It will recycle magnesium scrap and produce cast magnesium ingots.
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