Apr 4 2002
The sale of the assets of bankrupt Resource Recovery Industries Inc (RRI) to Zemex Corp has been approved by the United States Bankruptcy court. This follows RRI filing for chapter 11 bankruptcy staus on January 7, 2002.
The assets will be sold to Zemex’s wholly owned subsidiary Alumitech, which specialises in processing of aluminium dross, an similar business to RRI. The acquisition is costing Zemex US$2.5 million.
The acquisition of the RRI follows the corporate strategy of purchasing businesses that serve the same markets as the company already serves, with the aim of increasing size and market share. Incorporating RRI into the Alumitech group will involve some amalgamation and consolidation, but once complete, Alumitech will be in a stronger position to serve their clients.