IMCO Recycling Will Add Capacity to Provide Increased Aluminum Alloys Shipments to General Motors

IRVING, Texas, March 24 -- IMCO Recycling Inc. today announced that it will expand its Saginaw, Michigan facility by 50 percent in order to significantly increase the amount of aluminum alloys that it supplies to General Motors Corporation .

The increase in volume was agreed to in a recently signed amendment to a 13-year contract that the two companies announced in 1999.

The greater amount of alloys to be supplied by IMCO will be used by GM's Saginaw Metal Casting Operations to manufacture the new GEN IV all-aluminum V8 engine. GM will utilize the new engine in its full-size sports utility vehicles.

Don V. Ingram, IMCO's chairman and chief executive officer, said the contract amendment announced today "is an important step forward in our global strategy to increase the company's participation in the transportation sector, the largest and fastest-growing aluminum market. With this new supply requirement, IMCO will add additional melting, processing and environmental equipment at our Saginaw plant in order to provide the increased alloys shipments. We expect to complete this project before the end of 2004."

Gary Merritt, manager of IMCO's Saginaw facility, said, "The awarding of this additional business by GM is a compliment to our employees who have worked very hard to provide excellent product quality and outstanding service to our customer. We are pleased to play a larger role in GM's transition to greater use of aluminum in their vehicles."

In 2003, the Saginaw plant was recognized as a "Clean Corporate Citizen" by the State of Michigan's Department of Environmental Quality. In order to earn this designation, industrial plants must have a consistent record of compliance with applicable environmental requirements. They must also adopt a facility-specific environmental management system and active pollution prevention initiatives. Through programs conducted by the International Organization for Standardization, the plant also has earned ISO/QS and TS certifications that its production, management and environmental systems meet strict guidelines that assure delivery of consistent and reliable products.

GM and other vehicle manufacturers are increasing their use of aluminum in order to minimize the weight of their vehicles while maintaining their size, thus satisfying customer preferences while reducing fuel usage and greenhouse gas emissions. In addition, aluminum-intensive vehicles provide superior acceleration, braking, handling and terminal value. In North America over the past 12 years the use of aluminum has doubled in cars and tripled in SUVs, light trucks and minivans.

IMCO provides GM and other customers with just-in-time delivery of aluminum alloys in molten form by customized trucks. This delivery method lowers customers' energy and capital expenses as well as melt loss, thus increasing their productivity.

IMCO Recycling Inc. is one of the world's largest recyclers of aluminum and zinc. The company has 21 U.S. production plants and five international facilities located in Brazil, Germany, Mexico and Wales. IMCO Recycling's headquarters office is in Irving, Texas.