London, UK - June 1, 2007 - RecovCo Limited announces that, on 27th April 2007, it completed the acquisition of the assets and operations of Alcan's Affimet aluminum recycling plant in Compiègne, France.
The new company, RecovCo Affimet SAS, will trade as RecovCo Affimet. RecovCo Affimet is France's largest aluminium recycling company with an initial target output of over 54,000 tonnes per year. The primary casting and processing business will continue to operate as before. However, the secondary processing business has been rationalised to reflect changing market conditions and operational economics.
RecovCo Affimet has retained 62 Affimet personnel in the new business. RecovCo Affimet is also recruiting additional operational staff to allow for further expansion in the future. Five staff from RecovCo's UK operations will join the Affimet team to assist with the development of the business. Amongst these RecovCo UK staff will be Tom Evans, the CEO of RecovCo and Hudson Evans, the Operations Director of RecovCo.
"RecovCo has invested in the installation of one of its patented Rotary Tilting Furnaces (RTFs) into RecovCo Affimet. The proprietary 15 tonne RTF has a capacity of approximately 30,000 tonnes per year. This has already started to significantly improve operational efficiency - delivering higher metal recoveries, reducing operating costs and enhancing environmental performance in the secondary processing business. This investment is part of a wider investment programme that will ensure that we exceed the expectations of our customers in terms of quality and consistency of supply and service." said Claude Riss, former Executive Vice-President at Pechiney and new Chairman of RecovCo Affimet.
The management of RecovCo and Alcan have undertaken extensive joint planning to ensure continuity of operation and supply through the acquisition period. However, the unprofitable hot metal business has already been closed. "We will keep this business under review and may recommence this part of the business should it prove to be commercially viable in the future" said Tom Evans.
"Affimet is an excellent acquisition for RecovCo. It provides an outstanding platform for us to pursue our ambitious international expansion plans. Recovco intends to build a major international Aluminium recycling group through further acquisitions and joint ventures. The Affimet team is well motivated and highly trained and will, I'm sure, prove to be a great asset to RecovCo as we grow." added Tom Evans.
The acquisition coincided with a further equity funding round into RecovCo Limited of £4.2 million (€6.3 million). This was led by existing investor WHEB Ventures and included Impax Group, StoneFund and Management.
Impax Group plc www.impax.co.uk, a company quoted on AIM provides specialist fund management within the energy, water and waste sectors. Total funds under management rose to over £687m in May 2007. SoneFund2 N.V. www.stonefund.com is an international cleantech fund focusing on early stage companies in cleantech and new materials. Funds under management of €15m are expected to grow to €40m by the end of 2008.
Kim Heyworth, CEO of WHEB Venture's Fund Management team, said "There is a growing global demand for recycled aluminium and this acquisition, coupled with its strong technology, puts RecovCo in an excellent position to become a leader in the recycled aluminium market."
RecovCo Limited
RecovCo Ltd. is a UK-based specialist designer and operator of aluminium reprocessing facilities. Its unique and patented Rotary Tilting Furnace (RTF) technology has been successfully installed in two sites in the UK where it has demonstrated unprecedented operational performance and metal recoveries. Furthermore, the RTF technology offers best in class environmental performance.
Founded in 2004, it is RecovCo's vision to become the best reprocessor of aluminium dross and scrap in the world - in terms of operational excellence, environmental performance, customer service and profitability.
For more information, please visit www.recovco.com