8-K

                    U.S. SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 20549



                                   FORM 8-K

                                CURRENT REPORT


    Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

      Date of Report (Date of earliest event reported):  August 25, 2000



                       KAISER GROUP INTERNATIONAL, INC.
            (Exact name of registrant as specified in its charter)


           Delaware             File No. 1-12248           54-1437073
        (State or other         (Commission File         (IRS Employer
        jurisdiction of              Number)           Identification No.)
         incorporation)



                               9300 Lee Highway
                         Fairfax, Virginia  22031-1207
         (Address of principal executive offices, including zip code)


                                 703-934-3600
             (Registrant's telephone number, including area code)


Item 5.  Other events
         ------------


  In a press release dated August 25, 2000, Kaiser Group International, Inc.
announced that it has completed the sale of its metals, mining and industry
business unit to The Hatch Group of Canada.  A copy of this one-page press
release is attached to this Report on Form 8-K as Exhibit 99(a).


Item 7.  Financial Statements and Exhibits
         ---------------------------------

Exhibit 99(a) - Press Release



                                   SIGNATURES

  Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report on Form 8-K to be signed on its behalf by
the undersigned hereunto duly authorized.



                                         KAISER GROUP INTERNATIONAL, INC.
                                                   (Registrant)



                                         /s/ Timothy P. O'Connor
                                         --------------------------------------
                                         Timothy P. O'Connor
                                         Executive Vice President,
                                         Chief Financial Officer
                                         and Chief Administrative Officer



Date:  August 28, 2000

EX-99

                                                                   Exhibit 99(a)


FOR IMMEDIATE RELEASE                            Press Contact: Mary Rekenthaler
- ---------------------                                               703/934-3086
                                                  Investor Contact: Nick Burakow
                                                                    703/934-3665

KAISER GROUP INTERNATIONAL CLOSES ON SALE OF METALS, MINING AND INDUSTRY
BUSINESS TO THE HATCH GROUP OF CANADA

FAIRFAX, VA, August 25, 2000 Kaiser Group International, Inc. (OTCBB: KSRG)
today announced that it has completed the sale of its metals, mining and
industry business unit to The Hatch Group of Canada, a leading provider of
engineering services to the metals and mining sectors. Kaiser's metals, mining
and industry business unit includes operations related to iron and steel,
alumina and aluminum and mining and industry.


This transaction results from a study of strategic alternatives for Kaiser's
engineering operations undertaken earlier this year in connection with the
ongoing restructuring of the Company's debt. Kaiser reached a definitive
agreement with The Hatch Group on July 6, 2000. The asset sale was approved by
the Delaware Bankruptcy Court on August 17, 2000.

About Kaiser Group International
- --------------------------------
Headquartered in Fairfax, Virginia, Kaiser Group International is one of the
United States' leading providers of engineering, project management,
construction management, and program management services. Its more than 3,000
employees, located in 30 offices around the world, serve the market areas of
transit and transportation; alumina/aluminum and mining/minerals; facilities and
water/wastewater; iron and steel; and microelectronics and clean technology.
Kaiser Group International, Inc., the parent company of Kaiser Engineers,
reported gross revenue of more than $870 million for the 12 months ended
December 31, 1999.  All references to Kaiser indicate Kaiser Group
International, Inc. and any of its subsidiaries.

About The Hatch Group
- ---------------------
Headquartered in Mississauga, Ontario, Hatch is a global supplier of technical
and strategic services, including consulting, process development, engineering,
information technologies, project management and construction to the mining,
metallurgical, infrastructure and energy industries worldwide.  With more than
3,000 employees in 40 offices worldwide, the employee-owned Hatch Group has
annual fees of more than $300 million.

Forward-Looking Statements and Certain Factors Affecting Kaiser and Its
- -----------------------------------------------------------------------
Businesses
- ----------
This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, which are identified by the
use of forward-looking terminology such as "may," "will," "could," "should,"
"expect," "believe," "anticipate," "aim," "intend," "plan," "estimate," or
"continue" or the negative thereof or other variations thereof.  Such forward-
looking statements are necessarily based on various assumptions and estimates
and are inherently subject to various risks and uncertainties, including risks
and uncertainties relating to the possible invalidity of the underlying
assumptions and estimates, that may cause actual results to differ materially
from those stated or implied by these forward-looking statements.  These
forward-looking statements also are subject to company-specific risks and
uncertainties, such as: the company's access to commercial lines of credit and
commercially satisfactory contract performance guarantee mechanisms, including
performance bonds; the performance of Kaiser-Hill Company, LLC under its new
contract with the U.S. Department of Energy concerning provision of services at
the DOE's Rocky Flats (Colorado) site; and the company's ability to:  maintain
existing contracts (including contracts with the federal government) at their
existing or at improved levels, accurately estimate and recover costs incurred
on fixed-price contracts, sign new contracts in established or new markets
(including international markets), conclude and implement successfully certain
acquisitions and joint-venture relationships, retain and attract key personnel,
manage significant contingent liabilities arising out of prior operations and
contacts, manage cash flow and liquidity needs, and avoid significant
environmental fines, penalties and liabilities.