SEATTLE (Scrap Monster): Germany-based Scholz Recycling Group and China-based aluminum producer China Hongqiao have signed a joint venture agreement to set up an industrial recycling park project at Binzhou in the Shandong Province of China. The memorandum of understanding to partner on the project was signed between the two companies earlier in June this year.

The project will focus on securing and preparing over 200,000 metric tons of aluminum scrap, as required by Hongqiao for its operations. Additionally, it will collect and process up to 50,000 end-of-life vehicles (ELVs) every year. The plant hosts two-shredder processing line-one focused on aluminum scrap and the other on ELVs. The separated materials from the processing line will be fed into remelting plant, which will convert scrap into high-quality billets, which in turn will be used to produce new aluminum.

The project is in line with the goal of reducing emissions, by promoting sustainable and environment-friendly production techniques.

Rafael Suchan, CEO of Scholz Recycling Group noted that the company is pleased to expand into the Chinese market with its partnership with a key player like Hongqiao. In the next phase, the company plans to set up and expand a local trading team in China.