Scholz invests into new recycling facility in Taizhou
On November 5, 2021. At the digital Zhejiang International Economy Summit, part of the 4th China International Import Expo, Scholz Recycling announced its investment into the construction of a new recycling facility in Taizhou, marking its second large-scale project in China. Around 50,000 end-of-life vehicles (ELV) and 10,000 tons of electric vehicle (EV) batteries will be processed, saving around 120,000 tons of carbon emission equivalents per year.
Scholz and its sister company Chiho Tiande jointly invest 243 million RMB, approximately 32 million Euro, mainly financed through internal resources, to build a 100 acres new recycling yard in the Chinese city of Taizhou, Zhejiang Province. The joint project under the listed parent company Chiho Environmental Group is going to recycle scrap, ELV and EV batteries, and to refurbish EV batteries and prepare them for a second life. This marks the second large-scale project of Scholz in China. Both companies, Scholz and Chiho Tiande, will thereby further contribute to make industrial supply chains more circular and contribute to China’s green circular economy by saving around 120,000 ton of carbon emission equivalents per year. In addition, the project will create approx. 280 local jobs.
Automobile ownership has been growing steadily in China over the recent years and more vehicles need to be recycled properly to enhance circular economy models. The current percentage of cars that are recycled, remains far lower than in many developed countries. The demand for ELV recycling and for recycling EV batteries is therefore on the rise. Especially as forecasts say that in 2025 roughly 20 percent of new cars will be electric vehicles.
This presents a huge immediate and long-term opportunity for the Group with its extensive industrial recycling know-how and latest developments in EV battery recycling. Furthermore, policies are in favour of the Group’s strategy: the Chinese government announced to promote a low carbon economy and to achieve carbon neutrality by 2060, including the Measures for the Management of End-of-Life Vehicle Recycling in 2020. It also emphasized the development of circular economy and dual carbon goals in its 14th Five-Year-Plan.
Through continuous innovation, Scholz can turn up to 97% of end-of-life vehicles and 99% from fine grained residuals into new high-quality products for the industry, exceeding even strictest European Union targets. Scholz has strengthened the research and development unit in China to keep a leading position in a rapidly developing market. Until today, 20 patents have been submitted to the China National Intellectual Property Administration. Seven are related to the unique recycling process for EV batteries, seven for the general recycling of end-of-life-vehicles and six other patents are related to aluminium smelting and recycling.
On the other hand, Chiho Tiande has been in the Chinese mixed metal recycling industry for more than two decades and has a strong customer base, an extensive supplier network and latest local market knowledge. The ELV and EV Batteries Project will combine the two competitive advantages of the Scholz and Chiho-Tiande to transform the existing production base in Taizhou, China, into a leading recycling center for ELVs and EV batteries.