Scholz to enter New Market in China
The German-based Scholz Recycling Group is heading to expand its recycling business in China with the world’s largest aluminum producer Weiqiao. On 9th June 2020 both companies have outlined a project to build a recycling industrial park in Shandong Province.
On Tuesday Rafael Suchan, Chief Executive Officer at Scholz and its parent company Chiho Environmental Group, signed a memorandum of understanding together with Shandong Weiqiao Pioneering Group Co., Ltd. to develop and operate a recycling industrial park in the Chinese City of Binzhou.
“This signature hopefully marks the next step for Scholz and shows that our unique recycling know-how is crucial for securing supply chains sustainably – especially in those difficult times”, Mr Suchan reviews the project start.
The industrial recycling park shall source and secure primarily the need of more than 200,000 tonnes of aluminum scrap for Hongqiao, a Weiqiao subsidiary, and thereby contribute to a wider approach in reducing emissions and becoming more sustainable and environmental-friendly.
Hongqiao is one of the world’s largest aluminum producers. Scholz also leverages its recycling know-how with the new partner to enter the Chinese end-of-life vehicle (ELV) and spare part market. Within the first phase Scholz plans to collect and process up to 50,000 ELVs per annum. “This also gives us access to the huge Chinese end-of-life vehicle market,” says Rafael Suchan, describing the further growth opportunity for Scholz.
Together with the parent company Chiho Environmental from Hong Kong, the next steps must now be worked out in detail. The fact that the owner of Weiqiao was also present on Tuesday is seen by the Scholz boss as an extremely positive sign.
Please also note the voluntary announcement at the Hong Kong Stock Exchange: http://chihogroup.com/en/Public/Upload/o_1eaciumfpd85rul8s1uol1e0i8.pdf