The German ferrous scrap recycler Scholz experienced revenue growth in the first six months of this year despite falling volumes. Nonetheless, the group faced a downturn in its profits because of higher logistics costs and inflation, according to preliminary figures released by Chiho Environmental Group for the first half of 2022.
Chiho’s European activities, which consisting only of the Scholz group, sold 1.97 million tonnes of recycled products, almost 7 per cent less than in the same period last year. Strong demand for metals at the start of the year allowed the company to benefit from high prices for ferrous and non-ferrous scrap. Revenues from Chiho’s European activities climbed by 13 per cent to almost HKD11.0bn (roughly €1.4bn at current exchange rates).
At the same time, global supply chains had yet to fully recover from the Covid-19 pandemic, so logistics costs remained high, Chiho reported.
Read the complete report with further details on Scholz's current projects in Hungary and the Czech Republic, the strained financial situation at Chiho and the search for new investors for the parent company Loncin here....