The steel scrap recycling firm Scholz is getting an €80m capital injection from its new owner, Chiho Environmental Group Ltd. (CEG, formerly Chiho-Tiande Group). The cash capital increase would be used to repay a €59m senior bridge loan due at the end of June 2017, announced Scholz Holding GmbH. The remaining €21m would be used to meet the working capital requirements of Scholz Recycling GmbH.
Scholz CEO Henry Qin said, "Going forward the Group will be able to fully deploy its operational capabilities and maximize its trade financing in order to regain volume and grow the business”. The capital increase was made through Chiho Renewables International Holding Ltd., a direct and fully owned subsidiary of CEG. After a year of successful operative and financial restructuring, "Scholz is getting back on track,” Mr Qin said.