|  

Scholz now fully owned by Chiho Tiande Group

Scholz' headquarters in Essingen, Germany
Source: Scholz
16.12.2016 − 

Chiho Tiande Group has completed the take-over of ailing German ferrous scrap recycler Scholz. The company is now a fully-owned subsidiary of the Chinese non-ferrous metals recycling firm. At an extraordinary general meeting on 15 December, 100 per cent of the Chinese group’s shareholders present approved the proposed acquisition. This was the final step among several closing conditions, Chiho Tiande Group (GTG) reported on the following day. CTG paid a symbolic price of one Euro for Scholz, but invested about €350m in the preceding months to help out the ailing recycling company by taking over debt and other transactions.

"The combination of CTG and Scholz provides significant profitable growth opportunities”, according to CTG, with the post-merger company expected to benefit from purchasing across different geographies as well as improved supply chain efficiency in the short term. In the medium term, the "combined group will be able to use scale effects once the commodities market picks up, where some upwards trends are already visible”. Long-term, "CTG/Scholz is in the best position to leverage on the effects of China’s strong focus on mitigating the impact of economic growth on the environment as well as to further consolidate the market for metal recycling”, the Chinese company commented.

"We are very pleased to welcome Scholz today as a new member of Chiho-Tiande Group. Together, we will now build a strong and leading player in the global metal recycling market, and we are looking forward to a profitable future of Scholz under the roof of CTG,” said Tu Jianhua, CTG’s executive director und chairman.

Scholz group co-CEO Henry Qin is confident that Scholz will be able to "reach its full potential" under the new ownership, "building on the dedication of a highly skilled and motivated team”. Mr Qin acknowledged that "change in ownership always calls for a feat of strength, but if we continue to listen and learn from each other, we will build a positive future for Scholz”.

 

EUWID Recycling and Waste Management is published fortnightly. The print edition is mailed every other Wednesday, while E-Paper subscribers have immediate access to the digital version of the most recent edition on the day of publication. Subscriptions for faster access to our market reports are also available.

Our customer service team would be happy to answer any questions you might have.

Tags of this news:

previous − Remondis expands in Belgium

Aurubis earnings down sharply in 2015/16  − next