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Scholz plans to recycle ELVs and aluminium scrap in China

10.06.2020 − 

The German ferrous scrap recycler Scholz intends to expand its activities to the Chinese market. Together with one of the world's largest aluminium producers, China Hongqiao, Scholz intends to develop and operate a "recycling industrial park" in the megacity of Binzhou in the eastern Chinese province of Shandong. Earlier this week, Scholz signed a memorandum of understanding with the Shandong Weiqiao Pioneering Group, Hongqiao's parent company.

The industrial park is intended first and foremost to meet Hongqiao's input demand of more than 200,000 tonnes of aluminium scrap per year, Scholz reported. The metals recycler also intends to use its know-how with the new partner to enter the Chinese end-of-life vehicle (ELV) and used spare parts markets.

In the first phase of the collaboration, Scholz plans to collect and process up to 50,000 end-of-life vehicles per year. Scholz CEO Rafael Suchan hopes that these efforts will give Scholz "access to the huge Chinese ELV market" and with that opportunities for further growth.

The details of further stages in the planned partnership must now be worked out together with its own parent company Chiho Environmental, according to Scholz. In the coming months, the companies involved will work towards concluding a variety of agreements covering possible cooperation as well as towards receiving approval from governmental authorities, Chiho explained. However, the Scholz parent company emphasized that with the exception of a few clauses, the letter of intent was not legally binding, nor need it necessarily lead to the conclusion of a binding agreement.

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