May 17, 2008

China Direct launches aluminum recycling project in China

Interfax China reported that China Direct Inc, a US company with controlling stakes in a diverse portfolio of Chinese companies, will construct an aluminum recycling facility in China.

CDI will inject USD 352,000 into the facility, which will be run by a newly established venture, CDI Metal Recycling Co Ltd CDI Shanghai Management Co. Ltd, another wholly owned CDI subsidiary, will control an 83.3% interest in the new venture. The 1,000 tonnes per annum recycling capacity facility, which will use a mechanical crushing method that reduces losses associated with traditional heating methods, will primarily recycle aluminum wire to create aluminum powder.

Production at the facility is scheduled to begin in the second quarter this year, and the company intends to expand its capacity to 5,000 tonnes per annum by June 2009. The company did not reveal where the plant would be located in its statement, and officials were not available for comment when contacted by Interfax.

The company said that it believes recycling will become a strong growth driver worldwide as natural resources continue to deplete.