Advance SCT, Sheng Li Establish Joint Venture Company

Advance SCT Ltd. (ASCT) has entered into a joint venture agreement with nominees of Qing Yuan Sheng Li Copper Material Co Ltd. (Sheng Li) to set up a new joint venture company in Singapore, known as Asia Copper Pte Ltd.

Asia Copper will be involved in the recycling and trading of ferrous and non-ferrous scrap metal, copper cathode and other finished products. It will be jointly owned and managed by ASCT (51 percent) and Sheng Li nominees (49 percent).

ASCT said the joint venture will enable it 'to leverage on the technical expertise and financial resources of Sheng Li to strengthen the Group's metal scraps and products trading business'.

In a Memorandum of Understanding, signed last December, the companies said they will set up an international sourcing center in Singapore to develop a global network for the buying and distribution of metal scraps for the Chinese market, with an initial target of 150,000 metric tons per year.

They will also cooperating in the production of copper balls by moving a production line from ASCT's refinery in Singapore to Sheng Li's refinery in Guangdong.

The two companies also will jointly develop the copper ball markets in and outside of China, with an initial production target of 20,000 metric tons per year.

The MOU also included distributing Sheng Li's products such as copper rod and copper wire with the Singapore Copper brand and through the established international networks of ASCT, with an initial distribution target of 12,000 metric tons per year.