China Direct, Inc. has launched a new venture to recycle aluminum powder. China Direct owns controlling stakes in a number of entities to help Chinese businesses access U.S. capital markets.
The new venture, named CDI Metal Recycling Co., Ltd., will be 83.3 percent owned by CDI Shanghai Management Co., Ltd., a wholly owned subsidiary of China Direct and will expand China Direct's clean technology division which currently includes CDI Wanda New Energy Co., Ltd. and Yantai CDI Wanda Renewable Resources Co., Ltd. China Direct will contribute $352,000 in the form of working capital to construct recycling facilities with an annual recycling capacity of 1,000 metric tons of aluminum powder.
China Direct anticipates the initial 1,000 metric tons of annual capacity will be operational late in the second quarter of 2008. China Direct plans to add an additional 4,000 metric tons of annual processing capacity by June 2009.
CDI Recycling will focus on recycling aluminum wires to create aluminum powder, which consists of 99.65 percent pure aluminum. CDI Recycling's technology uses a combination of mechanical crushing and a ball milling procedure to increase recycling rates and degree of fineness.
Additionally, CDI Recycling will use a specific ball vibrator design to mill the powder completely and evenly as opposed to traditional drum designs which management believes are less efficient.
James Wang, chairman and CEO of China Direct, stated "By adding CDI Recycling, we continue to expand our Clean Technology Division, into the metal recycling business. Management is convinced that innovative recycling operations will become strong growth drivers worldwide as natural resources continue to be depleted. We intend to opportunistically expand this division throughout 2008 and believe that our clean technology segment will be a major driver of growth at China Direct in 2009 and beyond."