CMA Corp. has signed a two year agreement with Transpacific Industries Group Ltd. to recycle about 45,000 metric tons of ferrous metals and 7,000 metric tons of non-ferrous metals per year.
Under the agreement, TPI will provide the CMA with reserves of ferrous and non-ferrous metals recovered from its waste and environmental management operations.
The company said this agreement represented a significant boost for its CMA Recycling business, which recycled and sold more than 420,000 metric tons of ferrous and non-ferrous metal the second half of last year.
TPI became a strategic investor in CMA late last year after purchasing 49.8 million shares in a placement, which gave TPI a 13.1 percent stake in the expanded capital of CMA," the company said.
Managing director Doug Rowe said CMA was already benefiting from the strategic relationship with TPI. "We were pleased to have TPI as a major investor of the company and now three months down the track we are happy to also count them as one of our key customers," said Rowe.
"This is a major contract for the CMA Recycling division and will significantly boost our volumes and profits."
"On an operational level, CMA has benefited from gaining access to TPI's infrastructure including bin manufacturing services and Western Star trucks which have been purchased from TPI's franchises around Australia," he said.
"We see a great level of co-operation between the groups and look forward to a long relationship that will provide added benefits to the shareholders of both companies," he said.
CMA said the TPI contract would officially commence on April 1.
CMA also announced that it has secured a contract with Capral Aluminium Ltd., valued at more than $50 million.
The two year agreement with CMA Recycling is for the collection and recycling of about 16,000 metric tons of nonferrous metal, 1,000 metric tons of ferrous metal and small amounts of mixed metals.
Capral is a supplier of aluminum extrusion and sheet products with an extensive network of warehousing operations, service centers and manufacturing plants across
The agreement with Capral is expected to commence next month.