China Metal Recycling, GDWZ Sign Joint Venture Deal

China Metal Recycling Ltd. (CMR) has entered into a non-binding memorandum of understanding with Guangdong Materials Group (GDWZ) to establish a joint venture that will build and operate a scrap metal recycling facility in China.

CMR will control 58 percent of the joint venture; GDWZ will own 42 percent of the operation.

According to a CMR announcement, both companies will invest capital at a site in Southern China that will be able to process 5 million tons of scrap metal. CMR says that the new facility will have a registered capital of around $45 million. The facility is being designed to include a dismantling system that will process appliances, automobiles, ships, aircraft and other types of metal. CMR says that the goal of the project is to meet the Chinese government’s 12th Five Year Plan.

The two companies also say the facility will be able to handle medical wastes, plastic and construction and demolition material. The joint venture will own state-recognized licenses approved by China’s Ministry of Commerce for dismantling motor vehicles and vessels.

GDWZ is a state-owned enterprise engaged in the operation of various material resources. The company’s principal subsidiary, GDMRC, owns a network of processing sites throughout Southern China. The company is reportedly one of the largest processors scrapped motor vehicles and scrapped vessels in the Guangdong Province, and it is also engaged in the recycling of waste materials from manufacturing enterprises in the Guangdong Province of China, as well as the recycling and processing of retired military equipment.

CMR says that it is one of the largest scrap metal recycling companies in China. The company operates 10 scrap metal recycling yards in the country.