Ouyeel Alchemy (Jinjiang) Renewable Resources signed an agreement with China Baowu Iron and Steel Group, Jingjiang Teles Metal Materials and Jingjiang Science and Education Industrial Park to jointly build a metal recycling project in Gangcheng, cited Chinese media.
The project entails an investment of CNY195mn ($27.92mn) and is mainly engaged in the recycling of iron and steel scrap.
The project aims to create an upgraded version of the metal renewable resources industry featuring ship dismantling, expanding the influence of the “China Baowu” as a brand and adopt Ouyeel’s management system.
The project is likely to rest on the benefits from concentration of large-scale shipbuilding enterprises in Jingjiang area and port resources which are in compliance with smart factory standards. The new venture can annually process and distribute 1.5mn mt of scrap steel, supply 3mn mt of qualified scrap steel along with an output value of over CNY8bn.
After the completion of first phase. the annual sales are likely to reach 1.5mn mt and the sales volume would be CNY3.75bn.
($1 = CNY 6.94)