The ALBA International Recycling GmbH business unit of the Berlin-based ALBA Group has announced buying a 51 percent stake in Shanghai Baosteel Auto Recycling Co. Ltd., which it describes as one of the largest auto recycling companies in Shanghai. The remaining stake in the auto recycling facility will be held by Shanghai Baosteel Iron & Steel Resources Co. Inc., part of the Baowu Group, the second largest steel producer in the world with an annual steel output of more than 58 million metric tons.
Shanghai Baosteel Auto Recycling operates a 60,000-square-meter (14.8-acre) site in Shanghai.
In a news release announcing the investment, ALBA Group indicates there are more than 3.2 million vehicles in Greater Shanghai, while licenses for recyclers are severely limited. The joint venture will put together ALBA International Recycling’s years of expertise in the recycling industry with Baosteel Iron & Steel Resources’ significant network of contacts in the China market, according to ALBA.
“We are very pleased that we can increasingly use our automotive recycling know-how in Asia as well,” says Axel Schweitzer, CEO of the ALBA Group. “Our goal is to work with Baowu (Baosteel’s parent company) to establish a model for all of China and actively support the country in building a modern and sustainable circular economy. At the same time, we are further expanding our strong role in the Chinese recycling industry.”
The China Baowu Steel Group Corp. was formed in December 2016 from the merger of Baosteel Group Corp. and the Wuhan Iron & Steel (Group) Corp.