Chiho Environmental Group Ltd., headquartered in Hong Kong, has announced that it established a joint venture with two other businesses Nov. 5. The new joint venture, Hidaka-Chiho Metal Recycling (Thailand) Co. Ltd., will combine Chiho Environmental Group with Hidaka Yookoo Enterprises Co. Ltd., a ferrous scrap metal recycler in Thailand, and Suzuki Shokai Co. Ltd., a leading resources recycling company in Japan and a long-term business partner of Chiho Environmental Group. The new joint venture will be engaged in the business of metal recycling with a primary focus on motor dismantling in Thailand, Chiho Environmental Group reports in a news release on the joint venture.
“In recent years, the great changes in waste and renewable resources in various countries have put [Chiho Environmental Group] in an advantageous position as the recycler of scrap motor resources in Europe, America and Asia, and the ability to influence the countries in the renewable resources industry,” says Yongming Qin, chairman of Chiho Environmental Group. “It is a great pleasure to jointly establish [a joint venture] with Hidaka Yookoo Enterprises and Suzuki Shokai. It is hoped that joint venture companies across the three countries will become the pioneer in the industry and contribute to the betterment of the world.”
Yasuo Atitruangsiri, president of Hidaka Yookoo Enterprises, says this is the first time in the company’s more than 90-year history that it has established a joint venture with parties from Thailand, Japan and Hong Kong.
“The [joint venture] will combine the strength of the three [joint venture] partners and integrate the experience and technology of the three companies into a common goal,” Atitruangsiri says. “With the efforts to achieve maximum results, the [Hidaka Yookoo Enterprises Co. Ltd.] factory, as a Thai company, will fully comply with national laws and regulations and aim to become an industry leader.”
“China’s ban on imports of mixed metal scrap has become a topic of the world,” says Tsukasa Komatani, president of Suzuki Shokai Co. Ltd. “Japan and Hokkaido have been greatly affected. Instead of a passive wait-and-see approach to this issue, we proactively establish [a joint venture] together with the representative companies of the other two countries to jointly solve the global environmental problem that has become a world issue and thus respond to the environmental changes of resources. I hope that for the future of Japan and Hokkaido, there is a better living environment, and this is a big step across the border.”
Chiho did not share details of the joint venture’s equity structure.
According to an article in Reuters on Chiho’s announcement, plans for this new recycling firm come following China’s tightening regulations on scrap metal imports, which accounted for 10 percent of the country’s total copper consumption in 2018. As a result, more Chinese-owned recycling plants have been opening overseas, especially in Southeast Asia, with goals to process the material into a form that can still enter China.