Itochu Corp. to Launch Metals Recycling in Dalian

Itochu Corporation announced on Friday the group established integrated recycling operation, named Dalian New Green Recycle & Resources Corporation to deal ferrous and nonferrous scrap, waste appliances and plastics at Dalian Changxing Island Harbor Industrial Zone in China. The venture starts the construction in spring of 2011 to start operation of processing of metal scrap in 2012. The venture completes all the plants including treatment of waste appliances and plastic by 2015. The targeted annual sales are around 20 billion yen in 2014.

The venture is first metal recycling business in China for Itochu Corporation. The venture introduces shredder machine with 6,000 tonnes of pressure capacity at the plant on 100,000 square meters of land. The joint venture partner of Hokkaido based scrap dealer, Suzuki Shokai is in charge of the scrap processing.

The venture collects scrap in local area and provides processed ferrous scrap to Chinese steel makers. The venture eyes potential ferrous scrap import from USA to expand the supply ability of high grade scrap.

Itochu Corporation established the joint venture with Suzuki Shokai and other partners in late October. Itochu Corporation group including Itochu (China) Holdings and Itochu Metals Corporation controls 75% of the venture with 2 billion yen of capital and 400 of employees with 20% share by Suzuki Shokai, 2.5% share by San Syu Busan and 2.5% share by Dalian Sanzhong Technology Developmnet.

The venture is only official approved recycled materials processor at the industrial zone. The industrial zone is located northwest of Dalian and is developed as most important base for industrialization of Liaoning since late 2005. Chinese central government set the zone as one of the major development areas for national strategic project. The zone is developed for various industries including shipbuilding and port logistics.