On Saturday September 26, Hongqiao and world-leading recycler Scholz Group signed an agreement to establish a recycling-focused joint venture and building a recycling-focused project in Binzhou, Shandong, as the company eyes progress in sustainable development.

The project will focus on end-of-life vehicle (“ELV”) dismantling, scrap metals recycling, and research and development of recycling technologies and processes.

It is designed to process more than 200,000 tons of aluminum scrap and 50,000 end-of-life vehicles per year.

Aware of the environmental challenges Hongqiao is facing as a manufacturing giant, the company has “is always deliberating how to facilitate sustainable economic development with high technology taking the lead and innovation at the core,” said Zhang Bo, chairman and CEO of China Hongqiao.

He joined Rafael Suchan, CEO of Scholz Recycling GmbH and She Chunming, secretary of Binzhou municipal committee of the CPC, and other company and government representatives for the signing ceremony.

“We are determined to turn waste into treasure,” said Zhang.

“Rooted in the manufacturing industry, we are to recycle industrial waste, to take advantage of our strengths and values in the circular economy, and to contribute more to our society’s green and sustainable development,” he said.

The recycling project’s establishment is among Hongqiao’s latest moves in pursuing a circular and green aluminum route. Earlier this month, Hongqiao’s new 2.03-million-tonnes per year integrated aluminum smelting and hydropower project locates in Yunnan’s Wenshan prefecture went into production.

Hongqiao and Scholz are collaborating “not only because we have matching strengths and technologies, but we coincide in our ideologies to pursue green and sustainable development,” said Zhang.

The 150-year-old Germany-based company is dedicated to recycling steel and metal scrap. It is a world leader in end-of-life-vehicle recycling and has developed pioneering technology in secondary aluminum recycling.

“This project is a win-win — it is a win-win not only for the companies, but also win-win for the country,” said Suchan, noting Scholz’s ambition of facilitating a well-functioning recycling market in China and the long-term friendship between China and Germany.

Hongqiao “stands for entrepreneurial spirit, and now is focusing on innovation, sustainability and environmental Protection,” he added.

Suchan highlighted how the recycling aluminum could contribute to China’s goal of reaching carbon neutrality before 2060, which was announced by Chinese President Xi Jinping on Sept 22.

“Aluminum as lightweight material strongly contributes to CO2 reduction. But, recycled Aluminum is making one more major difference — when recycling Aluminum, we save 95% of energy and hence, a lot of CO2,” said Suchan.

The cooperation between Hongqiao and Scholz will introduce a new approach of development, more advanced technologies and management experience, and an improved investment and social ecosystem, said She Chunming.

The project is helping the companies transform and upgrade, and has significant meaning for Binzhou’s development, he said, vowing full support and a better environment for the development of the project.