ALBA Group Launches New Joint Venture with Leading Auto Recycler

SEATTLE (Scrap Monster): The German recycling and raw materials major Alba Group has announced further expansion of its Asian footprints through acquisition of majority stake in one of the largest automotive recycling companies based in Shanghai.

The company has announced that its recycling division has entered into an agreement with Shanghai Baosteel Auto Recycling Co., Ltd. to purchase 51% stake in that company. According to press release issued by ALBA Group, the remaining 49% stake is held by Shanghai Baosteel Iron & Steel Resources Co., Ltd., a subsidiary company owned by the steel major Baowu Group.

Dr. Axel Schweitzer, CEO of the ALBA Group noted that the company is extremely pleased to venture out into automotive recycling market in Asia by employing latest technologies and technical knowhow. The joint venture project aims to set an example for the whole of China and the rest of the world through display of environment-friendly processing of discarded vehicles. The new tie-up will further help to strengthen its position in the Chinese recycling sector, by making it a dominant player in the domestic recycling market. Alongside it also intends to support the country in its efforts to build a modern and sustainable circular economy, Schweitzer added.

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Through the joint venture automobile recycling project, ALBA Group aims to utilize Baosteel’s local contacts in order to tap the vastly unexplored and rapidly growing Shanghai auto recycling market. As per estimates, Greater Shanghai region alone has more than 3.2 million vehicles. The region currently has only limited number of licensed players who deal with proper dismantling and recycling of used vehicles.

The ALBA Group has been involved in a number of recycling projects in the region. Initially, it had signed a multi-million e-waste recycling contract with Hong Kong to build a modern e-scrap recycling facility near Hong Kong International Airport. Also, it is also actively involved in the construction of a hi-tech recycling park named ‘Deyang Resource Recycling Industrial Park’ southeast of the city of Deyang in Chinese Sichuan province at a cost of $1.2 billion.

With its two brands - ALBA and Interseroh - and a total of about 7,500 employees ALBA Group operates within Germany, Europe and Asia. The Baowu Group was established by consolidation and restructuring of former Baosteel Group Corporation and Wuhan Iron & Steel (Group) Corporation.