Chiho-Tiande rides China scrap wave, takes over Germany's Scholz

Shanghai

CHINA is on the cusp of a scrap wave that will return metal from ageing cars and expired fridges to the supply chain in a growing threat to mining companies, according to Chiho-Tiande Group Ltd, a top recycler, which is taking over one of the biggest and oldest names in Europe's scrap business.

The firm is acquiring Scholz Holding Gmbh, a 144-year-old German company, in a deal that will expand its procurement channels in Europe and provide the technical expertise to process an expected surge of scrap in China. After 30 years of industrialisation, the country's pool of metal goods will start being recycled in substantial volumes in about two years time, beginning with cars, said chief investment officer Goh Kian Guan.