At the BIR World Recycling Convention in Singapore, pioneering Chinese companies with overseas operations shared insights into their success amid China's restrictions on scrap imports.
Paul Coyte, Managing Director of F. Hayes and Company (NZL) and President of the Non-Ferrous Metals Division, emphasised the importance of managing opportunities and threats in the recycling industry. He encouraged attendees to learn from each other to improve their approaches and build lasting companies.
Anthony Wong, an Executive Board Member of Delta Metal (Holdings) Co. Ltd. (CHN), discussed his company's plans to establish its first facility outside China, where they already operate four with a combined capacity of 420,000 tonnes (t). He cited China's strict regulations on scrap imports since 2020 as a major reason for offshoring, along with rising domestic costs and trade tensions with the US This tight supply of recycled materials in China pushed Delta to explore new markets.
Wong highlighted opportunities in cost efficiencies, a global talent pool, and partnerships, particularly as Chinese car manufacturers also expand into Southeast Asia.
However, Wong acknowledged significant challenges in navigating new countries, cultures, and regulations. He stressed the importance of conducting thorough feasibility studies and being agile in response to political changes. Partnering with experienced local firms, like Daiki Aluminium Industry Co. Ltd. in Thailand, has been beneficial for Delta in overcoming these obstacles.
Another company exploring Thailand is Ningbo Jintian Copper (Group) Co. Ltd., which specialises in copper processing. Vivian Jiang, General Manager of the company's import and export subsidiary, shared that they have invested $28 billion in modernising operations to enhance copper quality and reduce emissions. Thailand's geographical advantages and government incentives for foreign investment in copper processing have made it an attractive location for Ningbo Jintian.
Sean Davidson, CEO of Davis Index (Canada), forecasted a significant increase in demand from China as its economy improves due to government stimulus. He noted challenges in the US market, where the supply of copper scrap is projected to become insufficient by 2030. With increasing investments in the US aluminum industry and new capacities in Asia, Davidson predicted heightened competition for scrap materials, suggesting that creativity will be essential in navigating these supply challenges.
