China / United States | A US company called China Direct has launched a new venture to recycle aluminium powder in China. The firm owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the US capital markets.
The new venture, named CDI Recycling, will be 83.3% owned by CDI Shanghai Management Co, Ltd, a wholly owned subsidiary of China Direct and will expand China Direct's clean technology division
China Direct will contribute US$352 000 in the form of working capital to construct recycling facilities with an annual recycling capacity of 1 000 metric tonnes of aluminium powder. China Direct anticipates the initial 1000 metric tonnes of annual capacity will be operational late in the second quarter of 2008. Also, the company plans to add an additional 4000 metric tonnes of annual processing capacity by June 2009.
Dr James Wang, Chairman and CEO of China Direct, stated 'By adding CDI Recycling, we continue to expand our Clean Technology Division, into the metal recycling business. Management is convinced that innovative recycling operations will become strong growth drivers worldwide as natural resources continue to be depleted. We intend to opportunistically expand this division throughout 2008 and believe that our clean technology segment will be a major driver of growth at China Direct in 2009 and beyond.'
CDI Recycling will focus on recycling aluminum wires to create aluminum powder, which consists of 99.65% pure aluminum. The company's recycling technology uses a combination of purely mechanical crushing and an improved ball milling procedure to increase recycling rates and degree of fineness. Traditional methods to produce aluminum powder expose aluminum to heat and oxygen, which creates substantial burning loss. CDI Recycling, through the use of a purely mechanical crushing method will eliminate burning loss.
Additionally, the company will utilize a specific ball vibrator design to mill the powder completely and evenly as opposed to traditional drum designs which management believes are less efficient. CDI Recycling’s methodology also insulates nitrogen from milling area to avoid potential oxidization. Through its process, management at CDI Recycling estimates it will produce non-oxidized superfine aluminum power from pure aluminum wires at a recycling rate of 98%.
Aluminium powder, depending on its mesh size, can be used in multiple industries including electronics as a conductor or dissipater of heat and electricity, metallurgy for molds and mixtures as well as metal coatings and rust proofing. Other applications include paints and coatings, chemical and metallurgical applications, propellants, explosives, and fireworks.
Management at China Direct estimates that while the venture will have a minimal impact on financial results in 2008, upon completion of expansion in 2009, the venture will have an annual production capacity of approximately US$15 million of aluminium powder assuming an average price of US$3000 per metric ton.
