China Direct, Inc. (Amex: CDS), a U.S. company that owns controlling stakes in numerous Chinese companies, announced it has launched a newventure to recycle aluminum powder.
The new venture, named CDI Metal Recycling Co., Ltd.,will be 83.3% owned by CDI Shanghai Management Co., Ltd., a subsidiary of China Direct and will expand China Direct’s clean technologydivision which currently includes CDI Wanda New Energy Co., Ltd. and YantaiCDI Wanda Renewable Resources Co., Ltd.
China Direct anticipates an initial 1,000metric tons of annual capacity will be operational late in 2Q08. China Direct plans to add an additional 4,000 metric tonsof annual processing capacity by June 2009.
CDI Recycling will focus on recycling aluminum wires to create aluminumpowder, which consists of 99.65% pure aluminum.
Traditional methods to produce aluminum powder expose aluminum to heat andoxygen, which creates substantial burning loss. CDI Recycling, through theuse of a purely mechanical crushing method will eliminate burning loss, the company said. Through its process, management at CDI Recyclingestimates it will produce non-oxidized superfine aluminum power from purealuminum wires at a recycling rate of 98%.
Management at China Direct estimates that while the venture will have aminimal impact on financial results in 2008, upon completion of expansionin 2009, the venture will have an annual production capacity ofapproximately $15 million of aluminum powder assuming an average price of$3,000 per metric ton.
Dr. James Wang, Chairman and CEO of China Direct, stated "By adding CDIRecycling, we continue to expand our Clean Technology Division, into themetal recycling business. Management is convinced that innovative recyclingoperations will become strong growth drivers worldwide as natural resourcescontinue to be depleted. "
About China Direct, Inc.
China Direct, Inc. (Amex: CDS) is a diversified management and advisoryservices organization headquartered in the U.S. The company’s management servicesdivision acquires a controlling interest in entities operating in China. Ownership control enables China Direct to provide management advice, aswell as financing to Chinese entities. This infrastructure creates aplatform to expand their business globally while effectively andefficiently accessing needed capital. The company’s advisory services divisionprovides comprehensive advisory and consulting services critical to thesuccess of Chinese entities seeking to access the U.S. capital markets.
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