Mitsui & Co. Ltd., a Tokyo-based conglomerate with a global presence in the metals industry, has announced it will invest in Mumbai-based MTC Business Private Ltd., which it describes as “one of India's leading metal recycling companies.”
States Mitsui, “After the investment, MTC will become an equity method affiliate of Mitsui.”
MTC Group has more than 30 metal recycling locations in India and is involved in the collection, segregation, processing, transportation and distribution of ferrous and nonferrous scrap, says Mitsui.
“As the leading company in the industry, one of the directors of MTC serves as the president of the Material Recycling Association of India (MRAI),” adds Mitsui, referring to Sanjay Mehta of MTC.
Mitsui points to growth in the global recycling industry and the steel and metals production sectors in India as reasons underlying the investment.
“In recent years, amid accelerating economic growth and population increase, infrastructure development, including highway and high-speed railway projects, is advancing in India and significant expansion is expected in its manufacturing industries, such as in automobile production,” writes the Tokyo-based firm.
Continues Mitsui, “To meet the anticipated increase in demand for steel, India's steelmaking industry, which supports the growth of the Indian economy, plans to expand its production capacity. Demand for metal scrap is also forecast to increase over the medium to long term as a recycled raw material that contributes to the decarbonization of the steel industry.”
Regarding MTC specifically, Mitsui says the firm “is expanding its business by utilizing the collection network it has built up over many years of operation and the relationship of trust it has cultivated with its business partners. Further, MTC plans to make a full-scale entry into the recycling business for end-of-life vehicles, which is expected to see significant growth over time, and it is aiming to become an integrated recycling company capable of processing a wide range of waste materials, including used batteries.”
Mitsui says its own presence in the minerals and metals sector goes back to the 1960s via involvement in “ferrous metals, such as iron ore and metallurgical coal, and also through its involvement in nonferrous metals development, such as copper, nickel, lithium and aluminum.”
Regarding recycling, Mitsui adds, “Aiming to realize a circular economy, Mitsui has also prioritized the urban mining business represented by metal recycling. To that end, Mitsui has invested in Sims Limited, the world's leading recycling company, headquartered in Australia, and in MM Kenzai, headquartered in Minato-ku, Tokyo. With these solid foundations, Mitsui has actively expanded the metal recycling business around the world.”
Concludes the company, “Through this investment, Mitsui will contribute to the establishment of a recycled resources supply chain and to the realization of a decarbonized society in India, as the country continues to grow.”
Courtesy : recyclingtoday.com