China’s Ministry of Industry and Information Technology (MIIT) has launched its annual drive to persuade more of the country’s scrap recycling and processing companies to become qualified under its certification system and is calling on prospective applicants under its 2023 recruitment campaign to submit applications by March 31, the ministry said in a statement issued on February 8.
The ministry is aiming to attract qualified steel scrap suppliers into the market and continues to encourage scrap collectors and processors to build long-term cooperative relationships with steelmakers, seeing this as the best way to create a sustainable yet environmentally responsible materials’ recycling industry, Mysteel Global noted.
Since 2013, China has undertaken ten such annual campaigns, with the total number of steel scrap processing enterprises winning approval now totalling 707 and hosting around 160-170 million tonnes/year of processing capacity, Mysteel Global understands.
Successful applicant firms must meet tough criteria regarding their facilities and work practices. For example, scrap recyclers, especially newly established firms, must ensure that their scrap-processing capacity is above 150,000 t/y and that their factory area is no smaller than 30,000 square meters.
Moreover, those scrap recyclers seeking to become qualified must host completely sustainable resource-processing facilities, such as scrap metal balers, shears and shredders boasting higher efficiency and lower energy-consumption, as reported.
Successful applicants can enjoy a number of preferential policy benefits, the most attractive of which is a substantial refund of up to 30% on their VAT payments.
After accepting scrap suppliers’ applications, MIIT will ask local inspection departments to review the qualifications of those firms applying regarding their environmental protection efforts, facilities, and production safety measures, and report back to the ministry by April 30, the statement said.
During 2022, MIIT added 144 scrap companies to its list of approved firms while removing 21 suppliers, as reported. Though the ministry gave no detailed reason for disqualifying the firms, this often happens when firms are absorbed by other companies, go bankrupt or withdraw from the industry for some reason, Mysteel Global notes.
Written by Lindsey Liu, liulingxian@mysteel.com
Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.
Leave a Reply