China’s HBIS Group (Hesteel Group Company Ltd) and TMS Group of the United States recently signed an MoU for the HBIS-TMS Scrap Steel Processing Center project. HBIS Group is one of the world’s largest steel manufacturers. On the other hand, the US-based TMS Group (Pritzker) is the world’s leading specialised ferrous scrap trading, processing, and distribution company.
The cooperation agreement is fully in line with the strategic direction and development plans of the two companies, and provides an outline for both to develop an efficient scrap steel recycling business in the Chinese market.
At an online event to announce the MoU, in the presence of HBIS Chairman Yu Yong, Pritzker Group Board Chairman Thomas J. Pritzker, said : “Scrap steel is a recyclable raw material and one of the key solutions to reducing carbon emissions and green steelmaking. Both parties should work together to lead the development of scrap steelmaking.”
According to the agreement, the two parties will integrate resources through investment in new facilities, or mergers and acquisitions, and improve scrap recycling, processing, distribution, finance and trade, and build the joint venture into a comprehensive scrap processing company in the country.
The two companies will jointly promote climate action plans and adopt measures to promote carbon neutrality. Carbon emission for one tonne of steelmaking, using scrap steel as the raw material, will be reduced to about 0.5 t while, steel produced by the traditional blast furnace steelmaking, is nearly 2 t.
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