Japanese trading giant Mitsui & Co. is set to invest approximately 20 billion yen ($127 million) to acquire more than 20% of the MTC Group, a leading steel recycling company based in India by the end of FY 2025. This move will elevate MTC to an equity-method affiliate of Mitsui.
Strategic focus on decarbonisation: Mitsui’s investment aims to support decarbonisation efforts by promoting steel recycling, which significantly reduces carbon emissions compared to traditional steel production methods.
MTC’s operations and expansion plans: MTC operates over 30 metal recycling facilities across India, specialising in the collection, processing, and distribution of ferrous and non-ferrous scrap metals. Founded in 1974, MTC handles 2.2 million tonnes (mnt) of scrap annually, with 1.9 mnt being ferrous scrap. MTC has expanded its business to include dismantling end-of-life vehicles (ELVs). The company is poised to capitalize on India’s expanding infrastructure projects and growing automotive sector. MTC intends to expand into end-of-life vehicle recycling and integrate additional waste materials, including used batteries, into its operations.
India, now the world’s third-largest automobile market, presents robust growth potential. Mitsui plans to leverage its global sales network to enhance scrap metal sourcing from automakers in Japan, the US, and Europe. With stringent environmental regulations in India mandating the use of recycled steel in automotive manufacturing, demand for MTC’s products is expected to rise significantly.
Mitsui’s strategic vision: This investment aligns with Mitsui’s Medium-term Management Plan 2026, focusing on industrial business solutions and advancing the circular economy through global urban-mining initiatives. Mitsui’s partnership with MTC aims to establish a sustainable recycled resources supply chain in India, supporting the country’s transition to a decarbonized society amidst its rapid economic growth and industrial expansion.
Mitsui’s Global Recycling Initiative
For the past decade, Mitsui’s Metal & Mineral Resources Division has collaborated with MTC, a major player in India’s metal recycling industry. This new investment aligns with Mitsui’s strategic goal of enhancing its global metal recycling operations. Mitsui’s portfolio includes a stake in Sims, the world’s largest recycling company, with operations across Australia, Europe, and the United States.
By partnering with MTC, Mitsui aims to tap into India’s rapidly expanding market. The collaboration is expected to ensure a stable supply of raw materials and advance the circular economy (CE) within India’s growing steel industry. Leveraging MTC’s robust collection capabilities and Mitsui’s extensive recycling expertise from developed countries, this partnership will significantly boost India’s recycling sector.