China Resources Recycling Group Adds Two New Subsidiaries: Will It Expand Into Plastic Recycling?
Introduction
According to a report by *China Times Daily*, China Resources Recycling Group Co., Ltd. (CRRG), the first central state-owned enterprise (SOE) in the recycling industry, has garnered significant attention since its inauguration in Tianjin Eco-City on October 18. Over the past month, CRRG has undertaken notable initiatives aimed at building a national platform for resource recycling and reuse.
Addition of Two New Subsidiaries
Upon its establishment, CRRG announced plans to merge and restructure outstanding industry players while setting up specialized subsidiaries. Recently, China Resources Environmental Protection Technology Co., Ltd. (China Resources Environmental) and Ouyeel Recycling Resources Co., Ltd. (Ouyeel Recycling) joined the group.
China Resources Environmental's official website and social media accounts confirmed that the company became a member of CRRG in October 2024. Meanwhile, Ouyeel Recycling’s president, Yan Gequn, has been nominated as a deputy general manager of CRRG. During a meeting with Zhao Lijun, Secretary and Director of the Heilongjiang Supply and Marketing Cooperative, Yan highlighted that Ouyeel Recycling, with its nationwide scrap steel recycling network and China’s first smart factory for metal recycling, had fully integrated into CRRG.
Before joining CRRG, Ouyeel Recycling was a first-tier subsidiary of China Baowu Steel Group, headquartered in Shanghai. Its predecessor, Ma’anshan Steel Scrap Co., Ltd., was established in April 2011 and is part of the second batch of scrap steel processing enterprises meeting the Ministry of Industry and Information Technology’s criteria.
Potential New Additions
Which enterprise will join CRRG next?
On November 8, CRRG’s leadership conducted its first large-scale post-establishment field research. During the nine-day survey, the team visited Ouyeel Recycling, China Resources Environmental, CECEP (Shantou) Recycling Resources Technology Co., Ltd. (CECEP Shantou), and Hunan Lithium Circular New Energy Technology Co., Ltd. (Lithium Circular).
The inclusion of CECEP Shantou and Lithium Circular in this survey signals their potential integration into CRRG, further strengthening the group.
CECEP Shantou, established in February 2015, is a third-tier subsidiary of China Energy Conservation and Environmental Protection Group. Its operations include recycling and processing electronic waste, refining rare and precious metals, and treating waste industrial materials. It has an annual capacity to process 20,000 tons of waste printed circuit boards and produce 4,000 tons of anode copper.
Lithium Circular, founded in September 2022, is a subsidiary of China Minmetals. It focuses on building an end-of-life battery recycling system that integrates online and offline platforms for battery trading, assessment, processing, and data services.
Addressing Resource Recycling Challenges
CRRG’s shareholders include Sinopec, China Baowu Steel Group, China Minmetals, China Resources, and Chinalco. The group’s chairman, Liu Yu, stated, "We aim to seize the opportunity presented by the growing circular economy, leveraging SOE resources to integrate domestic industries and build a national platform for recycling and reusing resources."
Government initiatives, such as the *Opinions on Accelerating the Establishment of a Waste Recycling System*, have set ambitious goals for 2025:
- Utilize 450 million tons of major recyclable resources annually, including scrap steel, copper, aluminum, plastics, and more.
- Achieve an annual output value of 5 trillion RMB in the recycling industry.
Despite these aspirations, challenges such as insufficient industry standards, limited support policies, and the lack of leading enterprises continue to hinder progress. However, these shortcomings highlight the sector's vast potential.
Will CRRG Expand Into Plastic Recycling?
Thus far, CRRG’s actions have not explicitly targeted plastic recycling. Although Sinopec, one of its shareholders, is involved in small-scale plastic recycling projects through investments in companies like Leju and regional subsidiaries, its overall scale remains limited.
Whether CRRG will significantly expand into plastic recycling remains an open question, but its next moves are highly anticipated.
(Content and images sourced from the internet.)