CICC Regeneration: "Picking Up Junk" To Make Billions Of Businesses

Referring to the scrap metal recycling, the first thing to enter the minds of people may be the hawker image of recycling waste copper and iron.

Perhaps no one would have thought of such a "

The 10 billion largest collection of scrap metal is China's largest recycling, production, processing and marketing of recycled metals.

"Although domestic enterprises engaged in scrap metal recycling are numerous, but we are taking different roads, such as large-scale operation, modern management, environmental protection mechanization production, national strategic layout, expansion of water and land pportation network and quality customer base and perfect purchase and purchase network."

CICC chairman and Chief Executive Officer

Starting a business at a high starting point

Before 2000, Qin, like many entrepreneurs in Guangdong, mainly focused on traditional steel import trade.

At that time, benefiting from the domestic demand for steel, Qin Zhiwei quickly accumulated the first pot of gold for himself.

Later, Qin Zhiwei was sensitive to the fact that China's steel supply and demand began to overtake, and from the import of steel to a net exporter, "steel is no longer a scarce commodity. What is lacking now is raw materials for steelmaking."

When it comes to raw materials for steelmaking, people will first think of iron ore which is rising year by year, but in the old steel powers such as the United States, scrap steel is a more widely used raw material.

Scrap steel does not need to be mined. Instead, it is processed directly from the leftover materials produced in the manufacturing industry and the scrap metal that is recovered from life.

Compared with iron ore, the energy consumption of scrap steel is less than 60%, water consumption is less than 40%, waste emission is less than 97%, exhaust emission is less than 86%, and wastewater discharge is less than 76%.

At that time, Qin Zhiwei had a faint feeling that there would be much room for development to turn into scrap steel business. After all, the market demand for scrap recycling industry in China was still very large. The demand for the scrap recycling industry was about about 80000000 tons per year, and the size of the company was smaller, and the dispersion concentration degree was not high.

Before deciding to formally intervene in the field of reclaimed metal recycling, Qin went to the recycling metal recycling industry in Europe and America.

From the beginning to intervene in this new field, Qin Zhiwei was determined to invest heavily in "high starting point".

As a result, in the domestic use of manual separation, CICC has spent tens of millions of dollars to introduce the most advanced international metal crusher from Germany, with an capacity of 100 tons per hour.

Highly mechanized processing improves production and operation efficiency, reduces dependence on personnel and costs, and significantly improves economic scale and competitiveness.

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Capital account of expansion Road

In addition to scrap steel, gold recycling will also recycle copper, aluminum and other non-ferrous metal products.

Leftover appliances, waste cars, demolition, decoration, steel mills, automobile manufacturers, household electrical appliances factories, ship breaking and so on are the main sources of recycling of gold in the production process.

In addition, the company also imported some scrap and scrap copper from abroad.

After collecting these scrap metals, they are then cut, broken, striped, separated and compressed into a large processing equipment.

Therefore, in the regeneration site of CICC, you can often see an old car and old household appliances coming from the head of the production line, and a pile of steel, copper, aluminum and plastic are automatically separated and output. After processing, they are sold to customers as raw materials again.

For the regeneration of CICC, large steel mills are their important customers. At present, 7 of the 15 steel mills which mainly use scrap steel are already regenerated customers of CICC. Therefore, the recycling base of the company is mostly near the steel plant area, and has signed a long-term contract with the main suppliers and customers.

At that time, Qin Zhi Wei also took the form of "bundling" with the steel plant, and set up a joint venture with Zhujiang steel, which was underwritten by Zhujiang Iron and Steel Co. Ltd., and then invested in equipment and external procurement.

"At that time, many people still did not understand such a company, the university students did not want to come, and the banks did not dare to borrow money. When the government approved the project, they also suspected that the companies that had been torn down were investing thousands of money to make money." Qin Zhiwei recalls, but after six months, when the turnover began to take shape, he made his decision right.

In the second year, Qin Zhiwei earned about 20000000 and third earned about 40000000. In this way, the initial investment of 50 million of the equipment to build a factory in Guangzhou was easily returned.

Subsequently, CICC began financing and issuing bonds through the capital market.

With the expansion of the scale, Qin Zhi Wei found that logistics costs accounted for 20%~30% of the production cost in the recycled metal recycling industry, so he began to attach importance to the construction of the supporting logistics network.

At present, CICC has 3 Wharfs in Guangdong and Jiangsu, and has several ships of its own.

"Now many steel mills are moving to the coast, and shipping costs are cheaper than land pportation."

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The future of "picking up junk"

Now, Qin still believes that the renewable metal recycling industry has room for sustained growth.

"China is the largest consumer of metals in the world and consumes 1/3 of the world's metal resources. After China's reform and opening up and development 30 years later, a large number of scrap metals will be released to the market. With the development of China's continuous industrialization and urbanization, the demand for recycled metals will continue to be strong. At present, China's regenerated metal ratio is still far below the world level."

However, Qin Zhiwei also acknowledged that at present, people's environmental awareness and environmental protection obligations are still lacking in comparison with those of developed countries. "For example, waste electrical appliances should be handed over to special places for disposal instead of being discarded at random. In many parts of China, there are thousands of workshops scattered around, which not only have low recovery rate, but also deal with waste electrical and electronic products and circuit boards in the backward way such as open-air incineration, strong acid soaking, and exhaust emissions, waste liquid and waste residue at random, resulting in serious environmental pollution and harm to human health. It is necessary for the government to make laws and regulations to regulate them."

"The government encourages manufacturers, sellers and recyclers of waste household appliances to form an environmental protection system for recycling, processing and processing. This can avoid duplication of investment and establish a comprehensive recycling system soon, because manufacturers and distributors have old recycling channels and logistics distribution systems, and recyclers have their own recycling systems and processing bases."

Qin Zhiwei said.

At the same time, in order to occupy more market share and achieve larger scale production, Qin Wei Wei is still looking for more acquisition targets and expanding the company's domestic network.