With strong demand for platinum, German technology group Heraeus has made a US$100 million investment in China . The new precious metals refining and recycling plant in China is due to open in Nanjing in September. The new 84,000-metre facility is expected to employ up to 350 workers and at full capacity will help boost logistics and financing services for clients in China. The focus of the new facility will be to make precious metal-based products for use in the auto, glass, fertiliser and related industries.
“We already have some refining capacity in China. With higher demands expected, we’ve decided to consolidate and expand those into one big factory where we can do refining but also make chemical products”, said Andre Christl, who heads Heraeus precious metals department.
The new investment by Heraeus also follows a multi-million investment upgrade of their Wartburg, Tennessee facility in May which was originally established in the US in 2004. The upgrade will substantially increase the plant’s pre-processing capacity to meet growing demand from customers in the chemical, electronics automotive and jewellery industries.
Given the changing political and regulatory environment many multi-nationals are facing throughout the world the Heraeus investment in China is a bold strategy and reflects their belief in political stability and an expectation that the ‘world trade skirmishes’ between the super powers will be worked out. The German government and the EU have generally developed a solid working relationship with the Chinese, and despite the recent problems with the US over tariffs many commentators feel commercial considerations will overcome the inherent political problems.
Recycal is hopeful that the global opportunities for Australia in recycling with our intellectual capital and proximity to Asia will see more domestic investment in capital efficient equipment. With more innovation we can meet the needs of our growing metal processing industries.
