China Automobile Parts, SRI Elastomers join hands to set up recycling plant in China
China Automobile Parts Holdings Ltd ( CAP) has entered into Memorandum of Understanding (MoU) with SRI Elastomers Sdn Bhd to set up a rubber-scrap recycling plant in China to meet the country’s growing demand for recycling rubber tyres and rubber waste products. Both companies will invest $3million for the plant.
The MoU will provide an opportunity for CAP to venture into related industry in recycling rubber products by leveraging on SRI’s business network and customer base, said the Chinese company in a statement.
“The objective of the MoU is to record the intention to form an alliance with SRI to jointly venture to commercialize the SRI Technology in the city of Xiamen, Fujian Province, China with the establishment of a production facility to recycle end of life tyres and other processed rubber products to produce SRI Compound to be used in the production of new rubber products,” said CAP.
According the statement, the MoU is valid for a period of six months effective from the date of this MoU and may be extended by mutual agreement.