(Yicai) March 14 -- Lizhong Sitong Light Alloys Group, a Chinese supplier of aluminum alloy materials and wheels, has joined hands with Japanese automotive giant Toyota on aluminum recovery and recycling in China and overseas.

Lizhong and Toyota will collect and sort recycled materials, develop and manufacture recycled aluminum alloy materials and car parts, and research and develop related production equipment and additives, the Hebei-based company announced yesterday, citing a letter of intent signed by the two parties.

Moreover, the two firms will carry out technical exchanges, equity cooperation, and other business tie-ups while avoiding conflict of interest in existing businesses, Lizhong noted.

Lizhong is one of the largest suppliers of aluminum alloy wheels in China. Its aluminum alloy wheel output exceeded 21.5 million tons in 2023, about 53 percent of which were supplied to overseas clients. The firm’s operating income from the aluminum alloy wheel business totaled CNY8.8 billion (USD1.2 billion) in 2023, accounting for 38 percent of the total.

Lizhong is also among China’s largest recycled cast aluminum alloy manufacturers, having recycled about 933,200 tons of aluminum alloy at its Chinese and Thai plants in 2023. Operating income from this business neared CNY12.5 billion (USD1.7 billion) that year, accounting for over 53 percent of the total.

Lizhong’s shares [SHE: 300428] were trading up 1.9 percent at CNY20.07 (USD2.77) as of 1.50 p.m. in Shenzhen today.

Editor: Futura Costaglione