Meretec the East Chicago based subsidiary of MITL have announced that they are now in detailed negotiations with multi-nationals including one of the World's largest OEM's, with a view to investment in their unique De-Zincing technology which is protected by various patents.
MITL's Chairman Mr. Young who represents the largest shareholder was quoted as saying: " We are now hopefully entering the final time period for a decision regarding which multi-national group will be using this unique technology in the future. There are five major multinational companies who have expressed a serious interest, and of course we intend to negotiate the best possible price for our shares and retain an interest in the business going forward if possible".
Meyado are the main shareholder in Meretec and have invested over $26 million in the plant since 2000 when construction was started in East Chicago. The unique process strips off the Zinc Coatings on galvanised scrap and return the material to it's original form which makes the scrap steel much more valuable. In addition the process also captures over $30 worth of Zinc Powder per tonne of scrap which is processed making this a most compelling financial argument for Automotive Companies and Stamping Plant Operators.
Apparently MITL is successfully producing and selling clean steel scrap and zinc powder. The management of MITL remains positive with regard to the prospects of completing an outside investment within the Meretec business in 2005.
MICHAEL CHING, Commodity News.