Investment opportunity

  • High-yielding investment in aluminium production/industrial recycling sector, factoring-type/working capital increase financing.
  • Secured debt, 17,8% planned annual return.
  • Investment principal buyback is available at 5% penalty rate.

Project description

The company ALL RECYCLING SIA (www.dilers.lv) is a Latvian venture with long and successful background in the sphere of processing and trade of non-ferrous metals, where it was working since 2006. In the year 2017 ALL RECYCLING SIA acquired business of a company that was dealing with production of aluminium alloys and utilization of different types of hazardous waste. The deal included all equipment, technologies and know-hows, personnel, and state permissions and licenses.

As a result, in 2019 ALL RECYCLING SIA is a company with a big number of manufactured products and provided services, such as:

1. Production of secondary aluminium alloys in ingots. Ingots are produced according to strict quality standards, in company labelled packaging, ready for transportation by road. Chemical analysis of every melt as well as dimensions, weight and other key parameters of the cargo are specified in the Quality Certificate/Packaging List, prepared according with the EN 10204 3.1 standard, that accompanies every shipment.

2. Production of primary aluminium billets. These billets are produced by direct chill casting and are characterized by strong resistance to corrosion, high extrudability, and are suitable for manufacturing of different profiles, pressed and extruded details. These high-quality billets are produced according to AirSlip patented technology using special equipment, produced by American company Wagstaff.

3. Production of aluminium deoxidizer in pyramids. The deoxidiser is produced in different specifications with aluminium content from 91% to 97%.

4. Recycling of hazardous waste. That includes a wide variety of waste, such as:

  • Accumulators, cellular phone batteries, and galvanic elements
  • Obsolete electronic equipment of all sizes, including computers, household electronics, manufacturing equipment, etc.
  • Rubber waste and old car tyres
  • Used oil and oil filters
  • All types of packaging
  • Plastics and PET waste
  • Glass and textile waste
  • Paper, carton, and wood waste

5. Utilization of old vehicles. Official utilization is conducted according to the procedure, issued by the state authorities, in result of which a Certificate of Destruction is given to the owner of the vehicle, and it is excluded from the Latvian vehicle state register.

6. Collection and recycling of medical waste. The company provides special containers for collection and storage of special waste to medical institutions, pet hospitals, dental practices, beauty parlours and other clients. Afterwards the containers are collected and the waste is recycled according to corresponding requirements.

7. Termination of paper documentation and fake, obsolete, and faulty products of different types with 100% guarantee of non-recovery. A respective Certificate of Destruction is issued in every case.

8. Trading of metal scrap. The company buys and sells scrap metal, containing copper, bronze, brass, lead, zinc, tin, stainless steel and nickel-content alloys, titanium, iron, precious and rare-earth metals, and used car catalysators.

ALL RECYCLING SIA is looking to attract factoring-type/working capital increase financing up to EUR 1,5 mln for time period of 11 months in order to conduct additional purchases of raw materials across the region and increase the production output, which will allow the company to satisfy the demand for its aluminium products, mainly the secondary aluminium alloys in ingots. ALL RECYCLING SIA is currently selling its produce to a number of Eastern and Central European countries, including Balkans. Additional funding will help to increase the number of clients and expand the company’s retail network.

Market

Düsseldorf, 11 October 2018 – At ALUMINIUM 2018, Europe’s leading aluminium trade fair, European Aluminium confirmed that the outlook for the European aluminium market is positive. Overall, the industry shows positive numbers for semi-fabricated products driven by the strong demand in the transport sector, and a good performance in the building and construction, packaging and machinery sectors. European primary production, however, is experiencing temporary clouds due to trade challenges including the U.S. tariffs on aluminium, sanctions on Rusal and Chinese overcapacity.

“Trade frictions are a reality. The multilateral global trade system is not equipped to rebuild a level playing field for our industry and other strategic industries. Despite this context, our extrusion and rolling markets are showing a positive outlook and an optimistic short-term future due to the vitality of the automotive sector and a high demand for aluminium for aerospace applications and in the building and construction and packaging sectors. Thanks to its superior properties aluminium remains in high demand by leading industries,” said European Aluminium’s Director General Gerd Götz.

European Aluminium estimates 2% growth in the extrusion market for 2018 and 2019 with the total market in Europe amounting to 3.2 million tonnes. However, trade data from the European Union also indicate a strong increase of 14% in non-European imports during the six first months of 2018, with Chinese imports representing the lion’s share.

 

For flat-rolled products, strong growth of 3% is forecasted for the year 2018 with continued growth expected in 2019.

The total European market estimated to be 5.3 million tonnes. As a result of the growing demand, rolling companies have produced 3% more in the first half of this year than during the same period last year, but while exports outside Europe grew by 10%, trade data also indicate a double-digit increase in imports during the same period.

While the rolling and extrusion markets are showing strong numbers, European primary production has declined by 1% during the first half of the year. The reason is the U.S. sanctions against the Russian aluminium producer Rusal, which is a major supplier of the EU’s primary metal and alumina. Last year, Rusal exported 1.6 million tonnes of primary aluminium to the EU which represents around 20% of the EU's imports of primary metal. ln addition, around 45% of the EU’s supplies of alumina, the raw material needed to produce primary aluminium, is supplied by Rusal.

“Securing alumina supplies to our smelters in Europe should be seen as one of the cornerstones of aluminium industrial policy. We cannot secure a functioning aluminium value chain from production to recycling without a reliable supply of alumina. Uncertainty about short-term supplies means less production, less innovation, and more metal dependency. Europe needs to voice its concerns to preserve investments and jobs and restore production levels soon,” concluded Götz.

(Taken from www.european-aluminium.eu)

Sample repayment schedule

Envestio participant’s investment - EUR 1 000.00
Payments:

  • 12.04.2019 - EUR 15.12
  • 12.05.2019 - EUR 14.63
  • 12.06.2019 - EUR 15.12
  • 12.07.2019 - EUR 14.63
  • 12.08.2019 - EUR 15.12
  • 12.09.2019 - EUR 15.12
  • 12.10.2019 - EUR 14.63
  • 12.11.2019 - EUR 15.12
  • 12.12.2019 - EUR 14.63
  • 12.01.2020 - EUR 15.12
  • 12.02.2020 - EUR 1015.12

Total expected return: EUR 1 164.36

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Informationen zum Projekt

Kredit IDEN018089
Projektstartdatum12.03.2019
KreditnehmerALL RECYCLING SIA, Reg. Nr. 40003802301, Latvia
Finanzierungsziel€ 500 000
Zweck des DarlehensFactoring-type/working capital increase financing for additional purchase of raw materials for metal production
Darlehenszeit11 months
Zinsrate17,8% jährlich
Rückzahlung des DarlehensIn full at the end of the Loan Period
Kapitalrückkauf möglichYes, 5% penalty rate
Zahlung von ZinszahlungenMonthly, on a specific date
Typ der FinanzierungSecured debt
Garantie vom Eigentümer des ProjektsCommercial pledge in favor of Envestio Collateral Agent, Personal guarantee

 

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