China Direct has launched  CDI Metal Recycling Company, a new venture to recycle aluminum powder.

Dr. James Wang, chairman and CEO of China Direct, stated "By adding CDI Recycling, we continue to expand our Clean Technology Division, into the metal recycling business. Management is convinced that innovative recycling operations will become strong growth drivers worldwide as natural resources continue to be depleted. We intend to opportunistically expand this division throughout 2008 and believe that our clean technology segment will be a major driver of growth at China Direct in 2009 and beyond."

The new company will be 83.3% owned by CDI Shanghai Management Co., Ltd., a wholly owned subsidiary of China Direct and will expand China Direct's clean technology division which currently includes CDI Wanda New Energy Co., Ltd. and Yantai CDI Wanda Renewable Resources Co., Ltd. China Direct will contribute US$352,000 in the form of working capital to construct recycling facilities with an annual recycling capacity of 1,000 metric tons of aluminum powder. China Direct anticipates the initial 1,000 metric tons of annual capacity will be operational late in the second quarter of 2008. China Direct plans to add an additional 4,000 metric tons of annual processing capacity by June 2009.

CDI Recycling will focus on recycling aluminum wires to create aluminum powder, which consists of 99.65% pure aluminum. CDI Recycling's technology uses a combination of purely mechanical crushing and an improved ball milling procedure to increase recycling rates and degree of fineness. Traditional methods to produce aluminum powder expose aluminum to heat and oxygen, which creates substantial burning loss. CDI Recycling, through the use of a purely mechanical crushing method will eliminate burning loss.

Additionally, CDI Recycling will utilize a specific ball vibrator design to mill the powder completely and evenly as opposed to traditional drum designs which management believes are less efficient. CDI Recycling's methodology also insulates nitrogen from the milling area to avoid potential oxidization. Through its process, management at CDI Recycling estimates it will produce non-oxidized superfine aluminum power from pure aluminum wires at a recycling rate of 98%.

Aluminum powder, depending on its mesh size, can be used in multiple industries including electronics as a conductor or dissipater of heat and electricity, metallurgy for molds and mixtures as well as metal coatings and rust proofing.