Luyou equipment fits Europe, where aluminium scrap availability is limited and recycling rate requirements are high

In an exclusive interview with AL Circle, Shandong Luyou has explained the fundamental difference between aluminium scrap recycling and steel scrap recycling, and it lies in aluminium’s low melting point and high ductility compared to steel. Aluminium scrap derived from different end-user products like cans, automotives, or architectural bridges requires a unique processing approach. Luyou shares that technological advancements have helped them achieve high recovery rates, and they claim their equipment is even suitable for the European market, where scrap availability is limited, but recycling rate requirements are high.

AL Circle: Shandong Luyou has built a strong presence in China’s recycling equipment sector. Could you briefly walk us through the company’s growth journey and how you position Luyou in both the domestic and international markets, particularly in Europe?

LUYOU: Let me start with a brief overview of our development journey. Between 2007 and 2008, we established our first production bases in Lianyungang, Jiangyin, and Linyi. In 2011, we moved our headquarters to the Linyi Economic Development Zone, focusing on core equipment such as scrap steel shredders and alligator shears. Today, we have evolved from a pure equipment manufacturer into a comprehensive solid waste processing solution provider. A milestone of this transformation is our self-developed 6,000-horsepower shredder, which has been recognised as a First Set of Major Technical Equipment in Shandong Province.

As for our market positioning: In China, we position ourselves as a technology leader and a top-tier player in the recycling equipment sector. We serve key clients such as Gezhouba and GEM, and we aim to be the preferred choice for replacing imported equipment. In international markets, we now cover more than 20 countries. For Europe specifically, our strategy is to treat it as a high-priority market—not by competing on volume with low prices, but by using European standards as a benchmark to drive our own technological upgrades. Our entry strategy focuses on high reliability, low energy consumption, and intelligent features, with the goal of building a credible, premium global brand.

AL Circle: With demand for recycled aluminium rising sharply, how is Luyou helping recyclers improve processing capacity, recovery rates and operational efficiency? Do you see your equipment as a strong fit for markets such as Europe, where recyclers are under pressure to achieve higher recycling rates despite limited scrap availability?

LUYOU: On improving processing capacity, we focus on high-power, high-throughput shredding lines — such as our PSX series. These systems offer strong processing capability, ensuring that our customers can "take in the material and output it efficiently."

On improving recovery rates, we have achieved high recovery through technological upgrades. A unique crushing chamber design combined with high-intensity magnetic separation enables thorough separation of aluminium from iron, producing high-purity aluminium material. This increases aluminium yield and boosts our customers' profitability.

On operational efficiency, energy saving and efficient operation are fundamental. Through optimised energy-efficient design and the use of high-performance dust collection systems, we reduce power consumption and environmental risks while ensuring continuous and stable production.

Regarding whether Luyou equipment fits the European market - where scrap availability is limited but recycling rate requirements are high - we believe our equipment is highly suitable.

First, precision separation - Our systems can precisely separate high-value materials, maximising the extraction of pure metals from limited raw material inputs.

Second, strong compliance with standards - Many of our products hold EU CE certification, meeting the safety and environmental access requirements of the European market.

Third, high reliability and low operational losses - Our equipment offers high uptime and consistently processes every ton of scarce scrap material, helping our customers protect their margins.

AL Circle: Recycling equipment manufacturers in Germany and Italy are often seen as global benchmarks. In this competitive landscape, what makes Luyou’s technology stand out? Could you highlight the key features or advantages that differentiate your equipment in terms of performance, cost efficiency, automation or adaptability?

LUYOU: German and Italian equipment do represent the industry benchmark, but Luyou's differentiating approach is this: we don't aim to be the "most expensive" — we aim to be the "best-suited and fastest to pay back." Our advantages can be seen in four dimensions:

I. Equipment Performance: Focus on "Real Output," Not Redundant Specifications

European equipment is often known for "extreme durability," but that comes with a high procurement cost. Luyou's strategy is to make targeted breakthroughs.

In-house development of core components: Our self-developed core crushing components offer 30 per cent higher wear resistance, solving the downtime problem caused by frequent hammer replacements. One PSX-6000 horsepower shredder (a "First Set of Major Technical Equipment" in Shandong Province) can operate continuously for 24 hours without jamming.

Output purity benchmarked against international standards: Through our patented crushing chamber and adjustable screen mesh, we achieve output uniformity of ≥92 per cent and magnetic material separation efficiency of ≥98.5 per cent. High-purity material commands a higher price when sold to steel mills — that's our hard metric.

II. Cost Control: Our Core Moat

This is our most competitive advantage against European brands, realised at two levels:

Procurement and installation costs: As an original manufacturer, we eliminate intermediary markups. Our equipment has a small footprint and low foundation requirements (for example, the Model 315 requires only 80-100 tons of foundation load-bearing capacity). Installation and commissioning can be completed in 7-15 days, and civil construction costs are more than 30 per cent lower than traditional solutions.

Operational energy costs: European equipment typically has high power consumption. We use intelligent load matching + variable frequency drive, saving 15-20 per cent electricity compared to competitors. Taking our flagship 6,000-horsepower model (80-100 tonnes/hour output) as an example - high throughput spreads out labour and depreciation costs, reducing comprehensive processing cost per ton by RMB 5-10 compared to competitors.

III. Automation Level: Down-to-Earth Intelligence

We don't pursue "flashy full automation." Instead, we pursue "single-operator oversight with fewer breakdowns."

Intelligent control system: One-button start, remote monitoring, fault warning — significantly reducing reliance on highly skilled operators.

Complete one-stop solution: Seamless integration across the entire chain — shredding, sorting, baling. With magnetic separators and eddy current separators all available, customers don't need to piece together equipment from multiple sources.

IV. Adaptability to Working Conditions: Solving "Difficult Cases"

European scrap has complex composition and strong adhesion, which makes general-purpose equipment prone to underperformance.

For sticky materials: Our pig iron crushing dry mill is specifically designed for high-hardness, high-adhesion scrap. Through a kneading-style crushing action, it thoroughly separates different materials, extracting more pure metal from limited raw material inputs.

Flexible layout: Equipment supports both semi-underground and above-ground installation, adapting to limited renovation space in older European plants.

In summary: The core pain points in the European market are "limited scrap, high electricity costs, high labour costs, and strict environmental regulations." Luyou's equipment precisely addresses these four points — high purity commands better prices, low electricity saves real money, automation reduces labour needs, and environmental compliance eliminates risk. We don't compete with the Germans on "century-old brand heritage." We compete on our ability to help customers achieve a rapid payback on their investment within 2-3 years.

AL Circle: China’s “dual carbon” goals are reshaping industrial priorities across the recycling and manufacturing sectors. How does Luyou plan to align its future growth with these carbon peak and carbon neutrality targets?

LUYOU: Looking ahead, Luyou will continue to pursue a development strategy centred on "One Foundation, Two Wings."

The "One Foundation" refers to equipment manufacturing as our core business. We will keep strengthening our position in scrap steel, scrap aluminium, and end-of-life vehicle dismantling equipment — consolidating our base.

The "Two Wings" represent two strategic directions. First, moving toward high-end manufacturing, we will continue to deepen our capabilities in photovoltaic-grade high-purity quartz sand purification equipment. This is a new growth driver for us, and we aim to break through technological barriers in high-end equipment.

Second, transitioning toward intelligent and service-oriented solutions, we no longer just sell equipment — we provide solutions. For example, we are currently promoting an "Internet + recycling" system and a "lifetime shredder partnership" model. Through these services, we enhance customer value.

Our ultimate goal is to become a globally leading provider of circular economy equipment, contributing "Luyou's strength" to the green and high-quality development of China's manufacturing industry.

Regarding the "dual carbon" goals, Shandong Luyou Recycling Equipment Co., Ltd. has laid out the following plans:

Focus on energy-efficient equipment – Upgrade core products such as scrap steel shredders to reduce operating energy consumption and improve energy efficiency.

Ensure environmentally friendly manufacturing – Strictly control dust and noise during production to ensure green manufacturing processes.

Enhance material purity – Use high-efficiency sorting technologies to improve the purity of recycled metals, thereby reducing energy consumption and carbon emissions in downstream smelting.

Adopt digital and smart technologies – Leverage data to optimise the efficiency of the entire recycling chain and help customers achieve precise emission reductions.

In a nutshell: We use more energy-efficient and higher-performance equipment to help customers extract maximum value from recyclable resources while minimising carbon emissions.

AL CIRCLE: In addition to mixed metal sorting from end-of-life vehicles, we've noticed that Luyou has also made significant inroads into the specialised field of "aluminium scrap" recycling. What are the current pain points in aluminium scrap recycling, and how is Luyou addressing them with targeted solutions?

LUYOU: You've raised a key point. Scrap aluminium recycling is fundamentally different from scrap steel recycling. Aluminium has a low melting point and high ductility. Traditional scrap steel shredding processes tend to flatten aluminium into "foils" or compact it into "balls," resulting in significant material loss and oxidation. Furthermore, scrap aluminium comes from diverse sources – engine aluminium, architectural broken-bridge aluminium, beverage cans, aluminium chips, etc. – and each material type requires a very different processing approach.

To address these pain points, we have developed an integrated "shredding + sorting + purification" solution for scrap aluminium recycling:

First, for mixed scrap aluminium, we employ a combined process of a hammer shredder, a trommel screen, and an eddy current separator. The hammer shredder uses high-speed rotating hammers to impact the material, reducing scrap aluminium into uniform particles. The trommel screen then classifies the particles by size. Finally, the eddy current separator uses electromagnetic induction to "eject" non-ferrous metals such as aluminium and copper from the mixed stream with an efficiency of approximately 99%. This fully physical process uses no chemicals or incineration, making it particularly suitable for processing automotive shredder residue (ASR) and mixed aluminium scrap from waste household appliances.

Second, for composite profiles such as broken-bridge aluminium that contains plastic, traditional manual separation is slow and low-yield. Our shredding and sorting line can pulverise broken-bridge aluminium in a single pass and efficiently separate pure aluminium particles from the plastic fraction – completely solving the long-standing problems of low recovery rates and poor purity for this material type.

Third, for aluminium chips and fines generated by aluminium processing plants, we have developed a dedicated briquetting press. Aluminium chips are highly porous, with a bulk density of only 0.2–0.5 tonnes per cubic metre, resulting in extremely high storage and transportation costs. Our briquetting press cold-compresses aluminium chips into high-density briquettes, reducing their volume to approximately one-tenth of the original. This not only significantly lowers logistics costs but also reduces oxidation and melting losses, thereby improving the recovery rate during smelting.

Read all the latest developments in Europe’s aluminium recycling industry: Click here