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Close The Loop (ASX:CLG) has won approval from Mexican regulators to open and operate a tech metals recycling plant in Mexicali state.
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Called the “IT Asset Disposition” sector – ITAD – what CLG ultimately wants to do is recover high-value metals from e-waste.
The regulator in question is the Manufacturing, Maquiladora, and Export Services Industry Program in Mexico (IMMEX), which ultimately provides tax benefits to companies looking to manufacture in Mexico.
Close The Loop noted on Monday in a market release that its plant has already been “operationally ready for several months.”
With approval received, the company will begin recycling for tech metals in April.
In January this year, the company was prepared for a buyout deal with Adamantem. After a due diligence period was extended, that deal broke down, taking CLG’s share price.
“This facility will help support our OEM partners with certified refurbished product and services,” CLG wrote on Monday.
Among those OEM partners are fairly established names: Canon, Toshiba, Samsung, Panasonic, and even Fuji Xerox. (At least according to CLG’s website.)
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Shareholders liked the news on Monday: Shares were up 5.7% to 9.3cps, however, the company’s share price remains well below the 20cps+ valuation it commanded before takeover talks broke down.
How, if at all, a U.S.-Mexico trade war could affect the company’s operations remains a question for the future.
CLG last traded at 9.3cps through Monday morning.
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