The joint project with Germany's Scholz Recycling in an industrial park in Zouping will be able to process 500,000 tonnes per year of aluminium scrap and reduce average annual carbon emissions by 1.9 million tonnes when fully operational, according to the statement on an official WeChat account.

Like other aluminium producers in China, the world's biggest consumer of the metal used in everything from cars to cans, Hongqiao is seeking to use more scrap and tap cleaner power sources for the energy-intensive smelting process to cut its environmental footprint and lower emissions.

The company has said it will publish its carbon goals later this year.

Scholz, a unit of China's Chiho Environmental Group, holds 25% in the 1.5 billion yuan ($233.5 million) joint venture, which was set up last year and is also building facilities to dismantle and recycle vehicles that have reached the end of their life.

That part of the project, which will be put into operation in June 2022, will be able to process 100,000 vehicles per year, said the statement issued after a groundbreaking ceremony.

($1 = 6.4250 Chinese yuan renminbi)

(Reporting by Tom Daly; editing by Emelia Sithole-Matarise)