The takeover of Cymru Metals Recycling Ltd will see Sims taking on a business handling over 150,000 tonnes of material each year.
” Cymru Metals Recycling will make a significant contribution to the ongoing development of our UK business. “
– Tom Bird, Sims Group
Australian-listed Sims Group said the move had been made under its stated plans to grow metal recycling activities across the globe.
It said the addition of Cymru Metals strengthens Sims Group UK’s network of collection, processing and export facilities across England and Wales.
The Cymru Metals business includes an export dock and provides a traditional range of metal recycling services. As an accredited authorised treatment facility for end of life vehicles, Cymru Metals currently recycles approximately 50,000 vehicles a year.
Presence
Tom Bird, Managing Director of Sims Group UK’s metal recycling division commented: “The acquisition of Cymru Metals Recycling expands Sims’ presence into West Wales and strengthens our position as a leading UK metal recycler. Cymru Metals Recycling will make a significant contribution to the ongoing development of our UK business.”
The acquisition comes just over two years after Cymru Metals was prosecuted by the Environment Agency for storing residues from its recycling operation at a site near Ammanford that did not have a waste management licence. Although the subsequent fine was relatively small at 4,000, the legal action saw the company paying out 37,000 to clean up its site. It has since registered as a full authorized treatment facility with the Agency.
The takeover of Cymru was announced this week along with the announcement of Sims' acquisition of an Australian scrap firm Menzies Metal Recycling.
Addressing shareholders, Sims Group chief executive Jeremy Sutcliffe also noted that “work on certain targeted acquisitions by the company’s Recycling Solutions Division is well advanced and a further commentary will be provided at the appropriate time”.
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