French-owned SITA's acquisition of Norfolk-firm Easco marks the company's first scrap metal venture in the UK although it does have scrap yards in France.
 Per-Anders Hjort, SITA |
UK chief executive Per-Anders Hjort said he expects the UK will eventually follow the European trend with the “waste industry becoming more active in scrap metal and scrap metal firms becoming more active in the waste industry.”
Mr Hjort said SITA is trying a “different approach” to its recycling operations by taking on scrap metal and added: “It's about trying to get value out of the waste stream and move into commodities rather than services.”
He explained that one of the marked differences for businesses dealing in recyclables such as paper and glass, compared with scrap metal is the financial aspect.
Reprocessors who want dry recyclables have to pay for them to be collected whereas the demand for scrap metal is so high, reprocessors will instead pay to collect them.
Mr Hjort added: “For us, it's about trying to get value out of the waste stream and move into commodities rather than services. And it's an expertise we can add to our portfolio.”
SITA's chief executive will also bring his own knowledge to the table, having worked for a scrap metal firm which acquired waste management businesses in Sweden, in the mid-1990s.
Easco
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Mr Hjort would not reveal the cost of the acquisition but has said that SITA will operate Easco as a “stand alone” business meaning few changes to current operations. The company, which has a 550,000 tonne annual capacity, is one of the UK's largest metal recyclers.
Easco was set-up in Watton, Norfolk, in 1984 and is split across 13 sites. It employs almost 300 people and its annual revenue is 90 million.
It provides services across many sectors including manufacturing, local authorities and the automotive and rail industries, with its turnover more than doubling in the last three years. It also provides consultancy services to help organisations comply with End of Life Vehicles (ELV) and Waste Electrical and Electronic Equipment (WEEE) directives.
Easco exports more than 50% to countries in Europe, the Indian sub-continent and the Far East.
Mr Hjort said: “Easco has a good working relationship with its customers and clients and we hope to reinforce this and expand the business.”
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