Sims Metal Management provides metal recycling services primarily in Australia, the UK, and the US. In addition to processing steel and non-ferrous scrap, Sims also provides municipal recycling services in New York City; recycles electronics materials in Africa, the Asia/Pacific region, Europe, and North America; and distributes and trades scrap materials throughout Europe and the Americas. In Australia the company also recycles consumer and automotive plastics and owns a 50% stake in LMS Generation, a pioneer in converting landfill gas to energy. Sims has grown exponentially in the latter half of the decade, having acquired about two dozen businesses in Australia, North America, and the UK.
The company continued its global expansion in 2012 with a 16% stake in Hong Kong based recycler Chiho-Tiande Group (CTG). CTG says it is the largest mixed scrap metal importer in China. That year it also acquired Genesis Recycling, expanding its North America SRS electronics recycling business.
In 2011 Sims Metal Management increased its revenues by 19% and its profitability by more than half from the previous year. The hike in sales resulted from higher average ferrous selling prices and higher shipments. That year Sims' total scrap intake was 14.3 million metric tons and shipments were 14.2 million metric tons. Revenues were partially offset by the impact of foreign exchange rates and the increase in cost of materials. In 2011 Sims expanded both its geographic reach and product lines, which it credited to investing in strategic acquisitions and technology for its core businesses.
Sims' strategy is to be the world's leading recycler by widening its global footprint, particularly in North American and UK markets. In 2011 the company expanded its European and UK operations by acquiring three computer and IT asset recovery companies, Dutch-based Device, German company ergoTrade, and Glasgow-based S3 Interactive (S3i). Device has operations in the Netherlands, Poland, and Czech Republic; ergoTrade has operations in Germany and Hungary; and S3i is a leader in the UK. The deals greatly extend Sims' electronics recycling business in Europe.
That same year Sims, through its UK subsidiary, acquired Dunn Brothers, a Birmingham-based ferrous and nonferrous metals recycler. Dunn operates nine facilities across the UK, including shredders, nonferrous recovery systems, and dock facilities. The deal makes Sims a national player in the UK metals market and fulfills its strategy of extending its footprint into targeted regional markets. The company previously expanded its UK operations in 2010 with the acquisition of the business assets of Wincanton PLC's recycling division.
In 2011 the company also acquired from Promet Marine Services a deep sea export facility in Rhode Island, which will become Sims' main export terminal from New England. In 2012 the company continued its investments by buying a minority stake in Chiho-Tiande Group (CTG), a Hong Kong-based metals and electronics recycler that also operates in mainland China.
Sims established a new ferrous metals trading platform in 2010, called North America Trade, designed to handle third-party-generated materials. It also expanded its US presence by acquiring Fairless Iron & Metal of Morrisville, Pennsylvania, and the 50% stake in Port Albany Ventures in upstate New York that it didn't already own.
That same year, through a subsidiary, Sims also acquired the assets of Queensland-based Commercial Metal Recycling Services, which operates a network of eight yards across Australia.
Though originally based in Australia, Sims gets more than two-thirds of its sales from within North America and has its corporate headquarters in New York City. Australia, the UK, and the US are certainly the company's primary countries of operation, but Sims owns more than 90 subsidiaries and operates 230 manufacturing facilities in 15 countries. – less