• Sims Metal Management Limited
• Website: www.simsmetal.com.au

Industry:

Metals & Mining

Fiscal Year-End:

Jun 10

SGM undertakes recovery and recycling of ferrous and non-ferrous metals and plastics and has operations in Australia, NZ, the UK and the US (where its presence has been boosted by Hugo Neu and Metal Management). The company is one of the largest recycling operators in the world, sourcing 70% of its earnings base from non-Australian/NZ operations. It also has some representative offices in Asia. More recently, SGM has entered the renewable energy market.

Albert Sims set up Simsmetal (SGM) in 1917 as a Sydney-based metals recycling business. It went public in 1948 and subsequently developed into a substantial business. SGM became part of Peko Wallsend from 1979-1989 when it was sold to Elders Resources NZFP. It was floated in 1991 and in 1992, SGM entered into an agreement with ICI Australia to develop commercial recycling of plastic automotive components. SGM merged Hugo Neu in late-2005 and Metal Management in early-2008.

SGM operates in scrap metal and plastics recovery and processing in Australia, NZ, the US and the UK. More recently, the company has sought to take advantage of end-of-product life requirements being introduced to reduce waste, particularly in Europe. SGM also has a strategic stake in landfill gas extractor and energy company, Landfill Management Services (LMS).

The key factors that differentiate SGM are its scale and the range of markets in which the company operates. Over recent years, the company has undertaken an expansion program and acquired businesses in the US and the UK markets. SGM has also steadily built its presence in the non-ferrous recycling market segments. As a result of its organic and acquisition growth strategies, SGM is now one of the larger recycling operators in the world.

SGM's major clients are steel producers. Scrap is supplied to producers in Australia, the US, Asia and Europe. SGM also operates in other metals markets, including copper, aluminium and lead. There are also a number of smaller operators. In the United Kingdom, SGM is one of two major operators. The Metal Management merger has delivered a huge boost to SGM's US arm, making SGM the market leader.