Australia-listed metal recycler Sims has announced the sale of its UK Metal business (UKM), consisting of 28 facilities, including three port facilities and four shredders, to Unimetals Group Limited for approximately £195 million ($249m).

Completion remains subject to customary conditions, including obtaining regulatory approvals. The transaction is expected to be completed by end-September, Kallanish notes.

UKM sales volumes represented approximately 14% of the total Sims Metal sales volumes in the fiscal year through June 2024. Going forward, Sims will focus its Metal portfolio on Australia, New Zealand, North America, and its 50% interest in the SA Recycling Joint Venture.

“By focusing on high-potential markets such as the United States, Australia, and New Zealand, where demand for scrap is stronger, we can effectively leverage our strengths and drive sustainable growth,” says Sims chief executive and managing director Stephen Mikkelsen.

In addition to the UKM sale, Sims has signed a letter of intent to sell its remaining 12.4% interest in CLP Circular Services Holdings LLC for approximately $32m. While this final sale tranche will result in the company recognising a loss of AUD 48 million ($31.7m) in fiscal 2024, the overall divestment process, which began in January 2022, has generated a total gain of AUD 56m, with Sims selling its entire interest in Circular Services for approximately AUD 126m.