25 September 2007 – While everyone knows recycling is great for the environment it seems it’s also great for business too. Sims Group, based in Australia, is on the acquisitions trail and is set to purchase US company Metal Management for $1.6bn.
The purchase is in support of Sims growth strategy for it’s metal recycling division, and follows several years of acquisitions.
Sims creates “economic recycling processes for industrial and consumer end-of-life products.” The company has benefited from the recent costs of iron ore as manufacturing looks to alternate sources of supply. The significant benefit for manufacturing is cost. As a rule recovered materials are more cost effective than new materials.
Recycling is big business and the new company looks set to have sales in the region of $7bn per annum. Sims currently aquires 70% of it’s revenue from global sales – pointing towards growth in a global industry. Sims may also be benefiting from the push in consumer demand as consumers request products that are environmentally sound.