End of the road for Unimetals

UK-based metals recycler Unimetals Recycling has filed for compulsory liquidation following its acquisition of the UK operations of Sims Metal. 

The company was unable to complete outstanding payments on the deal amid funding shortfalls and the withdrawal of a key investor. It has around 650 employees at dozens of sites in the UK.

Distressing

A spokesperson said: ‘We have today filed a petition for the compulsory liquidation of Unimetals Recycling (UK) Ltd. We recognise how distressing this news will be for everyone connected to Unimetals Recycling (UK) Ltd, particularly our employees who have worked tirelessly over the last year since we acquired it from Sims to try to turn this business around. Their dedication, skill and resilience are the backbone of this business.

‘Our priority now is to work closely with all stakeholders including employees, suppliers, customers, creditors and our regulators to ensure that the liquidation process is managed safely, responsibly and transparently. We are working urgently to agree on a clear plan and timeline for what happens next.’

Payment failure

In August 2024, Unimetals agreed to buy all 28 of Sims Metal sites in the UK, including port facilities and shredders, in a £195 million (EUR 220 million) transaction. However, the company failed to meet its final instalment (estimated at between £35 million and £55 million). 

It attempted to restructure and recapitalise but in October filed a ‘notice of intention’ to appoint administrators, a formal step towards insolvency protection in the UK. A second notice was published in early November.

Reaction Susie Burrage

BIR president Susie Burrage says on Linkedin: ‘My heart goes out to all the hardworking Unimetals employees who are facing job losses at this time, just weeks before Christmas. I truly believe in their incredible talents, and I have no doubt they will find new opportunities soon – any organisation in or out of the metal recycling sector will be lucky to have them.’