Sims to acquire Pacific Metals shares for NZ$ 42 million

New Zealand firm Fletcher Building is selling its stake in metal recycling company Sims Pacific Metals for NZ$ 42 million. The decision is based on its new strategy to focus on its core business.

Fletcher Building will sell the half-share to its partner in the Sims Pacific joint venture, Sims Metals Management. Total proceeds are expected to be between NZ$ 55 million and NZ$ 60 million. Fletcher counts as a major investor in local manufacturing in New Zealand, investing upwards of NZ 400 million in the last five years alone.

Major recycling presence

The joint venture was established in 1992 and is New Zealand’s largest metal recycling company, processing over 350 000 tonnes of metal scrap each year. It currently operates nine recycling facilities across the country, including two metal shredders, and employs more than 170 workers.

ASX-listed Sims said in a separate statement the deal will immediately add to earnings in the 2019 financial year. Group chief executive Alistair Field comments: ‘The acquisition is consistent with a key strategy of disciplined growth through complementary acquisitions in our core markets.’

Certification in South Africa

Meanwhile, Sims recently became ‘the first and only business’ in South Africa to achieve the Responsible Recycling (R2) certification at its e-waste recycling site in Ballito.

‘Achieving the R2 certification at our Ballito electronic waste recycling site raises the bar for WEEE-treatment companies in South Africa,’ according to Marc Affüpper, director of SRS, EMEA. ‘It shows our commitment to recycling end-of-life electronic equipment in the South African market,’ he adds.  

As the first organisation to hold this certification in this region, Sims believes it is going to help it further establish ‘global criteria’ of operational standards.  

Sims Recycling Solutions now owns over 50 sites globally, processing over 735 000 tonnes of IT and unwanted electronics annually.