Australian-based company seeks first mover advantage in China.
Smorgon Steel Group, based in Australia, is looking to expand its scrap metal operations in China. According to reports the company, which produces steel as well as performs scrap metal processing and recycling, plans on investing as much as $60 million on scrap metal operations this year.
Ray Horsburgh, Smorgon’s chief executive, said the growth of the consumer culture in China and other emerging countries means scrap metal demand, especially in Asia, will be very strong into the future.
'We now have a substantial metal recycling footprint in Asia and a platform for future growth in that part of the world with the fastest growing appetite for scrap metal,' Horsburgh said.
According to published reports Horsburgh said no other foreign companies yet had a footprint in the (China) market and Smorgon planned to get in first by buying an existing operation this financial year.
"The first in, in those sort of businesses, gets a break on the rest of the market," he told journalists after the company's annual general meeting.