SITA UK Considers Shuttering Metals Recycling Division

Recycling and waste management company is carrying out a formal review regarding the future of its metals recycling division.

July 3, 2013
RTGE Staff
Ferrous Legislation & Regulations Nonferrous
SITA UK has announced that it will be undergoing a 45-day consultation period to decide whether or not to close the company’s seven metals processing facilities in the United Kingdom.

According to SITA UK, the review of its metals recycling division follows difficult trading conditions within the metals recycling market, which have persisted for several years. Trading conditions have been worsened by the decline nationally and globally in both demand and the pricing of metals within commodities markets. Combined, the seven facilities process around 500,000 metric tons of ferrous and nonferrous scrap per year. The company also operates one 2,500 horsepower shredder.

David Palmer-Jones, SITA UK’s CEO, says, “We have built up an excellent metals recycling team and service for our customers, which has led the way in setting industry standards within metals recycling, making today’s announcement all the more difficult. We have decided to launch this formal review, however, following years of difficult trading conditions and no sign of improvement in the medium term.

“Although within the metals recycling division we will stop accepting metals at the gate, we will continue to collect all the skips that remain at our customers’ premises and we will process the metals we collect from them as normal.  We will be contacting all our metals customers over the coming days. 
“We will review the feedback we receive during the consultation process over the next 45 days and a formal decision will be made about the future of our metals recycling decision in late August.

"In the meantime, SITA UK’s core business, involving the management and delivery of recycling and waste management contracts in the public and private sectors, continues to trade strongly,” Palmer-Jones adds.

The seven U.K. locations are found in North Tyneside, Boreham, Lenwade, Norwich, Hayes, Sheffield and Coventry. A spokesman for the company says that during the consultation period SITA UK will consider both closing and selling off the metals recycling assets.