Australian Steel Company Acquires Scrap Recycler

Smorgon Steel Group Ltd. has acquired JS Hollingworth Pty Ltd for a consideration of $1.45 million. JSH operates two scrap metal yards in New South Wales, handling about 8,500 metric tons of of ferrous scrap and 800 metric tons of non-ferrous scrap a year. JSH also operates a glass and plastics recycling business from these locations.

Ray Horsburgh, managing director and CEO of Smorgon Steel Group said ”The acquisition of the JSH business is another small bolt-on acquisition, consistent with the approach we have previously announced to the market. This acquisition effectively completes our coverage of the New South Wales scrap market and complements our strategy of upgrading our shredder capacity by securing additional feed material.”

“We have had a relationship with JSH as a supplier of material to us for some time and, through this acquisition, will have access to all the material JSH collects”, said Shane Grice, chief executive of Smorgon Steel Group’s Recycling Division. ”JSH is a well-established business, having operated in Nowra for 62 years and Goulburn for 38 years. It is a profitable business and will add to our bottom line from day one”, added Grice.

The acquisition follows the company’s announcement last month of the acquisition of a Hong Kong-based scrap recycling company.