Sims Group Announces More Deals

Sims Group, the largest metal recycling firm in the world, has announced several deals that it hopes will continue to grow its metals business.

In the first deal Sims has announced the acquisition of Cymru Metals Recycling, South Wales, UK, a ferrous and nonferrous metals recycling facility. The acquired company handles more than 150,000 metric tons of metal a year. The acquisition follows Sims’ goal of growing its metals recycling business in fast growing areas. The company says that the most recent purchase will compliment Sims Group’s scrap recycling network in the United Kingdom.

Cymru Metals operates from several facilities, including direct export capabilities. Additionally, Cymru is an authorized treatment facility for end-of-life vehicles, and handles around 50,000 vehicles a year.

The acquisition of Cymru Metals Recycling expands Sims’ presence into West Wales and strengthens our position as a leading UK metal recycler. Cymru Metals Recycling

will make a significant contribution to the ongoing development of our UK business," said Tom Bird, managing director of Sims Group UK’s Metal Recycling Division.

Sims also has announced plans to acquire Menzies Metals, located in the Melbourne, Australia area. Menzies has been operating in the area for 50 years.

Darron McGree, managing director of Sims Group Australia & New Zealand noted, "This acquisition, expected to complete early in the New Year, significantly strengthens Sims Group’s catchment in the area and allows us to offer a greater range of services to our regional customer base."

Finally, the company also announced that it has completed the acquisition of Maroochy Steel, a steel distribution business servicing the coastal area of Queensland.

McGree said, "Maroochy Steel has experienced strong growth and the acquisition will greatly enhance Sims Steel’s ability to deliver a wider range of stock lines and service to the area."

In addition, delivering on its strategy of increased direct regional servicing, Sims Group Australia also is building a metals recycling facility in Maroochydore. The site has all approvals in place and expects to be operating during the second half of fiscal 2007.

"The synergies between the distribution and metals recycling businesses are expected to deliver strong regional growth to both divisions" said McGree.

Jeremy Sutcliffe, Sims Group’s CEO, noted that work on certain targeted acquisitions by the Company’s Recycling Solutions Division is well advanced and a further commentary will be provided at the appropriate time.