Sims Group Sells SoCal Recycling Operations

Sims Group Ltd. has sold its Southern Californian metal recycling operations to Pacific Coast Recycling LLC for an undisclosed sum. PCR is a wholly owned subsidiary of Mitsui Corporation of Japan.

Jeremy Sutcliffe, Sims’ group chief executive, said, “Our Southern Californian business is land locked without an export option, whereas PCR operates a deep sea facility in Los Angeles and so the acquisition is a logical fit for them”.

The company noted that it marginally exceeded the net book value of the assets, after allowing for the release of provisions held specifically in respect of these operations.

Sutcliffe concluded that “given the division’s performance to-date, the sale will have a positive impact on earnings during the remainder of the fiscal year as well as releasing cash for utilization on other projects”.

Sims Group’s core business is metal recycling, with an emerging business in recycling services.

Sims Group, headquartered in Australia, has operations in Australia, the UK, North America, New Zealand, and Asia.

The company is one of the largest scrap metal recycling companies in the world. In addition to facilities in California, Sims has operations throughout the West Coast, as well several other facilities in both the U.S. and Canada.

Sims operates more than a half dozen recycling facilities in the United States.

Pacific Coast Recycling also operates a number of facilities in southern California, including a facility located at the Port of Long Beach, Calif.