Smorgon Takes Position with Thai Recycler

Smorgon Steel Group, which is set to merge with OneSteel Ltd., is acquiring a 20 percent stake in Suntech Metals Co., a Thailand-based subsidiary of metal recycling company Suntech Group. Smorgon is based in Australia.

The deal will see Smorgon take day-to-day operational control over Suntech Metals' operations and trading activities.

Smorgon said the acquisition would complement the presence it already had in Thailand, which currently consumes about five million metric tons of ferrous scrap per year, 40 percent of which is generated domestically.

"Although Suntech Metals handles only minimal amounts of non-ferrous material, it will complement the existing presence in Thailand of Smorgon Hartwell Recycling, which is an active participant in both the non-ferrous and stainless steel scrap markets," the company said. Suntech handles around 170,000 metric tons of ferrous scrap a year.

Suntech Metals is located adjacent to several major steel-making operations and major deep-water port facilities. Suntech Metals' processing equipment includes a 3,000 hp shredder and 2 x 1,000 metric ton shears. The business employs in excess of 100 people.

Smorgon Steel also announced that it has acquired a lease over land in Darwin, NT, on which it will establish a metal recycling facility. This facility is expected to open by the end of this summer.

The company also is leasing a four acre site in Auckland, New Zealand and has commenced construction of a metal recycling yard. This facility, which will open in August and reach full operation by October, will collect both ferrous and non-ferrous scrap metal.

Finally, the company has opened an additional Asian trading office in Hanoi, Vietnam. The new office adds to Smorgon Steel's existing network of trading offices in China, India, New Zealand and the United Kingdom.