Global metal recycling firm Sims Metal Management has begun a strategic review of its division Sims Recycling Solutions (SRS).
Under the review, Sims plans to completely close SRS in Canada and will look to sell or close a substantial portion of its loss-making assets in the UK.
In a statement Sims said: “Legislation and market dynamics in the UK and Canada have resulted in these businesses being commercially unattractive to the company going forward. The company will direct its resources instead to other portions of the global businesses that are more attractive as it continues to develop its platform for SRS customer relationships worldwide.”
Sims said that its UK metals operations, fridge recycling and IT asset management solutions are core and therefore not impacted by the restructuring activities.
But this means that activities such as hazardous WEEE recycling, CRT recycling and plastics recycling could be under threat of restructure.
Sims expects to have restructuring charges of $80 to $85 million (£47 million to £50 million) that will be reflected in its second half results for the current financial year.
