Global metal recycling giant Sims Metal Management (Sims MM) has bought a 16 per cent stake in Hong Kong-based scrap metal business Chiho-Tiande Group (CTG).
Sims MM has spent £63 million on the investment that will give it a foothold in China. It also agreed on a range of convertible bonds that could lead to Sims owning 20 per cent of CTG.
CTG chairman Ankong Fang said: “As the largest mixed metal scrap importer and processor in China, we are always exploring opportunities to grow, both within China and worldwide. Sims MM has been one of our major suppliers for a number of years and, given Sims MM’s global reach and customer network, advanced technologies and solutions in the metals and electronics recycling industry, the proposed strategic collaboration with Sims MM will add significant value and expertise and complements our group.”
Sims MM group chief executive Daniel Dienst said: “After several years of earnest evaluation of opportunities to enter the physical recycling arena on mainland China and in Hong Kong, we have identified CTG as among the most exciting and attractive companies that will define and shape the nascent Chinese recycling landscape.
“Through our investment and partnership, we are validating not only CTG’s extraordinary growth prospects under chairman Fang and his leadership team but, as importantly, the shared cultures of our two companies manifested in unwavering commitments to creation of long-term shareholder wealth, the safety of our valued employees and the health of the environment and communities in which we operate and locate. CTG, as a long-standing trusted and honourable trading partner of Sims MM, made this investment decision that much more compelling.”