NEW YORK Sims Metal Management Ltd. expects to complete its expansion in New England by year-end.
In an annual report filed Oct. 16 for its fiscal year ended June 30, the New York-based company provided details on projects in Rhode Island and New York and outlined its capital expenditure targets for its 2014 financial year.
The company said it intends to complete by Dec. 31 the development of a New England metals recycling footprint, with a greenfield yard, shredder and export facility in Rhode Island. It also anticipates completing stage one of its New York City municipal recycling project.
Outside the United States, the company intends to make significant investments in a new shredding operation in Western Australia, the construction of which will take about two years, and expand a facility in New South Wales, Australia.
Despite these projects, the company aims to drastically reduce its capital expenditures in its current fiscal year to an estimated Australian $80 million ($76.2 million), nearly half its capital expenditures of A$149 million in 2013. Sims said it expects to fund its 2014 expenditures from cash generated from operations or from its lines of credit.
Sims major capital expenditures in the United States in 2013 related to the build out of facilities in New England, outlays for its New York municipal recycling facility and expenditures related to asset acquisitions in the Gulf region, and also included the purchase of capital equipment in connection with the acquisition of E-Structors Inc. by its e-recycling division.
In Australia, the company said its main capital expenditures were for a capital upgrade of the St. Marys yard in New South Wales and the installation of a downstream nonferrous extraction facility in Victoria.
The company, which invested A$216.1 million and acquired 32 companies from July 1, 2010, to June 30, 2013, said it has no acquisitions in the pipeline.
Sims invested A$93.5 million in the past three years to acquire a 16-percent stake in Chiho-Tiande Group Ltd., a major Chinese recycler. The deal gave the company an opportunity to increase its ownership stake to 20 percent through options, warrants and a convertible bond. Sims paid A$37.8 million for the convertible bond issued by Chiho-Tiande.