PITTSBURGH Sims Metal
Management Ltd. group chief executive officer Daniel W. Dienst
has announced he will retire from the worlds largest
metal recycler and resign from the companys board of
directors when his contract expires June 30.
The Sydney-based company
hasnt turned a profit since fiscal 2011 and has been
dealt a host of other challenges. Sims auto shredder
facility at Port of Redwood City, Calif., has come under
scrutiny from the Environmental Protection Agency (
amm.com, Jan. 10, 2012), and the company more
recently took a write-down of Australian $78 million ($80.5
million) on its British inventory following an investigation
into the overvaluation of inventory at two scrap facilities (
amm.com, Feb. 15).
Dienst is the man who integrated
the purchase of Hugo Neu Corp. into Metal Management Ltd. in
2007 and was a key player in the 2008 marriage between Metal
Management and Sims Group Ltd. (
amm.com, Nov. 1, 2007).
Dienst, a former managing
director at New York-based CIBC World Markets Corp., arrived at
Metal Management before the merger as a member of its board of
amm.com, Sept. 19, 2002) and served as chairman of
Fort Lauderdale, Fla.-based Metals USA Inc. (
amm.com, Nov. 17, 2002).
"The board would like to
acknowledge the enormous contributions Mr. Dienst has made to
the company ... including the integration of Metal Management
and Hugo Neu and the establishment of the companys
beachhead in the mainland Chinese market," Sims chairman Geoff
Dienst made it clear he is
ambivalent about his exodus.
"I make this decision with mixed
emotions; it has been a rare privilege to lead such a dedicated
group," he said in a statement. "After nine years as chief
executive officer, I believe now is the right time to bring the
next leader into the organization."
As the board begins its search
internally and globally for a replacement, Dienst plans to
spearhead any changes needed in its British operations, reduce
operating costs and exit nonperforming areas.