NEW YORK Sims
Metal Management Ltd. is reportedly in deals
to divest its aerospace division and two scrap facilities
in the South and has reduced its workforce in the region,
sources familiar with the situation confirmed.
AMM that Sims is selling Hartford, Conn.-based Sims
Metal Management Aerospace Inc. to ELG Haniel GmbH, Duisburg,
In addition, sources
said Sims is selling a scrap facility in Birmingham, Ala., and
one in West Point, Miss., to a newly formed company called
Steel City Recyclers. AMM had reported previously that
Waterloo, Ind.-based MetalX LLC and Birmingham, Ala.-based
Jefferson Iron & Metal Brokerage Inc. were rumored to be
involved in the acquisition of both Sims facilities (
amm.com, April 8).
A Sims spokesman said
mid-day Friday the company had no announcements with respect to
any transactions or personnel at this time. Late Friday, after
the story's publication, a spokesman for the
company e-mailed AMM to deny reports of an asset
"Sims Metal Management Ltd. has not divested its aerospace
division and two scrap facilities in the South. As to the rest
of the article we continue to have no comment on the accuracy
or inaccuracy of the statements regarding personnel or
corporate organizational matters," the spokesman said.
MetalX, Jefferson and ELG did not respond to requests for
But while Sims has
since denied the reported moves, according to one well-placed
source, the sale to ELG was completed June 24 and an official
announcement is imminent.
president of Sims Aerospace until the asset sale, is no longer
with the company, several sources said. It was not immediately
clear who Nathans replacement will be.
In addition to the
reported aerospace and scrap facility divestments, sources said
Sims also reduced its workforce in Louisiana to five personnel
this past week, letting go three employees, reportedly among
them Jeff Maynard, a senior marketing executive at the
The company intends to
consolidate its Gulf and South regional operations, said a
second source familiar with the developments.
Brian Souza, a senior
executive at the companys Gulf region operations, has
resigned, sources said.
In February, Sims
posted a net loss of Australian $295.5 million ($304.58
million) for its fiscal first half ended Dec. 31 on revenue
that declined 25.2 percent to A$3.43 billion ($3.53 billion)
compared with a year earlier due primarily to a reduction of
intake and shipments in North America (
amm.com, Feb. 22).
officer Daniel W. Dienst, who was set to retire from his role
at the end of June, said at the time that the company would
continue to look at ways to streamline its operations.
implementation of proactive source control, a challenging set
of global economic conditions, weaker metals prices, tentative
demand for the majority of the period and the impact of adverse
significant items resulted in a statutory loss. We are not
satisfied with this result and continue our efforts to
streamline our North America metals operations," Dienst said in
"Through further reduction in controllable costs and the
potential monetization of a few residual noncore and
underperforming assets, we have now increased our targeted cost
savings to $6 million per month in the second half of fiscal
2013, leading to a total annualized controllable cost reduction
run rate of circa $70 million by the end of fiscal 2013," he