Metal Management Ltd. is making progress to reshape its North
American portfolio by shedding nonperforming assets and
investing heavily in areas ripe for export.
Australia-based metals recycler has aggressively tightened its
belt to reduce costs, it has begun to focus on areas that have
the potential to yield strong returns.
The majority of the
companys Australian $149 million ($134.3 million) in
capital investments over the past year included projects
designed to deepen its footprint in New England, an executive
noted during a recent conference call to discuss its financial
"Over the course of
2013 we have continued to advance our strategic agenda of
optimizing the North American portfolio of assets," Sims
chairman Geoffrey Brunsdon said.
Sims expects to open
by December three greenfield projects in Rhode Island that have
been in the works since fall 2011: an auto shredding facility
in Johnston, a nonferrous yard in Fields Point and an export
facility in Providence (
amm.com, Oct. 10, 2011).
Earlier this year,
now-retired chief executive officer Daniel Dienst said Sims was
undertaking actions to direct capital to higher-margin areas
with an emphasis toward water-based facilities, noting that
inland facilities not near exporting avenues tend to produce
lower returns (
amm.com, April 8).
The company has been
shedding noncore or underperforming assets, selling a
Birmingham, Ala., shredding plant as well as facilities in
Arizona and Colorado and a joint venture in Tennessee. Its
aerospace unit also has been sold.