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Sims Metal Management Limited (ASX: SGM) has presented its strategic growth plan in which the metal recycler and emerging e-recycling and renewable energy leader mentioned about the previous investor strategy presentation, which the company presented on 8th April 2019 and 9th April 2019 respectively. The company unveiled its businesses and multi-year strategic growth plan.
The companyâs executive leadership team shared its growth plans through 2025.
As per the Chief Executive Officer and Managing Director, Alistair Field, the company is firmly positioned to become a global leader and is acting responsibly towards the environment through its recycling business. The one such solution to address the environmental concerns is the companyâs e-recycling business and production of energy from waste.
Mr. Field addressed opportunities for growth in the companyâs existing metals business, where the company mentioned about Chinaâs import of secondary metals and their smelting activities along with the demand for recycled copper and aluminium.
Apart from its business in China, the company also suggested few plans to reduce its dependency on China for the business. Sims mentioned about the alternative market where metal get processed before reaching China, and the company observed that the dismantling capacity outside of China is increasing in Asia. Sims also observed and mentioned about the contingency plans adopting by many companies to counter the Category 6 quote reduction; in case, China decides to reduce the quotes on the Category 6 metals.
The company also presented the demand scenario of the recycled copper and copper ore, which as per the company is expected to be greater than 12 million tonnes by 2035 amid electrification in the automotive industry (electric vehicle). Not just the recycled copper, Sims also touched upon the demand side of recycled aluminium, which as per the company, is expected to grow in next 5 to 10 years.
Simsâ purpose is a create a world, where there is no waste, to preserve the planet and the purpose of the company will serve as the focus for what the company plans to achieve. The company highlighted its plans for its different business previously; some of the goals for those businesses is as follows:
In the Metal sector, the companyâs objective is to lead the metal recycling, and the company aims to double the non-ferrous business and grow the ferrous business by 40% in the U.S. market within 6 years.
In the E-recycling business, the companyâs objective is to expand the services and become a leading e-recycler of data storage centers known as the clouds. Sims aims to recycle 10% of the cloud over in 6 years.
In Municipal recycling, Sims aims to secure large city municipal contracts by 2025.
The business of the company which is currently dealing with the new goal of producing energy from metal residues is its Waste-to-Energy business and Sims intends to install and operate 7 plants with the aim of zero waste disposal within 10 years.
Sims presented its aim, goals, vision, and strategy for the future in the investor strategy day presentation.
The stock of the company was trading at A$10.550 by the close of market trading on 10th April 2019, down by 4.1% as compared to its previous close.
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