(Reuters) - Metals and electronics recycler Sims Metal Management (SGM.AX) said on Wednesday it plans to build up its metals recycling business and secure municipal recycling contracts in the United States as part of plans to drive growth through 2025.
Sims, a major seller of scrap metals to China, aims to nearly double its U.S. base metals recycling business within six years and grow its U.S. steel business by 40 percent, it said in a statement to the Australian Stock Exchange.
China has cracked down on foreign waste imports due to environmental concerns, upending the global recycling industry and leaving household waste in western countries such as Australia piling up or being sent to landfill.
Sims said it was also looking to expand into the ‘waste-to-energy’ sector, and aims to build seven plants that can capture energy from non metallic elements in its shredding process to generate electricity.
Sims shares were trading down 2.9 percent by early afternoon in a slightly firmer broader market , falling for a third session to touch a two-week low.
Reporting by Devika Syamnath in Bengaluru; additional reporting by Melanie Burton in Melbourne; editing by Richard Pullin