Sims Metal Management Ltd. said it is streamlining its Sims Recycling Solutions (SRS) unit by shedding its Canadian operations and much of its United Kingdom business.
The Sydney-based company said it has determined “certain loss-making assets to be outside of the strategic long-term interests of the company,” according to a news release.
“Market dynamics in the U.K. and Canada have resulted in these businesses being commercially unattractive to the company going forward. The company will redirect its capital and resources instead to other portions of the global businesses that are more attractive as it continues to develop its platform for SRS customer relationships worldwide.”
Sims expects to incur restructuring charges of about $80 million to $85 million, of which the non-cash portion relates primarily to fixed asset impairment and is about $35 million. The restructuring charges will impact the company second-half results of 2014.