Sims Metal Management UK (SMM UK or Sims) informed clients that the company has suspended all external deliveries and collections of ferrous and non-ferrous materials at all of their UK operations with effect Tuesday evening.
The company estimates operations will be suspended for an initial three-week period due to the impact of COVID-19 outbreak it said in an email sent to clients on Tuesday.
Sims generated and sold 1.6mn mt of recyclable material in 2019. The company has 40 metals recycling sites and a staff of 761 employees, according to their latest operational results. Sims’ UK operations have experienced a challenging operating environment even before the virus outbreak. In H12020 (first half ended Dec 31) Sims’ sales volumes plunged 16.4pc to 663,000mt compared to H12019, while margins turned negative to -5.8pc compared to 1.2pc in H12019.
In February, Sims stated that the company intended to close 11 locations across the UK to consolidate volumes into four multi-functional sites to reduce operating costs.