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Weak metals market prompts Sita to consider closures

Sita is reviewing the future of metals recycling operation at its seven processing sites in England, saying there is no sign of improvement in the market.

The company is no longer accepting metal at the gate, dealing only with consignments in customers’ premises.

A 45-day consultation period for staff at the sites has been launched with all being told they are at risk of redundancy. The sites are at North Tyneside, Boreham, Lenwade, Norwich, Hayes, Sheffield and Coventry.

The company blames difficult trading conditions within the metals recycling market for several years. Trading conditions have been hit by a decline nationally and globally in both demand and the pricing of metals within commodities markets.

David Palmer-Jones SITA

Chief executive David Palmer-Jones, left, said: “We have built up an excellent metals recycling team and service for our customers which has led the way in setting industry standards within metals recycling, making today’s announcement all the more difficult.

“We have decided to launch this formal review, however, following years of difficult trading conditions and no sign of improvement in the medium term.

Palmer-Jones said Sita will stop accepting metals at the gate but will continue to collect skips from customers’ premises and will process that material as normal.

“We will review the feedback we receive during the consultation process over the next 45 days and a formal decision will be made about the future of our metals recycling decision in late August.

“In the meantime SITA UK’s core business, involving the management and delivery of recycling and waste management contracts in the public and private sectors, continues to trade strongly,” he said.

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