Sims Metal Management has reported a 28% fall in sales revenue, with the company looking to close 25 facilities worldwide during 2016.
The company’s half-yearly result revealed the ongoing impact of cheap metal imports from China.
Sims’ earnings before interest and tax in the company’s European division fell from AUS$15 (£7.5m) in the first half of the 2015 financial year to just AUS$2m in the same period for 2016.
A statement said: “Europe Metals was challenged by an 18% fall in volumes and deterioration in the domestic UK steel industry.”
The 25 facilities to be either sold off or closed are mainly in North America, the company said.
The company announced a loss on its overall statutory net profit after tax of AUS$250.1m. Group chief executive Galdino Claro said the company had faced “substantial market headwinds”.
“Overcapacity of steel production in China, coupled with declining Chinese domestic demand, has pushed exported steel into the markets of many of the Group’s traditional customers. This has significantly depressed demand for ferrous scrap metal globally,” he added.
Last year Sims announced it would be closing underperforming facilities due to falling commodity prices.
The UK steel industry has been lobbying against ‘dumping’ of cheap Chinese steel on UK markets.
A crash in steel prices has already claimed more than 4,000 jobs, with closures or significant cutbacks having been made at SSI’s Redcar plant and Tata Steel’s facilities in Scunthrope, Scotland and Wales.
In 2014 Sims closed its Newport WEEE plant, run by subsidiary Sims Recycling Solutions.