Metal recycling giant Sims has made a “significant” investment in a Chinese recycling firm.
The UK firm acquired 16% of existing shares in Hong Kong metals and electronice recycler Chiho-Tiande Group (CTG) from founding chairman Ankong Fang and Delco Participation BV a Dutch scrap company.
CTG is the largest mixed scrap importer in China, and also operates a foundry business and a wholesale scrap metal brokerage business.
Sim has an option to acquire another 2% and expects to become a 20% shareholder in CTG.
Sims Group chief executive Daniel W Dienst said: “Through our investment and partnership, we are validating not only CTG’s extraordinary growth prospects under the vision of Chairman Fang and his leadership team but, as importantly, the shared cultures of our two companies manifested in unwavering commitments to creation of long-term shareholder wealth, the safety of our valued employees and the health of the environment and communities in which we operate and locate.
“CTG, as a long-standing trusted and honorable trading partner of Sims, made this investment decision that much more compelling.”