Sims Limited stated that the deal is a key step towards consolidating its ferrous scrap operations in Houston and reducing its operating cost base. Proceeds from the sale of Mayo Shell assets are expected to significantly finance the acquisition of Tri Coastal Trading assets.
Sims improves access to foreign markets
According to Sims Limited, Tri Coastal Trading supplies more than 350,000 tons of recycled obsolete scrap per year. The central element of the deal is the relocation and consolidation of Sims Houston ferrous metals on the Tri Coastal Trading site. As part of this consolidation, Sims will take over Tri Coastal Trading's existing service agreement with Infrastructure LLC, providing exclusive access to coastal land and a secure deepwater dock located at Galena Park Industrial Estate in Houston.
Sims Limited explained that the consolidation of operations at the facility operated by Enstructure is expected to provide significant savings in operating and administrative costs. The facility will also expand Sims' logistics capabilities by providing search and shipment of scrap by truck, rail, barge, and
