Unimetals' takeover in the balance
29/10/2025
Unimetals’ £195 Million Purchase of Sims Metal UK in Turmoil and What It Means for the UK Metal Recycling Industry
Introduction
A year after one of the UK’s largest metal recycling transactions was announced, the future of the deal now hangs in the balance. In August 2024, Sims Limited agreed to sell its UK metals business, including 28 facilities nationwide, to Unimetals Recycling Ltd. for approximately £195 million.
The sale was a key step in Sims’ global restructuring, allowing the company to focus on higher-growth regions such as the US and Australia. But as of October 2025, Unimetals has filed a notice of intention to appoint administrators, raising serious questions about the stability of the UK recycling landscape.
What Happened
The acquisition included Sims’ UK Metals division (UKM), representing around 14 % of Sims’ total global metal sales volume in FY24.
Sims stated the divestment would simplify operations and sharpen focus on markets offering stronger margins. The deal was finalised in late 2024, but according to reports, Unimetals has not yet made the final payment, believed to be between £35 million and £55 million.
Sims confirmed that it “has had no involvement in the operations of the business since the sale” and now lists the unpaid amount as a receivable on its balance sheet.
Sources:
Recycling Today – Sims Ltd to sell UK metals business
Lets Recycle – Unimetals acquires Sims UK Metals business in £195m deal
Recycling International – Unimetals takeover in the balance
Argus Media – Unimetals’ deal stalls over funding
Implications for UK Metal Recycling
1. Market Uncertainty
The potential collapse of this acquisition could disrupt scrap flows across the UK. Sims’ network handled significant ferrous and non-ferrous volumes; instability here could affect availability, pricing, and competition for raw material.
2. Opportunities Amid Disruption
If Unimetals enters administration, assets could be acquired by other recyclers or investors. This presents an opportunity for operational renewal and the potential modernisation of older sites, particularly through investment in new separation and recovery technologies.
3. Pressure on Margins and Investment
Financial distress at such a scale shows how volatile the sector has become. Many UK recyclers face tight margins, uncertain feedstock supply and growing regulatory obligations. Access to capital for equipment upgrades may become more difficult, yet the need for reliable, efficient recovery systems has never been greater.
4. Reinforcing the Case for Efficiency and Clean Recovery
As competition intensifies, businesses that can recover more value from complex streams, such as wire-rich waste or mixed metals, will stand out. Systems that maximise yield and purity, while reducing labour and downtime, will be central to long-term competitiveness.
Looking Ahead
Whether Unimetals successfully restructures or assets revert to Sims (or a new buyer), this episode is a stark reminder of how quickly market dynamics can shift. The UK metal recycling sector is under mounting pressure to modernise, automate and adapt.
For companies supplying technology, such as eddy current separators and density-based systems, the message is clear: the demand for cleaner, more efficient recovery will continue to grow, regardless of who owns the processing sites.
Author’s note:
This article references reporting from Recycling Today, LetsRecycle, Recycling International and Argus Media.
