Global metal recycler Sims will close its automotive shredder residue (ASR) recycling division Resource Renewal because scaling the technology was not profitable.
Sims is actively working with a third party on an alternative solution for treating ASR, chief executive and managing director Stephen Mikkelsen said.
ASR is the non-recyclable component of metal shredder output which typically includes plastics, fabrics, insulation, foam, rubber and wood. ASR at present is treated with an organic compound and used as daily cover at landfills or regarded as a waste product and landfilled.
The Australia-based company will take a A$25mn ($16mn) hit from the closure. This includes a closure-related cost of around A$4mn ($2.6mn), as well as a non-cash write-off of A$21mn ($13.4mn) in its fiscal year ending in June 2025.
Sims determined that market conditions did not support continuing the program after successfully building and running a smaller-scale demonstration plant in Queensland, Australia.
The company planned to build 10 Resource Renewal facilities around the world by 2030 to convert ASR generated from its recycling facilities into new products, including hydrogen gas, aggregates for construction materials and building blocks for plastics.
Sims' metal business has divisions in North America, Australia and New Zealand, as well as SA Recycling, a 50/50 joint venture between Sims and Adams Steel.
