The News reported that Sims Metal Management SA has increased maximum production capacity by 71% at its Gillman recycling plant with a USD 13 million refurbishment of the site.
90% of the volume at the Gillman site is related to the SMM SA's ferrous business focused on processing scrap metal and goods to supply the local and international markets with fragmented or shredded products for use in the steel industry.
Mr Rod Bonnette GM of SMM SA said that the metal processor was starting to show its age when it decided to undertake a revamp of operations. This redeveloped facility keeps SMM at the forefront of the South Australian scrap metal industry now and into the future.
He added that “Part of what we do is recover metal from residue and a lot of time, money and IP has been spent to refine our processes.''
The site which commenced operations in 1964 has undergone a 2 year transformation to include a shredder upgrade, a new site office, maintenance workshops, weighbridge facility, storage sheds and general site works.
Mr Bonnette said that production capacity has increased 70 tonne per hour to 120 tonne per hour. The net result has been a 38 per cent improvement in production tonnes for the same power use. Along with the anticipated recovery in global markets, revenue and volume is now likely to grow by nearly 25% to 30% in the next 12 to 18 months.
He said that “The global scrap metal industry has seen a tumultuous 2 year period where market prices have soared and then dropped alarmingly and new competition has attempted to usurp SMM's market position particularly in South Australia.''
He added that the company has a fairly deep penetration in the local market with 60% market share and local clients like Hills Industries, Clipsal, Strathco and GM Holden until recently.
Mr Bonnette said that potential relationships include ASC and BHP at Roxby. But most of the focus is on exports to South East Asia due to the lack of adequate steel making operations here.
SMM SA became part of a global entity following Sims merger with US based Metal Management Inc in 2008. Its other South Australian operations include sites at Lonsdale and Roseworthy and have mobile crushing, baling and shearing equipment that services every part of the state.
(Sourced from News.com)
