Sims completes $20M investment in Chesapeake

Sims Metal’s facility in Chesapeake, Va. is getting an upgrade with an eye toward increased efficiency and reduced emissions.

The Australian metals recycler invested $20 million at its Virginia facility, which includes a new fixed shear, a STAR plant for advanced metal separation, and an indoor maintenance facility. The project is expected to be completed between September and November.

“Chesapeake is the first site where we have introduced a STAR plant, which is a groundbreaking innovation that uses advanced technology to separate metal particles as small as a grain of sand, significantly minimizing landfill waste and extending the lifespan of valuable metal resources,” said Michael Henderson Jr., chief operating officer, North America.

The largest upgrade is the 2,000-ton fixed shear, which can cut steel up to eight inches thick. The fixed shear will eliminate several diesel-powered shears and reduce the need for torch-cutting materials.

Chesapeake, the largest Sims facility in Virginia with more than 180 employees, recycles a range of ferrous and non-ferrous discarded metals including large shipping containers, damaged ship parts, end-of-life vehicles, and end-of-life household appliances. In fact, the facility supported the removal of damaged infrastructure and shipping containers to enable the reopening of the Port of Baltimore following the Francis Scott Key Bridge collapse in March, Henderson said.

The metals processed at Chesapeake are sold to customers such as steel manufacturers and aluminum and copper smelting operators.

“By enabling them to use recycled metals in place of virgin materials, we help to reduce the emissions intensity of the products our customers manufacture, as well as create more reliable local supply chains,” Henderson said.

In its fiscal year 2024 report in August, the company said it would target its North American Metal operations, particularly acquiring more unprocessed recycled metals, as it looks to improve its margins and lower its risk when the buy-sell spread tightens, in addition to improving its domestic sales channels. Sims said it had been a challenging year for metals, leading it to cut costs, slash its dividend, and reduce its leadership headcount by 206.

Sims says it is banking on decarbonization efforts and the growth of electric arc furnaces to continue to drive North American demand for scrap.

The company has operations in Australia, New Zealand and the United States. In North America, it operates more than 70 facilities.