Neu Corporation merges operations with Sims Group and creates
recycling division to handle post-consumer materials
New York, NY— Hugo Neu Corporation
(HNC) announced that it has merged its operations with Sims Group
Limited, one of the largest recycling companies in the world.
The U.S. operations of the combined
company will be known as Sims Hugo Neu Company LLC, and will be
the largest exporter of scrap steel, and one of the largest recycling
companies in the U.S.
Under the terms of the agreement,
which was announced in Sydney, Australia, existing Sims Group
shareholders will receive a 74% interest in the new Sims Group
company, while Hugo Neu Corporation will hold a 26% interest and
become the largest single shareholder worldwide. The merger values
Hugo Neu Corporation at approximately USD $500 million (AUS $650
Sims Group Chief Executive Jeremy
Sutcliffe will become chairman of the U.S. division, Sims Hugo
Neu Company LLC, while former Hugo Neu Corporation chairman John
L. Neu will serve as vice chairman of the U.S. operations. John
Neu will also be appointed vice chairman of Sims Group worldwide.
Donald W. Hamaker, current president
of Hugo Neu Corporation, will become chief executive officer of
the combined U.S. operations. Rick Jansen (Sims USA’s current
president) will be president and COO for the combined businesses.
Jeffrey P. Neu will remain as general manager of Sims Hugo Neu
Company’s Los Angeles operation.
The company will also create
a new division—Hugo Neu Recycling —to oversee post-consumer
recycling, including the management of the landmark New York City
recycling contract. John Neu will become chairman of Hugo Neu
Recycling, while Robert Kelman will continue as the executive
in charge of the division.
The merger with Sims Group is
the latest move by Hugo Neu Corporation to fulfill its vision
of evolving into a global company dedicated to developing new
markets and new opportunities in recycling, both of ferrous and
non-ferrous metals, and of other non-metallic recyclables including
plastic, glass and other post-consumer materials.
On June 9, 2005, Hugo Neu Corporation
announced that it had ended its joint venture operations with
Schnitzer Steel Industries (SSI). Under the terms of that agreement,
HNC and SSI agreed to split its joint ventures, with HNC gaining
100 percent ownership of former joint venture operations in the
two largest metropolitan areas in the United States—the
New York City metropolitan area, and Los Angeles—among other
The separation of the SSI joint
ventures paves the way for merger with Sims Group, which is expected
to be completed by the end of the year.
The combined operations of the
North American company Sims Hugo Neu Company LLC, will have operations
in New York, New Jersey, California, Virginia, Connecticut, Arizona
and Canada and will be the largest exporter of recycled metal
from both the East and West coasts of the U.S. Earnings from Sims
Hugo Neu Company LLC (including current Sims USA) are expected
to represent approximately 60% of the Sims Groups earnings worldwide.