More than 650 jobs at risk as scrap metals giant files for liquidation | Business

More than 650 workers face being made redundant after scrap metal group Unimetals filed for compulsory liquidation.

The owners of Unimetals Recycling (UK) filed for liquidation of the company on Monday, after failing to find a buyer.

The scrap metal industry generates billions of euros in revenue each year by recycling metals such as steel, aluminum and copper, which can be transformed into new products.

The move to electric arc furnaces that melt recycled steel has given new hope for the sector’s long-term prospects.

Unimetals was founded in 2023 by Jamie Afnaim and Alec Sellem, two metals traders, according to information provided by the British company. On a social media profile, Sellem described the group’s goal of buying metal recycling and processing companies, with a particular focus on critical minerals and those needed for the transition away from fossil fuels.

The pair agreed in October 2024 to buy the UK sites from Australian metals company Sims for £195 million, but failed to turn things around. The assets included four metal crushers and three port facilities, among its 27 sites in the UK, headquartered in Stratford-upon-Avon.

However, Unimetals struggled earlier this year as oversupply of scrap metal and steel exceeded demand, pushing prices down. Sims allowed him to delay final payment, but Unimetals could not raise the money.

Under Sims’ ownership, the company lost £22 million in the year to June 2023, the last for which it published accounts. In recent weeks, Unimetals has filed three notices of intention to appoint administrators, ahead of the liquidation application.

A Unimetals spokesperson said: “We have worked tirelessly to explore all possible options to secure new financing for Unimetals Recycling, with the aim of meeting our financial obligations and safeguarding the future of the business.

“This included an accelerated mergers and acquisitions process, supported by our advisors and undertaken in full collaboration with stakeholders, to identify potential buyers or investors.

“Unfortunately, despite considerable interest and attempts to reach an agreement, no transaction has been completed.”

The spokesperson acknowledged it would be a difficult time for employees. The group said it was “working urgently to agree a clear plan and timetable for moving forward.”

Alvarez & Marsal, a professional services firm, is handling discussions about the company’s future, according to Sky News.

Unimetals also has a hydrometallurgical facility in Kezad, near Abu Dhabi Port.