Sims Group Complete Acquisition of Europe’s Leading Electronic and Electrical Goods Recycler

Sims Group Chief Executive, Jeremy Sutcliffe announced today that Sims had completed the acquisition of the Mirec Group of Companies, Europe’s leading electronic and electrical equipment recycler. The Mirec business, which is headquartered in Eindhoven, Holland, operates throughout the Benelux countries, Sweden and the United Kingdom. Mirec recycles and recovers a wide range of electrical, electronic and IT equipment and operates dedicated plants for the recycling of cathode ray tubes from TV and computer monitors and for the ‘asset management’ of reusable equipment and components.

Material is sourced by Mirec under contracts from government and manufacturer sponsored schemes already established in the Benelux countries and in Scandinavia to be compliant with the European Waste and Electronic Equipment (WEEE) Directive, and also under a range of B2B contracts.

Mr Sutcliffe commented “the growth of our Recycling Solutions Division has, thus far, been largely limited to the United Kingdom and has been organic in nature. We are already operating the world’s largest refrigerator recycling facility in the UK. The acquisition of the Mirec Group elevates our Recycling Solutions Division to the status of a meaningful earnings contributor for Sims. Not only is the acquisition consistent with our stated corporate objectives and complementary with our existing UK businesses, it offers a very strong platform for further growth both in the UK, when the WEEE Directive is introduced into local legislation, and also in Australia and North America. Our existing, and newly acquired knowledge in the important areas of WEEE goods recycling and asset management, will be critical in assisting governments and manufacturers in Australia and elsewhere to introduce appropriate legislation and solutions for the ever increasing environmental problem of “end of life” electronic and electrical manufactured goods”.

Mr Sutcliffe added “the Mirec Group will make an immediate positive impact on Group earnings in the second quarter in F2005”.

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