Smorgon Steel Group Limited has acquired the remaining 50% of the Smorgon Hartwell Recycling joint venture it does not already own from Hartwell Pacific. Consideration for the transaction is not disclosed but is based on a formula agreed between the parties when the joint venture was formed in August 2003.
Stephen Greer, who founded Hartwell Pacific and has been managing the joint venture since its inception, has joined Smorgon Steel and has been appointed as Chief Executive of Smorgon Hartwell Recycling. Mr. Greer will also be a member of Smorgon Steel's regional recycling strategy board and will report to Shane Grice, Chief Executive, Smorgon Steel Recycling.
In announcing this acquisition, Ray Horsburgh, Managing Director and CEO of Smorgon Steel Group said "Smorgon Hartwell Recycling has become an important part of Smorgon Steel's metal recycling presence in Asia. In the six months ended 31 December 2004, volumes of material collected and processed by Smorgon Hartwell Recycling were more than 40% ahead of the corresponding period in 2003."
He added, "Our recycling strategy covers both ferrous and non-ferrous metals, and this transaction will enable us to accelerate the development of the strategy throughout Asia."
Smorgon Steel's presence in Asia comprises wholly-owned metal recycling operations in Hong Kong, the Philippines, Thailand and Malaysia, and trading offices in China and India.