Hi allHere is the article that Kapo was talking about from steel...

Hi all


Here is the article that Kapo was talking about from steel Guru news.


Sims Metal Management makes a 20pct strategic investment in Chiho Tiande Group


19 Jan 2012


Sims Metal Management Limited announced that it has made a significant minority investment in Chiho Tiande Group Limited, a Hong Kong listed and fast growing metals and electronics recycler with operations in the People's Republic of China and Hong Kong.

With main processing facilities in Taizhou and Ningbo, CTG is the largest mixed scrap metals importer in China and operates three core businesses: a metal recycling business, foundry business and wholesale scrap metal brokerage business. CTG has expanded into domestic ferrous and non ferrous scrap metal recycling in Shanghai and recently announced further expansion plans to Yantai on the Bohai Coast and Hong Kong with new metals and electronics recycling facilities.

Sims Metal Management has acquired 16% of the existing shares of CTG from founder chairman Mr Ankong Fang and Delco Participation BV, a Netherlands based scrap metal company. Delco has granted an option to SimsMM to acquire a further 2% of CTG. In addition, subject to approval by CTG’s independent shareholders, SimsMM will subscribe for a convertible bond and be issued warrants. After all instruments are exercised or converted, SimsMM expects to hold 20% of the fully diluted issued capital of CTG. In order to support the continued growth plans of the company, Chairman Fang and Delco will re invest two thirds of the proceeds received from SimsMM into convertible bonds issued by CTG on the same terms as SimsMM.

Mr Daniel W Dienst group CEO stated that "After several years of earnest evaluation of opportunities to enter the physical recycling arena on Mainland China and in Hong Kong, we have identified CTG as among the most exciting and attractive companies that will define and shape the nascent Chinese recycling landscape. Through our investment and partnership, we are validating not only CTG's extraordinary growth prospects under the vision of Chairman Fang and his leadership team but, as importantly, the shared cultures of our two companies manifested in unwavering commitments to creation of long-term shareholder wealth, the safety of our valued employees and the health of the environment and communities in which we operate and locate. CTG, as a long standing trusted and honorable trading partner of SimsMM, made this investment decision that much more compelling."

Mr Ankong Fang chairman of CTG stated that "As the largest mixed metal scrap importer and processor in China, we are always exploring opportunities to grow, both within China and worldwide. SimsMM has been one of our major suppliers for a number of years and, given SimsMM's global reach and customer network, advanced technologies and solutions in the metals and electronics recycling industry, the proposed strategic collaboration with SimsMM will add significant value and expertise and complements our Group."

He added that "I believe that SimsMM, the industry leader, becoming a significant minority shareholder shows a strong recognition of our Group’s competitiveness and achievements. I look forward to continuing to lead our company and the opportunity to work with a world class management team under the leadership of Mr Daniel Dienst and particularly Mr Michael Lion, who will become a member of our Board upon the successful completion of the transaction."

Mr Michael Lion chairman Sims Metal Management Asia Limited and SimsMM's nominee to the CTG Board said that "The complementary expertise of SimsMM’s global trading reach, material recovery technology and rigorous controls married to CTG's exceptional leadership and fast-growing presence in the China and Hong Kong recycling space provides a transformational platform for our partnership. As the domestically generated volumes of recyclable non ferrous and ferrous metals and electronics continues to grow, SimsMM's and CTG's shared vision of building a leading best practices position in China together is an extraordinary and exciting opportunity. I am honored to be designated to serve."