Sims Metal Continuing Scrap Supplies to Infrabuild in Australia
Australian Financial Review reported that Sims Metal Management is closely monitoring any potential fallout from the collapse of Greensill Capital on Sanjeev Gupta’s GFG Alliance, but says its relationship as a large supplier to Mr Gupta’s Infrabuild structural steel business in Australia is strong. A Sims spokeswoman said “Infrabuild is a long-term consumer of our recycled ferrous metal products in Australia and we provide material to their EAFs in Sydney and Melbourne. Any disruption to the industry or its supply chain is of interest to us, however as a standard practice we do not speculate or comment on the financial situation of our customers.”
Scrap metal recycler Sims Metal is a big supplier to Mr Sanjeev Gupta’s Infrabuild.
Moody’s late last week downgraded its credit rating on Infrabuild’s bonds because of the risk of contagion from the rest of the GFG Alliance Empire. Another ratings agency, Fitch, put Infrabuild on negative watch earlier this week, citing the risk of contagion from other parts of the GFG business.