In morning trade the Sims Metal Management Ltd (ASX: SGM) share price has dropped lower despite the release of an announcement this morning.
At the time of writing the scrap metal company's shares are down 1% to $10.88.
What was announced?
Overnight on Tuesday Sims hosted an investor strategy day to unveil its strategic plan to drive growth through to 2025.
According to the release, the company's CEO, Alistair Field, said the company wants to "create a world without waste to preserve the planet."
To accomplish this, the company shared plans for each of its business units and highlighted key priorities. They are as follows:
Metals: Continue to lead metal recycling by nearly doubling the non-ferrous business and growing the ferrous business by 40% in the United States within the next six years.
E-recycling: Increase e-recycling services and become the leading e-recycler of data storage centres ("the cloud"). Aim to recycle 10% of the cloud over the next six years and be the original equipment manufacturer supplier of choice for recycled plastic.
Municipal Recycling: Lead change in municipal recycling by instituting new systems for better solutions. Secure additional large city municipal recycling contracts by 2025.
It also revealed a couple of new business goals. These are:
Waste-to-Energy: Expand into waste-to-energy by capturing the energy available in the non-metallic residue produced from the shredding process (ASR) to generate electricity. Install and operate seven plants within 10 years with the aim of zero waste disposal and energy costs over the long-term.
Energy: Leverage expertise and best practices from joint venture partner LMS Energy, the leading landfill energy company in Australia, to expand that business model into other parts of the world. Acquire or build a minimum of 50 Megawatts of sites within the next six years.
Should you invest?
I think its growth plans make a lot of sense and could create a lot of value for shareholders if it successfully achieves them. Furthermore, it is great to see a company like Sims looking to help the environment.
But it's a little too soon for an investment for me and I would prefer to buy fellow materials shares BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) at this point.
