Unimetals faces liquidation with hundreds of UK jobs at risk

More than 650 employees are set to lose their jobs after Unimetals, a major player in the scrap metals sector, filed for compulsory liquidation. The company, which operates from 27 locations across the United Kingdom, took this step after an unsuccessful attempt to find a suitable buyer for its operations.

The scrap metals industry has long generated significant revenue in the UK by recycling steel, aluminium, and copper into new products. Recent trends, such as the adoption of electric arc furnaces capable of melting down recycled steel, had provided renewed optimism for the industry’s future. However, Unimetals has struggled to weather market conditions marked by an oversupply of scrap and steel, causing prices to fall and challenging the company’s financial stability.

Established in 2023 by metals traders Jamie Afnaim and Alec Sellem, Unimetals aimed to consolidate metals recycling businesses, with a specific interest in ventures supporting the move away from fossil fuels. The group acquired its UK sites from Australian metals company Sims in October 2024 for £195 million. These assets included four metal shredders and three port facilities, forming the backbone of its nationwide operations headquartered in StratforduponAvon.

Under Sims’s ownership the business had recorded a loss of £22 million in the financial year ending June 2023. Despite being granted additional time to complete its final payment, Unimetals failed to secure the necessary funds. The company spent recent weeks filing multiple notices of intention to appoint administrators before ultimately pursuing liquidation.

A company spokesperson acknowledged the stress facing employees, stating that every effort was made to secure new financing. Attempts at mergers and acquisitions were conducted in partnership with stakeholders and specialised advisers but did not produce a final agreement. Professional services firm Alvarez and Marsal has been overseeing discussions regarding the next steps for Unimetals.

Unimetals also operates a hydrometallurgical facility in Kezad near the port of Abu Dhabi. Despite the industry’s strong long-term fundamentals, the outcome for the company’s workforce and assets now hinges on the liquidation process as the business seeks an orderly resolution.