The UK's metals recycling industry is facing a severe crisis as one of its biggest players, Unimetals Group, teeters on the edge of liquidation, putting hundreds of jobs in jeopardy just weeks before the Christmas period.
Imminent Collapse and Widespread Job Losses
Sky News has learned that Unimetals Group could formally collapse into liquidation as soon as Tuesday, 25th November 2025. The company, which employs 650 people across Britain, is expected to make most, if not all, of its workforce redundant. This development comes after the firm filed several notices of intention to appoint administrators in recent weeks.
The potential failure of Unimetals has raised alarms within the government due to the company's significant role in the UK's steel supply chain. Unimetals operates a substantial network of more than 25 sites nationwide, where it collects, processes, and shreds metallic waste to produce essential raw materials for copper, aluminium, and steel producers both domestically and internationally.
Failed Rescue Bid and Financial Troubles
According to industry sources, a month-long search for a buyer to rescue the business has failed to yield a successful deal. The professional services firm Alvarez & Marsal (A&M) has been coordinating talks about the company's future, with a number of major steel and metals groups being approached to gauge their interest.
The roots of the current crisis appear to be financial. Unimetals completed the £195 million purchase of its rival, Sims Metals, last year. However, it is reported that the company failed to make at least one deferred payment related to this major transaction. While Unimetals had secured new funding to meet these obligations, its prospective backer pulled out several weeks ago, sealing its fate.
Broader Implications for the UK Industry
The looming liquidation of Unimetals represents a significant blow to the UK's industrial landscape. The loss of such a key recycler not only endangers the livelihoods of 650 employees but also disrupts a critical link in the national and international metals supply chain. The situation underscores the fragility within the sector and the knock-on effects that the failure of a major employer can have on local communities and the wider economy.
With the company's collapse seemingly imminent, the focus now shifts to the administrators and the potential for salvaging parts of the business, as workers face an uncertain future.
