End of the Road: Major UK Scrap Metal Firm with a site in Hartlepool files for Administration...
- teessidetoday
- Nov 25
- 2 min read
Unimetals on Files for Administration, After Takeover of Rival Metal Firm 'Sims Metal' Falls Apart...
25th November 2025
A major UK scrap metal business has collapsed into administration, leaving scores of workers out of a job just one month before Christmas — including staff at the Unimetals site in Hartlepool.
Unimetals Recycling (UK) Ltd formally filed for administration yesterday evening, after the company was unable to complete outstanding payments linked to its £195 million takeover of rival scrap metal giant Sims Metal. The shortfall was reportedly made worse by the sudden withdrawal of a key investor, leaving the business unable to bridge its funding gap.
The company employs around 650 people across dozens of UK sites, all of whom now are said to face immediate redundancy, with Hartlepool among the areas affected.
A spokesperson confirmed the collapse, saying:
“We have today filed a petition for the compulsory liquidation of Unimetals Recycling (UK) Ltd. We recognise how distressing this news will be for everyone connected to Unimetals Recycling (UK) Ltd, particularly our employees who have worked tirelessly over the last year since we acquired it from Sims to try to turn this business around. Their dedication, skill and resilience are the backbone of this business.“Our priority now is to work closely with all stakeholders including employees, suppliers, customers, creditors and our regulators to ensure that the liquidation process is managed safely, responsibly and transparently. We are working urgently to agree on a clear plan and timeline for what happens next.”
A Collapse Months in the Making
In August 2024, Unimetals struck a major deal to acquire all 28 Sims Metal sites in the UK, including port operations and industrial shredders, in a £195 million (£220m EUR) transaction.
But the company reportedly failed to meet its final instalment — estimated at between £35 million and £55 million — sparking a financial crisis that it was unable to recover from.
Efforts to restructure and secure fresh capital continued into the autumn. By October, the company had filed a Notice of Intention to Appoint Administrators, a formal step signalling the company was sliding into insolvency. A second notice was then followed in early November as negotiations dragged on, but ultimately no rescue package materialised.
Hartlepool Workers Left in Limbo
The collapse now places the future of the firms Hartlepool site in serious doubt. Staff are expected to be contacted by administrators in the coming days with further information, though many are already reporting they have effectively been left without work.
This latest blow comes at the worst possible time for local families heading into the festive period, with the collapse of Teesside business Venator earlier this year & Stadium Consumer Products, raising wider questions about the stability of the regions economy — and its impact on towns like Hartlepool where its seems whilst jobs are being created, twice as many are being lost !
