The company bought the site of about 140,000 sq/m in a strategic deal that gives it one of the few remaining sites with deep water access capable of berthing Handymax vessels up to 50,000 tonne displacement.

Sims said the unique position gave it a rare, long-term ability to create a high quality and low cost metal recycling processing and resource renewal facility.

It has plans to produce high quality ferrous and non-ferrous metals with possible hydrogen generation and waste treatment.

“Near term the land will be utilised as a deep water facility for domestic and export customers with a limited amount of capital spend required to prepare the facility,” Sims told investors.

“Longer-term, Sims will continue to develop the business plans for a potential full-scale operation on the site.

“Direct shipments from the facility are anticipated in 2023 with net benefits through additional revenues and cost savings producing returns greater than Sims cost of capital on investment.”

It said the plans were yet to be finalised and consultation with the State Government and the community would be done.

Sims managing director Alistair Fields said the acquisition was in line with the company’s strategy to grow large coastal markets using top tier processing facilities and bulk exports options.

It would fund the land purchase through recycling surplus and underperforming capital.