Sembcorp Industries sold 60% of recycling business for $6m

The sale is part of the company's recycling of capital, Sembcorp's CEO said.

Sembcorp Industries' (Sembcorp) subsidiary, Sembenviro Recycling, sold its 60% stake in Sembcorp Tay Paper Recycling (Sembcorp Tay Paper) to Tay Paper Resources, for a price of $6m.

According to an announcement, Sembcorp Tay Paper provides a range of paper recycling services as well as on-site and off-site shredding services in Singapore.

Sembcorp group president and CEO Neil McGregor commented, “This divestment is in line with our intention to unlock value and recycle capital to reinvest in growth.”

The completion of the divestment is expected to take place by mid-2018.

Previously, Sembcorp sold the assets and businesses of its medical waste division to TEE Medical Services for $20m. During the announcement of its first quarter results, the company said that the market environment is expected to remain challenging in 2018. Its profits plunged 34.1% YoY from $116.3m to $76.65m.