World Trade - September 2008 - (Page 15) on the cost of shipping in bulk due to China’s increased demand for vessels. These key factors are changing market dynamics, says Dietrich. A transforming public perception of the company’s core business has had a positive impact on demand. “With the recent change in understanding of the value of global recycling, Sims is no longer viewed as a scrap metal exporter but as a major ” source of renewable resources, says Dietrich. ‘A banking partner that understands your business model and is able to respond to your immediate needs with agility is very important.’ “In a continually evolving landscape, it’s important to have a banking partner that understands our business model and is able to respond to our immediate needs with agility, says Dietrich. “HSBC is ” dedicated to seeing our business succeed. They understand that if our business succeeds, theirs does too. ” About HSBC Trade and Supply Chain HSBC Trade and Supply Chain is one of the largest trade services organizations in the world. HSBC’s award-winning international trade expertise combines over 140 years of extensive experience in international trade with a unique blend of local knowledge, supported by advanced technology and an extensive network of dedicated trade offices in over 60 countries and territories worldwide ‘From scrap metal to renewable resources’ According to Dietrich, the use of LC discounting has become more frequent as the value of the underlying commodities has grown. For example, the price of ferrous scrap metal has sextupled since 1998. As a core component in the company’s working capital toolkit, today Sims leverages LC discounting periodically. Notes Betson, “With transactions ranging in size from $15 to $30 million, collecting cash one to three days faster is very valuable to Sims. ” The Hongkong and Shanghai Banking Corporation Limited The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group which, with around 10,000 offices in 83 countries and territories and assets of US$2,150 billion as at 30 June 2007 is one of , the world’s largest banking and financial services organizations About Sims Group Limited Sims Metal Management’s core business is metal recycling, with an emerging business in recycling solutions. In March of 2008 Sims Group merged with the U.S. based recycling company Metal Management forming one of the largest publicly traded global recyclers. As a result, Sims Group’s North American division was renamed Sims Metal Management. Together, Sims Group and Metal Management are uniquely positioned to serve customers worldwide. Days Sales Outstanding (DSO) is a key working capital metric for Sims, since the ability to collect quickly reduces borrowing costs and enables Sims to preserve its credit facility. Given the multi-million dollar value of Sims’ shipments, collection timing and receivables management are critical to balance sheet performance. Sims Group and Sims Metal Management are publicly listed on the New York and Australian Stock Exchanges (NYSE: SMS, ASX: SGM-AU). Domiciled in Australia, Sims earns approximately 80 percent of its revenue from international operations in the United Kingdom, Continental Europe, North America, New Zealand and Asia. http://www.tradeservices.hsbc.com
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