The world's largest recycler of scrap metal, Sims Group Ltd, said it would concentrate on integrating Metal Management Inc before it expanded further into the US ferrous and non-ferrous recycling markets.

The planned merger, which is £¦#118alued at about $US1.6 billion ($NZ 2.1billion) is expected to create the largest metal recycling business in North America.

The combined entity will have more than 200 global operations in its portfolio.

Sims chief executive Jeremy Sutcliffe told ABC's Inside Business that the merged company would be looking to expand through acquisitions, but not right away.

"I think this is a pretty big step for us but it's not the only step, but we've really got to keep the integration and the extraction of the synergies as our number one priority," Sutcliffe said.

"I mean we're not going to run before we can walk. You don't always have the choice of timing with these things but in the ordinary course we'd like to get this merger bedded down first."

Sutcliffe said the company had "huge plans" for the recycling solutions component of the business, which currently accounts for five per cent of the revenue of the group.

"We do want to double that business and I think it's better to talk about doubling the current recycling solutions business (SRS) revenue or current SRS earnings before interest and tax over the next two to three years and we've got a very clear plan as to how we're going to do that."

In the 2006/07 financial year, higher metal prices helped Sims book a 29% rise in net earnings to a record $US254.4 million.

Sales revenue lifted 48% to $US5.55 billion.