Sims (ASX:SGM) said it will cease the development of its plasma-assisted gasification technology for processing automotive shredder residue (ASR) waste, conducted by unit Sims Resource Renewal, according to a Thursday filing with the Australian bourse.

The decision follows a market assessment indicating that current conditions are not favorable for scaling the technology, the filing said.

Closure-related costs are expected to total AU$4 million in the fiscal second half, alongside an AU$21 million non-cash write-off for the fiscal year, the filing added.