U.S. commodities merchant Gerald Group will make London its main trading hub as it expands in refined metals and raw materials markets.
The Stamford, Connecticut-based commodities trading house has been growing in the U.K. capital since its acquisition of the metals trading unit of Reuben Brothers Resources Group in 2014 and has about 35 staff in its London office, said Jean Baudois, group head of finance.
“We have been growing in bulk commodity markets, and while refined metals have been more difficult, we continue to do slightly larger volumes,” Baudois said by phone from Morges, Switzerland. “Before we grow faster, we want to ensure we’ve got the right footprint for the business.”
The group will make Shanghai its largest trading base in Asia as it seeks to grow in markets spanning non-ferrous and precious metals, as well as raw materials including iron ore, base metal concentrates and bauxite, he said.
Pengxin International Mining Co, the Shanghai-listed copper and cobalt miner, took a strategic stake in early 2016 to expand in markets that had been buffeted by oversupply and slowing demand. The U.S. company has about $3 billion of assets and generates about $10 billion in revenue, according to a statement linked on its website.
Offices in Switzerland and Singapore will remain open, but some staff may relocate during the reorganization, Baudois said.