The sale of parts of Klöckner & Co’s distribution business in Europe has been successfully completed. This means that the national companies in France, Great Britain, the Netherlands and Belgium will go to the Spanish company Hierros Añon S.A.
Klöckner & Co had already announced its intention to sell parts of its European distribution business on December 22, 2023. At the same time, the company announced that in the future it would concentrate on higher-quality products and services - including the processing and metal processing business - along the customer value chain. These offerings are characterized by long-term contractual relationships and strong customer specialization, ensuring stable demand and higher profitability. With the sale, the company is significantly reducing its dependence on volatile, low-margin raw material markets.
“With the completion of this transaction, we have reached an important milestone in optimizing our portfolio. In the future, we will concentrate on growing our attractive and profitable European business in Germany, Austria and Switzerland as well as in the North American market,” said Guido Kerkhoff, Chairman of the Board of Klöckner & Co.
The European activities that have now been sold accounted for around 20% of the group's workforce and 10% of the sales volume of Klöckner & Co. This means that from now on Klöckner & Co will generate well over 50% of the group's sales in North America.
About Klöckner & Co
Klöckner & Co is one of the world's largest producer-independent steel and metal distributors and one of the leading steel service center companies. With a distribution and service network of around 120 locations, primarily in North America and the DACH region, Klöckner & Co serves over 60,000 customers. The group currently employs around 6,400 people. In the 2022 financial year, Klöckner & Co generated sales of around €9.4 billion. By expanding its portfolio of CO2-reduced materials, services and logistics under the Nexigen® umbrella brand, the company is underlining its role as a pioneer of a sustainable steel industry. At the same time, Klöckner & Co, as a pioneer of digital transformation in the steel industry, has set itself the goal of digitizing and largely automating its supply and service chain. The company aims to become the leading one-stop shop for steel, other materials, equipment and processing services in Europe and America.
