Distribution group Klöckner & Co says it has further invested in the expansion of electrical steel capacity in the USA to meet steeply rising demand.
Two years ago, Klöckner gained access to the North American market for electrical steels, both grain-oriented and non-grain oriented. It then noted that this market is much more attractive for investments and acquisitions than in Europe.
During a conference call on Wednesday, Klöckner chief executive Guido Kerkhoff mentioned the company has established a new state-of-the-art production and service centre in the US. Klöckner will significantly expand the processing of cold-rolled grain-oriented (CRGO) electrical steel, slitting and transformer core production, Kallanish heard him say.
He noted the US has urgent demand for renewal of transformer capacities in the national power grid, given its frequent breakdowns. The new plant is expected to become fully operational over the course of the third quarter.
Kerkhoff also mentioned a new acquisition in Switzerland, where the firm has taken over Simfloc, a company specialising in the installation of building services. This step makes Swiss subsidiary Debrunner Koenig the first end-to-end provider of building installations in Switzerland, thus opening up new markets, he said.
Klöckner’s latest acquisition occurred in Germany, in June, when it integrated Ambo Stahl, a Cologne-based company specialising in wear-resistant and high-tensile special steels, ballistic and armour steels. This expansion of the product and service portfolio also taps into new growth potential in the security and defence sector, which the company has been highlighting lately.
Christian Koehl Germany
