Klöckner sees climate change spurring industry consolidation

Steel distribution group Klöckner & Co believes the economic climate in favour of “clean” steels will be an accelerator of consolidation within the industry.

So far, green steel is hardly visible in the company’s portfolio, chief executive Guido Klöckner admitted during a conference call attended by Kallanish. But the group intends to be active in this respect. “We want to play a role in green steel, and therefore we are looking for partners, to make sure we get volumes,” he said. “It will be important to see who makes the first steps”, with hydrogen, with EAF technology and other prerequisite factors, he noted.

Such a climate of change is a ground for partnership and potential consolidation, “but it is always a question of opportunity”, he said, adding that the company primarily aims at growing organically.

A new partnership was recently struck in the USA with Nucor, “a company that needs a big partner for reliable relations”, Kerkhoff said. That partnership through strategic investment coincides perfectly with projected investments in the US infrastructure, Klöckner says in its quarterly report.

Regarding the marketing of green steel, Kerkhoff said it will be more expensive, and this needs to be tested especially with smaller customers than the big OEMs which have signalled they are in favour.

Christian Koehl Germany