German steel distributor Klöckner has sold its Spanish business to steelmaker Hierros Añon based in A Coruña, Spain, in a move to focus on its core markets, the Duisburg-headquartered company said on Friday.
According to Klöckner, the Kloeckner Metals Ibérica Group remains under pressure due to a continued difficult economic environment in Spain.
The Spanish arm generated sales of €120 million ($128.4 million) last year, accounting for around 2% of the Klöckner group’s sales. The division operates 24 distribution and service centers in Spain; shipments amount to 180,000 mt/year.
Klöckner is currently carrying out its “One Europe” program, focusing on core markets and centralizing the management structure of its European distribution services by the end of 2018. As reported, the distributor will reduce its workforce by around 100 jobs. The job cuts mainly affect Spain, France and the UK, but will not involve closures of actual stockholding sites.
“As part of our One Europe program we focus more and more on our core markets to improve our profitability. With the sale of our business in Spain we are consequently implementing this strategy,” Klöckner CEO Gisbert Rühl said.
Laura Varriale, PLATTS