Klöckner & Co has completed the sale of parts of its European commodity distribution business, which comprises the country organizations in France, the United Kingdom, the Netherlands and Belgium, to the Spanish company Hierros Añon S.A. today.
On December 22, 2023, Klöckner & Co announced the intention to sell parts of its European distribution business. At the same time, the company declared that, going forward, it intends to focus on higher value-added products and services (such as processing and fabrication services) within its customer value chain. These offerings, characterized by long-term contracts and strong customization, ensure steady demand and enhanced profitability. As a result, the closed sale significantly reduces the company’s exposure to volatile low-margin commodity markets.
Guido Kerkhoff, CEO of Klöckner & Co: “With the completion of this transaction, we have reached a major milestone in optimizing our portfolio. Going forward, we will set a clear focus on growing our attractive and profitable European businesses in Germany, Austria and Switzerland as well as in the North American market.”
The most recently sold European units accounted for around 20% of Klöckner & Co Group’s workforce and 10% of its sales. As a result, Klöckner & Co will from now on generate well over 50% of Group sales in North America.
Source: kloeckner.com
