Russel completes acquisition of Kloeckner US service centres
Canada’s Russel Metals has closed on the acquisition of seven steel service centres from Kloeckner Metals for $102 million, Kallanish learns from a company press release.
Russel says the acquisition will expand the Toronto, Ontario-based company’s market share in the US.
“We look forward to expanding our US footprint in key geographic areas,” states Russel Metals president and chief executive John Reid. “We welcome the Kloeckner employees to the Russel family.”
The deal is subject to normal working capital adjustments. The US service centre locations include Dubuque, Charlotte, Suwanee, Houston, Austin, Jacksonville and Pompano Beach.
Russel expects to increase market share as the US manufacturing base rebounds and Canadian nation-building projects advance. Executives see benefit from infrastructure investment, including rising demand from data centres (see Kallanish 10 November).
Russel Metals is one of the largest metals distribution companies in North America, with business segments split between metals service centres, energy field stores and steel distributors.
Worthington’s play for Germany’s Kloeckner rings out a year of intense M&A in steel processing sector
The news of US-based steel processor Worthington Steel being in talks with Kloeckner for a “voluntary public takeover” broke in two successive press releases on Saturday December 6, a development termed “crazy” by a market watcher.
Both companies released statements on Saturday to confirm they were in negotiations, with the German metals firm noting that Worthington Steel is conducting a due diligence review with the aim of potentially launching a voluntary public takeover offer for its shares.
“It is currently uncertain whether, or under which conditions, a potential voluntary public takeover offer will be pursued,” Kloeckner said in its statement.
Worthington Steel said in its statement that no investment decision had been made, and that the talks might not result in a deal.
Fastmarkets reached out to Worthington Steel on Monday December 8 for additional details, and a company spokesperson responded that, “at this time, we are still in negotiations and we will not be making any additional comments beyond what we shared on Saturday.”
If successful, the takeover will not be Worthington Steel’s first foray into international investments, especially against the backdrop of the 50% tariff on steel imports that US President Donald Trump implemented in 2025.
Earlier this year, Worthington Steel completed the acquisition of a 52% stake in Italy-based Sitem Group, which makes electric motor laminations and related products for automotive and industrial applications across six facilities in Europe.
Worthington Steel has publicly stated its aim of investing in value-added and specialty steel products in niche markets due to the higher margins the segments provide.
Another example is Worthington Steel expanding its Tempel Steel facility in Apodaca, Mexico, to capture a larger chunk of the growing North American laminated electrical steel market.
Worthington Steel reported net sales of $872.9 million in the third quarter of 2025, an increase of 5% compared with $834 million in the previous year’s corresponding quarter, while quarterly earnings rose by 11.29% to $48.3 million.
Kloeckner is pursuing its own multiyear growth strategy, dubbed “Leveraging Strengths – Step up 2030,” and is focusing on higher value-added segments and its service center business.
As part of the plan, Kloeckner agreed to sell eight distribution sites of its US subsidiary, Kloeckner Metals Corporation (KMC).
Georgia-based KMC sold seven US-based seven service centers to Canadian processor and distributor Russel Metals for approximately $119 million, in a deal announced in late September this year.
KMC sold an eighth US distribution site to Service Steel Warehouse, according to Kloeckner’s financial report for the first nine months of 2025.
The Kloeckner Metals Americas segment generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of €158 million ($183.87 million) in the first nine months of 2025, compared with €112 million in the prior-year period.
The positive trend in Kloeckner’s Americas division comes despite the negative impact of “increased economic uncertainty over the course of the year,” the German company said in its report.
Kloeckner & Co is also focused on expanding its capabilities in the defense and infrastructure sector in Germany to take advantage of increased defense spending across Europe, according to the report.
Kloeckner Metals Germany expands machining services
Kloeckner Metals Germany has started operating an end machining device at its site in Velten in the state of Brandenburg, Kallanish learns from the company.
The new machine, the MT-100-X, by engineering company Sema Technology will serve makers of drives and transmissions, mechanical engineering and tubes processors.
It is one of the largest devices of its kind for the machining of steels, stainless steels and aluminium, Kloeckner says. It works parts with diameters between 25 and 300mm, lengths between 119 and 1,750mm, and weights of up to 750kg.
Kloeckner says it is developing its Velten site as a competence centre for sophisticated value-added services for customers all over Germany. The end machining device comes in addition to its existing line of machinery with a focus on machining and cutting services.
Last year, Velten added a laser system, TruLaser Tube 5000, supplied by Trumpf.
Christian Koehl Germany
Kloeckner confirms track towards processing services
Kloeckner & Co is expecting growth in revenue in the second quarter, due to increasing steel prices, especially in the USA.
In Q1, the company sold 1.17 million tonnes of steel, up 2.7% on the corresponding quarter of 2024. The increase was driven by Kloeckner Metals America, while tonnages in Europe still declined slightly year-on-year, chief executive Guido Kerkhoff said on a conference call on Wednesday monitored by Kallanish.
Despite the overall increase in shipments, lower steel prices saw revenue fall by 4.1% to €1.67 billion ($1.9 billion), while Ebitda stayed flat at €42 million.
Kerkhoff noted that the North American unit replenished its inventories towards the end of last year at low prices, meaning it will be able to benefit from the considerable recent price increases in the region.
He underlined the company’s strategic course of becoming a processor, rather than a mere stockholder. In comparison with the total figures, revenue in the processing operations, including service centres, went up 8%. “There is demand for partners that can take over part of the value-added chain,” he said, adding that the company is seeking more such partnerships with customers as well as suppliers.
Kerkhoff highlighted that the company’s North American business, which now accounts for 60% of group revenue, is particularly strong on value-added services.
Christian Koehl Germany
Kloeckner acquires Ambo-Stahl for defence portfolio
Kloeckner Metals Germany says it has taken over Ambo-Stahl GmbH, Kallanish hears from the German unit of distribution group Kloeckner & Co.
Based in Cologne, Ambo-Stahl is a processor of mainly high-tensile and wear-resistant steels. With the acquisition, Kloeckner intends to widen its portfolio for customers in the defence industry. According to Kloeckner, Ambo-Stahl also supplies to the segments of construction machinery, utilities infrastructure and conveyor technology. Besides flame cutting, it offers machining services such as milling, drilling, and grinding, and prefabrication such as bending and welding.
The takeover marks a further step on Kloeckner & Co’s journey from a distributor to a metals processor. In addition, Kloeckner highlights its ambition in playing a role in the defence sector.
Felix Schmitz, chief executive of Kloeckner Metals Germany, refers to the European “Zeitenwende”, or turning point in history, a term coined by chancellor Olaf Scholz after Russia invaded Ukraine. He says it is the company’s responsibility during this time to support customers in the defence industry by forming strong value chains.
Ambo-Stahl’s website does however not highlight defence, or any other customer group.
Christian Koehl Germany
Kloeckner Kaufungen starts high-end laser cutter
Kloeckner Metals Germany’s warehouse in Kaufungen, near Kassel, has started operating a newly-installed laser-cutting machine, Kallanish learns from the company.
With a laser power of 30kW and a working space for parts of up to 2.5 x 6 metres, the machine figures as one of the biggest and most powerful of its kind, Kloeckner claims. It opens “an all-new dimension of highly efficient steel and metals processing,” it says in a press release. The company has long been emphasising its shift from mere distribution to value-added services.
The new installation is therefore “a stepping stone on our way to be a technology partner for our customers for high-value processing and services,” says Felix Schmitz, chief executive of Kloeckner Metals Germany.
The new machine not only cuts sheet and plate precisely along a line, but also allows for variation in depth and thickness. It replaces an existing machine with 15kW power.
Christian Koehl Germany
Kloeckner Metals Germany nimmt neues Lasersystem in Betrieb
Kloeckner Metals Germany hat in Velten, Brandenburg eines der hierzulande modernsten Lasersysteme für Stahlbearbeitung in Betrieb genommen. Damit wird der Standort als High-Tech Kompetenzzentrum für mechanische Bearbeitung und Rohrlasertechnik etabliert.
Das neu in den Regelbetrieb überführte, automatisierte Lasersystem „Tube 5000“ des Herstellers Trumpf komplettiert den in Velten seit 2014 aufgebauten Groß-Lasermaschinenpark mit jetzt insgesamt fünf Systemen zum Schneiden und Gravieren von Stahl. Die Stahlendprodukte kommen im Landmaschinen-, Kran- sowie im Fahrzeugbau bei Herstellern in ganz Deutschland zum Einsatz.
„Diese Inbetriebnahme ist ein weiteres, industrieweit herausragendes technologisches Beispiel für unsere Innovationsführerschaft in der Stahlindustrie und ein zentraler Baustein auf unserem Weg zum Technologiepartner unserer Kundinnen und Kunden für höherwertige Stahlanarbeitung“, sagt Felix Schmitz, CEO Kloeckner Metals Germany. Darüber hinaus seien die Investitionen in den Standort Velten ein „deutliches Bekenntnis zum Industriestandort Deutschland“ und zum Land Brandenburg. „Hier können unsere Mitarbeiterinnen und Mitarbeiter an einer der fortschrittlichsten Anlagen auf dem Markt ihre ganze Expertise zum Tragen bringen“, so Schmitz.
Kloeckner Metals Germany: „eine der modernsten laserbasierten Anlagen“
Das neue Lasersystem ist Kloeckner Metals Germany zufolge die schnellste Laser-Rohrschneidmaschine der Welt und mit Ausmaßen von circa 16 x 7 Meter eine der größten und modernsten laserbasierten Anlagen für die Metall- und Stahlbearbeitung. Das System erweitere die Bearbeitungsmöglichkeiten mit Technologien wie unter anderem Fließ- und Spiralbohren, Gewindeschneiden sowie -formen und erlaubt Schrägschnitte von bis zu 45 Grad. Kunden und Partner von Kloeckner Metals Germany profitierten durch den Einsatz der Lasersysteme in Velten von besserer Leistung und mehr Effizienz, weil unnötige, bislang manuell erfolgte Arbeitsschritte vermieden würden. Darüber hinaus erlaubten die Systeme eine Just-in-Time Produktion und eine flexiblere und kosteneffizientere Logistik.
Der seit 1995 bestehende Standort Velten ist mit knapp 70 Mitarbeitenden neben Landsberg bei Leipzig und Zwickau einer von drei Standorten des Unternehmens im Osten Deutschlands. Über die Lasersysteme hinaus bietet der Standort mit seinen Hochleistungsmaschinen für den ersten und zweiten Produktionsschritt alle für die moderne Stahl- und Metallbearbeitung wichtigen Dienstleistungen an. Hierzu zählt beispielsweise ein kombiniertes Drehfräszentrum inklusive Lagerung, Sägen und CNC-Drehen. Das Leistungsportfolio reicht dabei vom Abspulen und Schlitzen über das Biegen von Flachstahl sowie dem Plasma- und Autogenschneiden bis hin zum Fräsen, Bohren sowie Kugelstrahlen und Beschichten.
Die Inbetriebnahme des neuen Lasersystems ist der jüngste Meilenstein von Kloeckner Metals Germany bei der Fokussierung auf höherwertige und hochqualitative Anarbeitungsservices, -lösungen und -dienstleistungen. Das Unternehmen hat darüber hinaus in den vergangenen Monaten bereits verschiedene zukunftsweisende Projekte umgesetzt. Hierzu zählen die Inbetriebnahme einer europaweit einzigartigen, roboterbasierten Entgratungsanlage am Standort Bremen, der Einsatz des deutschlandweit ersten eActros E-LKW von Daimler Truck im unternehmenseigenen Fuhrpark am Standort Würzburg sowie die Ersteinführung eines VR-basierten Schulungssystems für Kranführer in der Stahlindustrie am Standort Nürnberg.
