German steelmaker Thyssenkrupp’s trading arm Material Services is to open a new metals logistics center in Rotenburg, Germany, the company said Wednesday.
The center will be part of the distribution unit Thyssenkrupp Schulte and open mid-2021.
The trading hub is planned to handle 20,000 mt of aluminum, stainless steel and steel and will primarily serve customers in northern Germany.
Thyssenkrupp’s Materials Services suffered from lower volumes in Europe and margin pressure last year. Steel service centers catering for the auto industry have been affected particularly following the slowdown of the German car industry.
The unit saw a 4% year on year decline in orders to Eur8.78 million in the business year 2018/2019.
Thyssenkrupp expects the current quarter to remain in challenging conditions with “limited visibility” for the auto industry.
The company said in the shareholder meeting last week that the industrial group will go under heavy restructuring with more details to come in May.
— Laura Varriale