Thyssenkrupp Material Services is planning to close its distribution arm in Sweden following unsuccessful measures to save the business, a thyssenkrupp spokesperson confirmed to S&P Global Platts Friday.
“After carefully validating all options in the last months, the decision has been taken to enter into negotiations with the concerned labor unions with regard to a possible closure of thyssenkrupp Materials Sverige by the end of this calendar year,” the spokesperson said.
The Swedish arm distributes special steel and sales offices in Malmö, Stockholm and Sundsvall, as well as warehouse and production facilities in Gothenburg.
“For many years, the financial results of thyssenkrupp Materials Sverige have been under pressure due to a continuously challenging environment in the narrow niche market that thyssenkrupp Materials Sverige operates in,” the spokesperson said.
The company said that thyssenkrupp Materials is currently reviewing its distribution network and is considering focussing more on its current core markets and core market segments.
Laura Varriale, PLATTS