Klöckner & Co., a Germany-based producer and distributor of steel and non-ferrous metals, has announced the sale of seven distribution sites located in the US and run by its subsidiary Kloeckner Metals Corporation to Canada-based metal distributor Russel Metals. The sites are located in Austin and Houston (Texas), Charlotte (North Carolina), Dubuque (Iowa), Jacksonville and Pompano Beach (Florida), and Suwanee near Atlanta (Georgia). In a separate transaction, one additional distribution site in Amarillo, Texas, will be sold to Service Steel Warehouse.
Klöckner focuses on value-added services
Guido Kerkhoff, CEO of Klöckner & Co. emphasized that these divestments represent “decisive milestones in the consistent execution of our strategy”. He underlined that the company aims to focus on value-added processing and fabrication services, while reducing dependency on cyclical commodity distribution.
This move aligns with the company’s strategic program “Klöckner & Co: Leveraging Strengths - Step Up 2030”, which prioritizes:
- Growth in service center business
- Expansion in processing and fabrication solutions
- Sustainable, profitable operations in North America and Europe
Financial impact of divestment
By reallocating capital away from distribution, Klöckner & Co can strengthen its higher-value portfolio, according to the company’s press release. Excluding the eight divested sites, the share of sales from value-added and service businesses rose to 86 percent in the first half of 2025, compared with 81 percent including them.
