Klöckner & Co., a Germany-based producer and distributor of steel and non-ferrous metals, has stated in its financial report for the second quarter and the first half of this year that it has further invested in expanding electrical steel capacity to meet increasing demand in North America. The company aims to cater to the requirements of several industries, including power grid infrastructure, renewable energy and data centers.
To this end, Klöckner has established a state-of-the-art production plant and service center to significantly increase the processing of cold rolled grain-oriented (CRGO) electrical steel, slitting and transformer core production. The new plant is expected to be fully operational in third quarter of this year.
In the second quarter, the company registered a net profit of €2 million, compared to a net loss of €23 million in the same quarter of 2024, while its sales revenue came to €1.64 billion, declining by 6.9 percent year on year, due to lower average prices. In addition, Klöckner’s EBITDA for the second quarter came to €63 million, compared to €42 million in the same quarter last year.
In the given quarter, the company’s steel shipments remained unchanged from the first quarter of 2024 at 1.16 million mt.
In the first half, Klöckner’s net loss amounted to €26 million, compared to a net loss of €55 million in the first half of the previous year, while its sales revenue fell by 5.5 percent year on year to €3.31 billion. Additionally, the company’s EBITDA for the first six months of the year came to €81 million, compared to €79 million in the January-June period of 2024.
In the given period, Klöckner’s steel shipments advanced by 1.3 percent year on year to 2.33 million mt.
“We consistently followed our strategic course in the second quarter. With our capacity expansion for electrical steel and targeted acquisitions, we are unlocking new potential and reinforcing our position as a leading metal processor. This means we are paving the way for sustainable and profitable growth and pressing ahead with the transformation of Klöckner & Co. in our core North American and Europe markets,” Guido Kerkhoff, CEO of Klöckner & Co., stated.