Germany-based steel producer and distributor Kloeckner & Co. AG has said it plans to sell its Canadian subsidiary, flat rolled steel processor Namasco Ltd., and that it has already instructed an investment bank to initiate the selling process.
Kloeckner & Co. said that it will continue to focus on its steel distribution business in North America, though it will exit the North American automotive industry, which Namasco primarily catered to.
"Due to structural changes in this industry and the market trend over the past few years, this business could only be expected to perform well for the company if the relevant services were expanded to the US," Kloeckner & Co. said in a statement.
No potential buyers for the subsidiary were named in Kloeckner's announcement.