Klöckner & Co completes divestment of eight US distribution sites

Klöckner & Co has successfully completed the sale of eight distribution locations operated by its US subsidiary, Kloeckner Metals Corporation, further advancing its strategic repositioning toward higher value-added activities.

Seven sites were transferred to Russel Metals on December 31, 2025, while the sale of an additional distribution site in Amarillo, Texas, to Service Steel Warehouse was finalized earlier in December.

The divestments form part of Klöckner & Co’s ongoing corporate strategy to reduce exposure to traditional distribution and strengthen its service center and processing footprint. Chief Executive Officer Guido Kerkhoff underlined the strategic rationale behind the transactions: “As a result of both divestments, we have focused even more on our higher value-added and service center business. This was the next logical step in the successful implementation of our strategy. By 2030, we want to establish a leading position as a metal processor and service center company in North America and Europe, while developing our profitability to be among the highest in our industry.”

Excluding the eight locations sold, higher value-added and service center activities accounted for 87% of group sales in the first nine months of 2025, six percentage points more than when the divested sites were included. These businesses are characterised by more stable demand and structurally higher margins, further strengthening Klöckner & Co’s earnings profile.

In addition, the transactions free up capital that can be redirected from the distribution business into higher value-added operations, supporting the company’s ambition to reduce its dependence on volatile commodity-driven markets and reinforce long-term profitability.

Source and Photo: Klöckner