Germany’s Klöckner sells eight service centers in the US

Seven facilities will be acquired by Canada's Russel Metals

German steel producer and distributor Klöckner & Co. is selling eight distribution facilities in the US, Bloomberg reports, citing a statement from the company.

Seven of them, located in Texas, North Carolina, Iowa, and Georgia, will be acquired by Canada’s Russel Metals for nearly $119 million. The deal will result in a balance sheet profit for Kloeckner of more than €20 million ($23 million).

As John Reed, president and CEO of Russel Metals, noted, the acquisition of these seven facilities complements the company’s existing branches in the US, as they will be linked to its presence in key American regions (Florida/Georgia. Texas, North Carolina, Iowa/Wisconsin). In addition, the deal is a continuation of Russel Metals’ long-term growth strategy in the United States.

Klöckner’s eighth facility is located in Amarillo, Texas. It is being purchased by the American company Service Steel Warehouse, with the details of the deal not being disclosed.

These transactions are part of Kloeckner’s strategy to focus on higher value-added service centers, such as processing and manufacturing solutions. They offer more stable demand and higher profitability, while being less volatile than commodity markets.

As a reminder, US steel companies reduced their imports of rolled steel by 16.8% in August 2025 compared to the previous month, to 1.402 million tonnes. Total steel imports (rolled products and semi-finished products) for the month also fell by 16.8% month-on-month to 1.86 million tons.