In the first phase of the transaction, activities in the Czech Republic, Bulgaria and Romania, which make up over two-thirds of Eastern European operations, were sold. Klöckner’s business in Romania consisted of sales operations and a warehouse for the delivery of various metallurgic products needed for metallic constructions.
The sale of the remaining activities in Poland and Lithuania is expected to be completed in the first quarter of 2013. The sale is still partly subject to approval by the antitrust authorities.
Klöckner generates annual sales of some EUR100 million in Eastern Europe with 255 employees at 14 sites (around 1.4% of Group sales).
“We are making faster progress than expected in implementing our restructuring program, in which a total of 60 sites will be closed or sold and the workforce reduced by 1,800 employees. The sale of the Eastern European operations is another important milestone in it,” said Gisbert Rühl, Chairman of the Management Board of Klöckner & Co SE.
Klöckner had recently significantly stepped up the restructuring program as the economic outlook in Europe remains weak. By the end of the third quarter, the company had already closed 20 sites and cut 800 jobs.
Klöckner’s core business is the warehousing and distribution of steel and non-ferrous metals as well as the operation of steel service centers.
Based on the Group’s distribution and service network, more than 170,000 customers are supplied through around 270 locations in more than 20 countries. Currently Klöckner employs around 11,000 people. The Group had sales of around EUR7.1 billion in fiscal 2011.