Klöckner To Acquire National Material of Mexico

Klöckner & Co. announced an agreement to buy Mexican metal supplier National Material of Mexico (NMM) for $340 million. The Duisburg, Germany–based service center said the transaction will be completed through Klöckner & Co.’s U.S. subsidiary, Kloeckner Metals Corp. (KMC). NMM is an independent service center with seven locations throughout Mexico. The company specializes in the processing of hot-rolled, cold-rolled, grain oriented, and non-oriented steel, among other varieties, serving the heating, ventilation, and air conditioning (HVAC); home appliance; and motor and transformer industries. The expansion will increase KMC’s North American presence with prominent automotive and industrial customers, and boost exposure to the growing electrical vehicle market. “The high complementarity of regional presence, customer segments and NMM’s significant footprint within the automotive sector make the transaction a natural step for both parties,” Klöckner said in a statement. “In general, Mexico is a very attractive location for KMC, given its proximity to the USA and its well-qualified labor market,” the company noted. “All major global automotive companies are producing in the country and the number of vehicles manufactured there is expected to grow significantly going forward.”