Klöckner & Co. Leverages Strengths in Tough Times

For the first half of the year, Klöckner reported net income of €4 million on sales of €4 billion, down from income of €323 million and sales of €5 billion in the first half of 2022.

The Duisburg, Germany–based service center group anticipates a sequential recovery in demand and is projecting a modest increase in shipments overall for the entire year.

The company anticipates a significant reduction in sales for 2023 but continues to project a strong cash flow.

“Despite a challenging environment, we have successfully advanced the implementation of our group strategy. With the completion of the acquisition of National Material of Mexico, we have significantly expanded our product and service portfolio and paved the way for sustainable growth in the North American market,” commented Guido Kerkhoff, CEO of Klöckner & Co., in the company’s most recent earnings report.

Klöckner is pressing forward with increasing sustainable business models and contributing to the decarbonization of the steel industry.

Partnerships with fellow German companies Salzgitter Group and GMH Group to produce CO2-reduced steel were announced in May and June this year.

Material supplied by these companies will be sold under the Nexigen® brand. “We continue to work hard to decarbonize the steel industry. The launch of the Nexigen® Data Services technology solution for instance is an important milestone, providing our customers with smart and digital management of their product emissions,” Kerkhoff said.

The Nexigen® PCF Algorithm is now being used to determine the product carbon footprint (PCF) for nearly all of Klöckner’s products.

“The tool also suggests greener product alternatives and shows the associated reduction potential,” said the company’s release.