OEMs

Klöckner Plans to Expand US Fabrication Business, Buys Fabricator IMS

November 2, 2023

Klöckner & Co. said it has agreed to acquire South Carolina-based fabricator Industrial Manufacturing Services (IMS) through US subsidiary Kloeckner Metals Corp.(KMC).

Terms of the deal were not disclosed.

“The acquisition of IMS is the second significant transaction in just a few months, which will accelerate the expansion of our product and service portfolio in line with our corporate strategy ‘Klöckner & Co 2025: Leveraging Strengths,’” Guido Kerkhoff, CEO of Klöckner, said in a statement on Thursday.

“We intend to become the best vertically integrated supplier for OEMs in North America,” he added.

As part of this strategy, Klöckner said it intends to expand its fabrication portfolio to benefit from the “highly profitable fabrication business,” and from being less dependent on steel price developments.

The company noted that the buy of IMS contributes to this strategy. Klöckner said the consolidation of the business will take place from the beginning of November.

“We will significantly expand our metal fabrication business along our customers’ value chains,” John Ganem, CEO of US subsidiary KMC, said. He added that “IMS will add unrivaled expertise in welding and finished parts manufacturing to our unique product portfolio.”

IMS, headquartered in Lancaster, S.C., provides fabrication, welding, assembly, and just-in-time warehousing of light- to medium-size sub-assemblies to OEMs of the heavy machinery industry, according to the statement

KMC said it “intends to build on this growth opportunity, attract new customers within the market, and further develop existing relationships with OEMs.”

The acquisition follows other Klöckner North American acquisitions. First, of Mexican service center group National Material of Mexico (NMM) in early August, and also Sol Components at the beginning of October, “a US market leader in end-to-end structural solutions for the solar industry.”

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.