German metal parts distributor Kloeckner has just sold its Czech, Bulgarian and Romanian operations as part of a restructuring program aiming to relieve the company of its entire East-European block of operations, according to a company press release.
“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,” stated Gisbert Rühl, Chairman of the Management Board of Kloeckner & Co SE.
By the end of September 2012, a third of these locations had been shut down and half of the planned layoffs had been made.
“The sale of the Eastern European operations is another important milestone in [the restructuring program]”, added Rühl.
Poland and Lithuania are next on the list, with plans for a sale of shares to be completed during the first quarter of 2013, provided that the competent regulatory authorities approve the transactions.
The East-Europe division accounted for 1.4 percent, namely EUR 100 million, of Kloeckner’s global turnover. The division employed a total of 255 people in 14 units.
Most of the Kloeckner operations deal with steel and non-ferrous metal parts storage and distribution. The company also provides maintenance and repair services for steel products. Kloeckner is now present in 20 countries, with 270 active units and some 11,000 employees. End of 2011, the company’s sales were EUR 7.1 billion.
The shares of Klöckner & Co SE are traded on the regulated market segment of the Frankfurt Stock Exchange with further post-admission obligations (Prime Standard), according to the press release. Kloeckner & Co shares are listed in the MDAX®-Index of Deutsche Börse.
Ioana Jelea, email@example.com
photo source: kloeckner.de