Kloeckner Metals Announces Consolidations
This is consistent with the strategy to realize synergies from the integration of MacSteel Service Centers USA and Namasco Corporation.
Kloeckner will consolidate the service center located in Bensalem, Pa., moving inventory and equipment to its York, Pa., facility and New Castle, Del., operation.
On the West Coast, Kloeckner Metals will close its facilities in Portland, Ore., Oakland, Calif., and Los Angeles, Calif. The Los Angeles branch will be consolidated into another Kloeckner location, its plate processing facility in Santa Fe Springs, Calif., located just 15 miles away. Additionally, Kloeckner will install new plate processing equipment in its Tulare, Calif., location to accommodate the business currently processed in Oakland.
Kloeckner Metals operates a pipe distribution network across the United States, which will be unaffected by these moves.
"These changes eliminate duplication in capacity, streamline our supply chain, and provide a broader product offering to better service our customer base in these respective regions. It is our intent that these changes will be seamless to our customers with no interruption in service," said Bill Partalis, chief executive officer of Kloeckner Metals.
Kloeckner intends to have these consolidations completed and the affected locations fully operational in their new configuration by the end of 2013.
Kloeckner Metals is the North American subsidiary of Klöckner & Co SE. Kloeckner Metals Corporation is the third largest metal distribution company in North America. The core business of Kloeckner Metals is the warehousing, processing and distribution of steel and nonferrous metals. Thousands of customers are supplied from 55 distribution locations by about 2,500 employees. The company had sales of around U$3.5 billion in fiscal year 2012.