November 4, 2023 [crocon media – msch] In a bold move to fortify its market position and diversify its offerings, Klöckner & Co has announced the acquisition of Industrial Manufacturing Services (IMS) through its U.S. subsidiary, Kloeckner Metals Corporation (KMC). This acquisition is a significant step in Klöckner & Co’s “Klöckner & Co 2025: Leveraging Strengths” strategy, aiming to enhance its product and service portfolio and reduce dependency on steel price fluctuations.
The integration of IMS’s expertise in fabrication, welding, and assembly into KMC’s operations is expected to yield a robust expansion of its metal fabrication business, catering to the heavy machinery industry’s OEMs. This strategic move not only promises to strengthen KMC’s existing customer relationships but also positions it to attract new clientele by offering unrivaled expertise in finished parts manufacturing.
Klöckner & Co’s CEO, Guido Kerkhoff, emphasized the transaction’s alignment with the company’s vision to become North America’s premier vertically integrated supplier for OEMs. Concurrently, John Ganem, CEO of KMC, highlighted the transformative potential of this acquisition for KMC’s product portfolio and customer value chain.
The acquisition is poised to significantly enhance KMC’s service offerings, leveraging IMS’s proven track record in quality and delivery adherence. This could potentially lead to increased market share and a differentiated position among competitors.
As Klöckner & Co continues to lead the digital transformation in the steel industry, this acquisition is a testament to its commitment to innovation and customer-centric solutions. The company’s strategic foresight in expanding its CO2-reduced materials and services under the Nexigen® brand underscores its pioneering role in promoting a sustainable steel industry.
With the shares of Klöckner & Co SE traded on the Frankfurt Stock Exchange and listed in the SDAX® index, this acquisition is likely to be closely watched by investors and industry analysts for its impact on the company’s financial performance and market valuation.
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