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Germany's Klöckner to exit Brazilian steel marke-2025年广州国际有色金属工业（铜业）展览会-Non-Ferrous Metals Exhibition-Copper Exhibition-The 25th China(Guangzhou) Int'l Non-Ferrous Metals (Copper) Exhibition
3/18/2025 有色金属展-铜材展-non-ferrous metals expo |
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Brazilian steelmaker Gerdau has reached an agreement with Germany-based producer and distrilbutor of steeland non-ferrous metals Klöckner & Co., to acquire the latter''s steel service center in Brazil for an undisclosedamount, subject to the approval of the Brazilian competition authority CADE, according to Brazi''s NationalInstitute of Steel Distributors (INDA).
Klöckner entered the Brazilian market in 2011 by acquiring Brazilian distributor Frefer Metals Plus for aroundBRL 300 milion. Frefer produces and sells steel products such as hot rolled coils (HRC) and sheets, heavyplates, steel strips and structural profiles. However, the company has not achieved its growth target for Brazildue to competition with steel companies such as Usiminas, Companhia Siderurgica Nacional (CSN).ArcelorMittal and Gerdau.
The acquisition is considered to be a strategic move by Gerdau, which has recently increased its HRCproduction capacity to 1.1 milion mt per year. As a result, it will be able to support its expansion plans
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