Rivals applaud Kloeckner’s West Coast exit

Jul 11, 2013 | 01:15 PM | Frank Haflich

Tags  Kloeckner, structural steel, steel beams, West Coast, distribution, Brown-Strauss Steel, Reliance Steel & Aluminum, Johannessen Trading Seaport Steel

NEW YORK — Kloeckner Metals Corp.’s exit from the West Coast structural steel market is being applauded by other distributors still pulling out of a post-2008 market slump.

"Maybe this will bring a semblance of order to this market," said a western distributor who, like many of his counterparts, believes there’s been too much service center capacity in the region’s wide-flange beam market, where nonresidential construction activity remains far below its 2006-07 heyday.

Kloeckner, based in Roswell, Ga., has pulled out of the West Coast market for beams and structural tubing, and after filling pre-existing orders it will close its Fontana and Stockton, Calif., facilities by late September (amm.com, July 9). It has agreed to sell the assets, including inventory, to Aurora, Colo.-based Brown-Strauss Steel, market sources said.....





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