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Kloeckner to sell Calif. assets to Brown-Strauss

Keywords: Tags  Kloeckner, Brown-Strauss, Klöckner, structural steel, Regal Steel Supply, Namasco, Frank Haflich

NEW YORK — Kloeckner Metals Corp. will sell the assets of its West Coast structural steel divisions to Brown-Strauss Steel, the company generally acknowledged as the West’s largest distributor of the products.

Kloeckner, which intends to close its Stockton, Calif., and Fontana, Calif., operations (, July 5), has reached a definitive agreement to sell the facilities’ assets to Aurora, Colo.-based Brown-Strauss, a unit of Blue Tee Corp., New York, according to market sources. The assets are estimated to include about 18,000 tons of inventory, the vast majority wide-flange beams and the remainder predominantly tubing.

Executives of Brown-Strauss and Roswell, Ga.-based Kloeckner could not be reached for comment.

Kloeckner officially exited the West Coast beam and tubing market June 28, according to sources, noting that it would be filling previous orders for the subsequent 60 days and closing the two structural branches within 90 days.

Citing economic problems in Europe, Kloeckner parent company Klöckner & Co. SE announced in November last year consolidations that would cut staff by 16 percent, or more than 1,800 people, by 2014. The company’s branches will be cut by 20.7 percent to 230 (, Nov. 8, 2012). However, at that time Duisburg, Germany-based Klöckner’s chairman, Gisbert Rühl, pointed out that the company was still seeing "dynamic growth" in the United States.

The two West Coast structural steel operations are based on the former Regal Steel Supply Inc., which was formed in 1990 by the former British Steel Plc. The operations were part of Macsteel Service Centers USA, acquired by Kloeckner in 2011 and combined with its existing Namasco Inc.

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