Kloeckner Metals Corp. will sell the assets of its West Coast
structural steel divisions to Brown-Strauss Steel, the company
generally acknowledged as the Wests largest distributor
of the products.
intends to close its Stockton, Calif., and Fontana, Calif.,
amm.com, 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.
Brown-Strauss and Roswell, Ga.-based Kloeckner could not be
reached for comment.
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.
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 companys branches will be cut by 20.7
percent to 230 (
amm.com, Nov. 8, 2012). However, at that time
Duisburg, Germany-based Klöckners 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.