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Kloeckner to consolidate US facilities

Keywords: Tags  Kloeckner Metals, consolidation of facilities, Bill Partalis, California, Oregon, Pennsylvania, Delaware, slitting center Calvert

CHICAGO — Service center operator Kloeckner Metals Corp. will reorganize and consolidate several facilities in the United States, it said Oct. 1.

Kloeckner will consolidate the branch in Bensalem, Pa., moving inventory and equipment to its York, Pa., and New Castle, Del., branches.

On the West Coast, Kloeckner will close warehouses in Portland, Ore.; Oakland, Calif.; and Los Angeles, and consolidate the Los Angeles branch into the company’s plate processing facility in Santa Fe Springs, Calif., which is 15 miles away.

Additionally, the company will install new plate processing equipment at its Tulare, Calif., location to accommodate the business currently processed in Oakland.

Kloeckner Metals said its national pipe distribution network won’t be affected by these moves.

"These changes eliminate duplication in capacity, streamline our supply chain and provide a broader product offering to better service our customer base in these respective regions," Kloeckner chief executive officer Bill Partalis said in a statement Oct. 1, adding the changes won’t interrupt service.

Roswell, Ga.-based Kloeckner expects to have the closures and rationalization of facilities completed, and the affected locations fully operational in their new configuration by year-end.

The company previously shut its structural steel operations in Stockton, Calif., and Fontana, Calif. (, July 9), but it maintained its national pipe distribution networks in both locations.

There is some growth in another region, however.

The company should soon start up a slitting line in Calvert, Ala., announced in June 2012 (, June 18).

"We are still finishing up commissioning of the facility," a spokeswoman at the processing center, located on the campus of ThyssenKrupp AG’s steel complex, told AMM.

The line will initially slit light-gauge sheet, but has the potential for expansion into such processes as cut-to-length, blanking and multiblanking sheet.

Editor's note: This story was updated Oct. 4 to clarify that Kloeckner maintains its pipe distribution networks in both Stockton, Calif. and Fontana, Calif. .

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