As announced, Klöckner & Co is selling its entire Eastern European operations as part of its restructuring program.
In the first phase of the transaction, activities in the Czech Republic, Bulgaria and Romania, which make up over two thirds of Eastern European operations, were sold. The sale of the remaining activities in Poland and Lithuania is expected to be completed in the first quarter of 2013.
The sale is still partly subject to approval by the antitrust authorities. It has been agreed not to disclose the purchase price. The buyers are local competitors who will carry on the activities independently.
Mr Gisbert Rühl chairman of Klöckner & Co said “We are making faster progress than expected in implementing our restructuring program, in which a total of 60 sites will be closed or sold and the workforce reduced by 1,800 employees. The sale of the Eastern European operations is another important milestone in it.”
Klöckner & Co had recently significantly stepped up the restructuring program as the economic outlook in Europe remains weak. By the end of the third quarter, the Company had already closed 20 sites and cut 800 jobs.