We are living in unprecedented circumstances due to the Covid-19 pandemic, which creates uncertainties for businesses and wider society. Kloeckner Metals UK is highly resilient and capable of delivering high quality products and services to our customers. We are part of a multinational company with a strong financial position, robust supply chain and ability to flexibly adjust to difficult challenges through our advanced digitalisation strategy:
Member of Klöckner & Co Group
Klöckner & Co is one of the largest producer independent distributors of steel and metal products and one of the leading steel service centre companies worldwide. Based on its distribution and service network of around 160 locations in 13 countries, the Klöckner & Co Group supplies around 100,000 customers globally.
As a subsidiary of Klöckner & Co, Kloeckner Metals UK is the largest mill independent multi-metal stockholder & distributor in the UK. Being a member of the global Group allows us to more easily implement our strategic initiatives by introducing new stock ranges, investing in our people, financing new processing capabilities, and implementing innovative digital solutions and IT infrastructure projects with the support of Group Shared Services and kloeckner.i, a subsidiary focused on driving digitalisation throughout the Group. As a result of these initiatives, we are able to develop long term, service-driven partnerships with our customers and continuously improve their experience.
One of Kloeckner’s main strengths is its purchasing power. Kloeckner has consistently bundled its purchasing requirements on a global basis, in order to leverage its size for negotiation purposes. Being a member of the Klöckner & Co group enables Kloeckner to carefully select trusted global suppliers and procure the highest quality standards at the most competitive prices. This furthermore allows us to offer to our customers:
- Continuity of supply
- The best quality products
- Consistent availability
- Competitive pricing
- An ethical supply chain
Financing of the Group is centrally managed by Group Treasury in Duisburg, Germany. Kloeckner therefore benefits from long-term financing arrangements, including the Group’s European Asset Backed Security (ABS) program and intercompany loans managed through the Group’s cross-border cash pooling arrangements. Centralised financing strengthens the Group’s negotiating position with banks and other lenders and allows the Group to negotiate bespoke credit facilities with banking syndicates which would not be available to smaller businesses.
Kloeckner Metals UK is therefore not dependent on short-term, local banking arrangements. This is particularly important in difficult periods such as the 2008 financial crisis and the current Covid-19 pandemic, when banks may decide to cancel credit limits or not renew existing arrangements when companies need it the most. Many large UK corporates will find it difficult to access the Bank of England loan program (the CCFF scheme) because they do not have an investment grade credit rating and are not eligible for the SME programs, but this is not an issue for Kloeckner Metals UK.
Digitalising the metals industry
As a pioneer of digital transformation in the metals industry, Kloeckner’s target is to fully digitalise its supply and service chain. The positive effect of our digital transformation journey has not only been rewarded by increased productivity and improved efficiency, but also Kloeckner’s ability to quickly respond to difficult times, like today, and move our workforce to more necessary and safe home-working.
Furthermore, our customers are also experiencing benefits due to our digitalisation efforts, many of which are coordinated by Kloeckner Shared Services and supported by kloeckner.i. Implementation of solutions such as Online shop, EDI connections and Contract Portal has allowed our customers to stay in control of their supply chain and support their operations during these unprecedented times. Our digital solutions are tailored to both small & large customers and deliver the following benefits:
- Access to over 5500 metal products
- Ability to order online, 24/7, even when your Kloeckner sales contact is not available
- Ability to view existing stock, prices and live delivery dates
- Call off your stock via Contract portal
- Request & accept quotes online
- Save time (no need for long winded emails & on hold calls)
At Kloeckner Metals UK we are fully committed to continue running our sales and manufacturing operations to support our customers through these difficult times. You can rest assured, we are here for the long term!