Reconstruction of the company
After the Second World War, the Klöckner & Co group was placed under the supervision of the Allies, whose aim was to unbundle the large company. Thus, a new start was made.[14] Like the other Klöckner & Co companies, the trading company benefited from the global demand for iron and steel that soon set in. After the legal separation from the Klöckner-Werke AG and Klöckner-Humboldt-Deutz AG in the 1950s, Klöckner & Co developed into a diversified trading company.[15] The sale of steel in Germany brought high profits during the "Wirtschaftswunder" ("Economic Miracle"), as Germany rapidly reconstructed and developed following WWII. Branches abroad strengthened international business. Klöckner & Co also became active in other sectors, such as shipping and burner technology.
Klöckner & Co responded to the end of the Wirtschaftswunder with more service, a reorganization, and more international trading activities. In addition to the core steel trading business, the company expanded into other trading areas. Diversification and internationalization helped to insulate the company during the economic ups and downs of the 1970s and 1980s. However, a failed crude oil futures transaction in the late 1980s plunged the company into an existential crisis.[16] This drastically reduced the company's capital base by 600 million Deutsche Mark.[17] Due to his responsibility for this division, Peter Henle left the company's management.
Deutsche Bank, which provided 400 million deutschmarks to cover the losses, took over the company and converted it into a stock corporation. This meant that Klöckner & Co was no longer family-run. During the rescue measures, the traditional company became the property of VIAG.[18] Under new management, Klöckner & Co was active during the 1990s in steel, PC products, chemicals, textiles, and mobile buildings while also expanding its international presence in the steel sector.[19]
In spring 1997, Klöckner & Co announced its decision to concentrate on its core business: steel and metal trading.[20][21] While continuing to expand its stockholding steel trading in Europe, the group divested activities that were no longer part of its core business.[22]
In 2001, Klöckner & Co was sold to the Balli Group, a British materials trader.[23] The Iranian owners of Balli took over the group for around €1.1 billion. Two years after the takeover, Balli sold 94.5% of Klöckner & Co to WestLB and 5.1% to Hamburgische Landesbank.[24][25]
