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Value chain

At Klöckner & Co, we regard sustainability as a holistic concept that extends across the entire value chain. From purchasing to warehouse management and various services, as well as logistics and distribution, we consider the improvement of operation processes and results for our customers a top priority.

Beyond the activities inside our company, we also feel responsible for the adjacent links of the value chain. As a steel and metal distributor with international operations,
Klöckner & Co maintains relationships with customers, suppliers, steel and metal producers, logistics companies and service providers around the globe. In our numerous supply and service relationships, it is important to us that we always operate within the scope of the applicable laws and without tolerating any leeway for violations.

We also include our contractual partners outside of the Company and trust that they subscribe to these same standards as specified in our Code of Conduct.

Compliance

We consider law-abiding conduct in terms of the company´s welfare to be of significant importance. Our employees in all countries are trained to understand anti-trust law and anti-corruption issues. We also include our contractual partners outside of the company and trust that they also subscribe to these same standards. They are specified in our Code of Conduct:

  • concerning ethical and legal business practices
  • anti-corruption
  • ban on child labor
  • observing regulations concerning occupational safety
  • protecting the environment

You will find more information about this topic here.

Responsible Sourcing

Klöckner & Co SE and its subsidiaries (“Kloeckner”) are committed to ethical and compliant business. This includes prudent and responsible sourcing of our products.

Kloeckner will not knowingly provide any direct or indirect support to non-state armed groups or security forces that illegally control or tax mine sites, transport routes, trade points, or any upstream actors in the supply chain. Similarly, Kloeckner has a comprehensive policy in place that prohibits its employees and agents from engaging in corruption and bribery. Kloeckner will never accept any forced, bonded (including debt bondage) or indentured labor, involuntary prison labor, slavery or trafficking of persons. We expect the parties in our supply chain to follow the same principles.

With the enactment of the Dodd Frank Wall Street Reform and Consumer Protection Act and specifically, the Conflict Minerals Rules, Kloeckner exercised and continue to exercise due diligence on their supply chain custody to determine whether any Conflict Minerals are used to manufacture the products and if so, whether they originate in the Democratic Republic of Congo (“DRC”) or its adjoining countries (together with the DRC, the “Covered Countries”). Presently, these adjoining countries include Angola, Burundi, Central African Republic, the Republic of the Congo, Rwanda, South Sudan, Tanzania, Uganda, and Zambia. The Conflict Minerals consist of columbite-tantalite, cassiterite, gold, wolframite, or their derivatives, which are initially limited to tantalum, tin, and tungsten.

Kloeckner will purchase products only from those suppliers who have confirmed that the materials they deliver to us do not contain any of the Conflict Minerals" originating from the Covered Countries

Supplier Requirements:

Where possible, Kloeckner will incorporate the above principles of responsible sourcing of Conflict Minerals into our contract terms with suppliers and will work with our suppliers to create awareness of these issues within our supply base. We will make our policy available to our suppliers and expect them to adopt similar positions or policies with respect to their own supply chains.

Kloeckner encourages its suppliers that manufacture components, parts, or products containing Conflict Minerals to procure those materials from conflict-free sources. We expect our suppliers to adopt, implement and communicate to sub-suppliers their positions and policies regarding Conflict Minerals, and where possible, require their down-stream suppliers to adopt and implement similar positions and policies. Kloeckner suppliers are expected to work with sub-suppliers to trace conflict materials at least to the smelter level and encourage the use of a standard reporting process (e.g. the EICC-GeSI Conflict Minerals Reporting Template). Kloeckner reserves the right to request its suppliers to provide further evidence of their conflict mineral supply chain, including down to the mine level, if necessary. We expect suppliers to maintain such traceability data for five years and provide this information to Kloeckner upon request.

Suppliers are encouraged to support industry efforts to enhance traceability of Conflict Minerals and responsible practices in their global supply chains.

Our approach is to establish long-term relationships with suppliers and, when feasible, to seek sustainable solutions while working with suppliers to drive improvements. Suppliers acting contrary to Kloeckners’ position described herein must commit to and implement a corrective action plan within a reasonable timeline. Kloeckner reserves the right to require suppliers to provide support for the effectiveness of such corrective actions and to conduct supply chain assessments. A supplier’s continued non-conformance and failure to take corrective actions may lead to additional actions, up to and including termination of the business relationship.

Quality Management

We believe that improving service and product quality in a continuous manner is the key to sustained customer satisfaction. This is why a committee at European level meets on a regular basis to discuss quality management topics and coordinate activities related to quality management. The key aspects of our quality management are health, occupational safety and the environment.

One of the first joint projects involves developing a uniform list of criteria across countries to measure the quality of delivered goods. A pilot project is currently being carried out in one of our major sites.

A large number of our country organizations are certified according to the ISO 9001 quality standard. The sites with strong ties to the automotive industry, such as Becker Stahl-Service and our site in Velten near Berlin, also hold ISO TS 16949 automotive standard certification. Furthermore, the Environmental management standard, ISO 14001, has been implemented in some parts of the Group.

Uniform procedures for European logistics

Since the end of 2011 we have introduced uniform procedures for logistics in our European warehouses. This is how we want to establish already tried-and-tested, optimized processes in all our countries in the future. It involves making optimum use of warehouse space, improving servicing and maintenance of plants and equipment, and general topics related to human resource management and employee motivation.
The procedures set a shared standard to promote efficiency, transparency, order and safety. The common goal of our activities is to standardize logistics processes, increase efficiency, and improve the reliability of deliveries for our customers.