Handelsblatt

Journal: Handelsblatt, No. 025 dated Feb. 5, 2010

On Monday, the 51-year-old will have completed his first 100 days as CEO of Klöckner - and his results are impressive. For example, by purchasing Becker Stahl-Service he undertook the largest acquisition since Klöckner went public. The acquisition of the Swiss Bläsi Group followed a short time later.
Rühl is a man full of ambition. Even at age 30, he knew that he wanted to be and was capable of becoming CEO. He reached his goal in his mid-thirties when he became the head of Rütgers Automotive. After successfully restructuring the company and subsequently working at Babcock Borsig and the consultancy firm of Roland Berger, he arrived at Klöckner in Duisburg, where he initially became CFO in July 2005.

As of November, he is now also CEO and must step out of the shadow of his predecessor, Thomas Ludwig. Ludwig, who was highly esteemed in the tightly knit industry and who was referred to as “Mr. Klöco”, had taken the Group public in 2006. Rühl, wearing a dark suit, pocket square, and a matching tie with mythical creatures, began explaining in a confident manner. “I very much liked the work as CFO, and as CEO it is even more fun,” he says. Since then, he has been using the new, comprehensive responsibility to leave his mark on Klöckner. Personnel development is to receive greater emphasis and the Holding is to have more say in the operative business. To date, the country operations of the MDAX-member Group have acted independently. Rühl wants to create synergies via bundling in the areas of procurement and logistics.

The manager, who stands nearly two meters tall, is keeping further purchasing options open. “We have the strength to orchestrate additional acquisitions,” Rühl tells Handelsblatt. This is true both financially and with regard to management capacities. “We still have potential. Of the €600 million that we had set aside for acquisitions, more than half is still available.” Rühl continues to put the focus on the existing markets of Europe and North America. He sees the need to catch up in the U.S., where Klöckner is in tenth place among the largest steel distributors. In European countries, the Group is either in first or second place among steel distributors. Its strategy is aimed at the creation of synergies through acquisitions. There is no organic growth in the steel business in Europe and North America, says Rühl.

The Graduate Commercial Engineer therefore approaches new markets carefully. “We are closely following the development in the BRIC countries (Brazil, China, India, Russia).” The steel industries in these emerging markets register enormous growth rates in steel sales. The head of Klöckner is keeping a particularly close eye on the world’s largest steel market: “In China, we are reviewing possible market entry strategies,” he says. Over the next several years, the Group wants to gain a foothold in the market there. “One possibility for an expansion into the most important steel market could be the supply of existing customers in Europe and North America.” An acquisition would not be necessary in this case. Rühl also sees potential in Russia. “We will wait and see, however, how the economy continues to develop.” Russia is one of those countries hit especially hard by the economic crisis.

After the dramatic slow-down last year - revenue shrunk by 44% in the first three quarters to three billion euro - the father of three views 2010 a little more confidently, even though he thinks the crisis has not been completely overcome. Revenue should grow by approximately ten percent. Although Klöckner will not be able to achieve a satisfactory result, “it will be significantly better than in 2009”.

(Source: Handelsblatt, No. 025 dated Feb. 5, 2010, page 71, author Martin Murphy)