Krogman Metals has more than doubled its warehouse facilities in Rotterdam to cater to the local end-user market.
The Dutch supplier Krogman Metals envisions emerging as a premier flat product supplier in Europe, with a goal of achieving a turnover of EUR 95 million across its affiliated companies within the next three years. Central to this ambitious mission is its commitment to providing comprehensive stock management services to clients by mitigating their risk and ensuring seamless operations. Stainless Steel World met with CEO Furkan Beltek at the company’s Rotterdam warehouse to learn about Krogman Metal’s rapid growth in the international market.
By Joanne McIntyre, Stainless Steel World
Over the past eight years, Furkan Beltek has developed Krogman Metals into an expert supplier with strong ties to reputable European and Asian manufacturers.
“Our rapid growth and success in the industry can be attributed to three main factors. Firstly, we maintain strong relationships with our suppliers, consistently delivering on our promises. Early on, we determined our strategy would be to supply only to each country’s leading stockists and traders. Secondly, we prioritise client satisfaction by ensuring timely delivery, competitive pricing, and high-quality products. Our proactive sales teams swiftly adapt to market demands. Thirdly, our diverse stock offerings cater to varying client needs, including back-to-back options for cost efficiency or immediate dispatch from our warehouses. This strategic approach has solidified our position as a trusted supplier.”
In addition to Krogman’s competitive pricing and expedited lead times, its extensive network includes twelve distribution centres worldwide, with multiple warehouses. “This global presence enhances our ability to meet customer demands while flexible payment options ensure a seamless and customer-centric experience.”
Product Portfolio
Krogman Metal’s product portfolio encompasses products and grades tailored to meet diverse industry requirements. It includes prime and second-grade sheets and coils, catering to various specifications and applications. Furkan has seen growth in demand for all the grades Krogman offers over the past two years. “We offer an extensive selection of grades, including 304L, 316L, 430, 321, and 409L, covering both austenitic and ferritic stainless steel compositions, ranging in thickness from 0.20mm to 6 mm, although we can source materials up to 20mm. This comprehensive range ensures that we can provide solutions to meet the unique needs of our clients across different sectors.”
“Second-grade products represent a significant segment of our business, offering distinct advantages to our customers,” Furkan continues. “These products allow us to offer customers cost-effective solutions without compromising on quality.”
“We source our prime material from the main mills in Asia and Europe. Secondgrade materials are also sourced from European mills, although we’ve noticed that this source has decreased in recent years. Fortunately, our customers, i.e. large stockists with warehouses, are also a source of second-grade materials, allowing us to maintain a significant tonnage for trading.”
Strategy for success
A key factor to Krogman Metals’ success is the trust and close contact that the company has with its suppliers – some of the leading mills in Europe and Asia – and its customers, who are large distributors and end users.
The years 2022-2023 were tough for many traders who opted to reduce stock and ride out the downturn. Furkan’s response was the opposite, as he pursued a bold strategy of investing in new offices, staff and activities to help their customers succeed.
“Difficult times demand innovative solutions. We decided to open new offices in Italy, Germany and Canada. We also took some risks in clearing materials for our clients who, given the difficulties with logistics, rising costs and anti-dumping measures, were understandably wary of importing products. We took it upon ourselves to shoulder that risk, carrying out imports and customer clearance and delivering their orders on time with the duty paid. It added value to our business in terms of increased tonnage, helped our customers enormously, and propelled the growth of our company.”
Main industries & applications
With a global reach, the Krogman team serves a diverse array of industries. In the end-user market spanning the Netherlands, Belgium, France, Morocco, Germany, Canada, and Italy, its products find applications in over 21 industries, ranging from laser cutting and fabrication, HVAC and chimney systems to water tank systems, kitchen systems and food processing industries.
“Notably, we have had the privilege of supplying stainless steel for the external casings of the new Mercedes trucks (Actros) as part of a significant contract totaling 1400 tons in 2022,” smiles Furkan.
“Additionally, in Morocco, we secured a tender to renew the entire stainless steel covers at the Casablanca airport, underscoring Krogman’s commitment to delivering quality solutions across diverse projects and markets.”
“We pride ourselves on providing comprehensive services, including direct delivery to our client’s end customers, offering an invaluable addon service. We also offer customised packaging solutions featuring clients’ logos on packaging to enhance their brand identity.”
In countries such as the Netherlands, Morocco, and Canada, where it engages directly with end-users, Krogman maintains well-stocked warehouses supplying stainless steel sheets, which it is also happy to supply in small quantities.
“This strategic approach allows us to effectively serve diverse markets while meeting the unique needs of our clients.”
Global expansion
Krogman Metals focuses on supplying large, reputable wholesalers and traders. “Our stock is worldwide, which allows us to position ourselves between the Asian and European manufacturers and the big importers in the supply chain,” explains Furkan. “Our primary customer base consists of reputable stockist companies in key markets such as Germany, UK, Brazil, Italy, Spain, the Czech Republic, Bulgaria, Portugal, Poland, Canada, and Colombia. Additionally, we supply stainless steel to various countries, including Algeria, Egypt, Bosnia, Serbia, Albania, and Moldova.”
With staff around the globe, Krogman Metals is well-placed to serve customers locally in their own language.
“In addition to our sales teams in Turkey, Germany, Italy, Morocco and the Netherlands, last year we established a new office and warehouse facility in Canada with five full-time staff members. This services our North American clients and is supported by an office in Delaware, USA.”
Krogman’s venture into North America
In 2022, Krogman Metals set its sights on the North American market. After meticulous market research, Canada emerged as the ideal entry point due to its stable political climate and favourable external factors.
“The establishment of our Canadian subsidiary in March 2023 marked a significant milestone in our North American expansion strategy,” explains Furkan. “With an office in Vancouver and warehouses strategically positioned on both the east coast in Ontario and the west coast in British Columbia, we optimised accessibility and service coverage for our valued clients.”
“Navigating the complexities of the Canadian market, we recognised the pivotal role of manufacturers and metal fabricators, integral components of the nation’s industrial landscape.
Our commitment to collaborative partnerships prevailed despite initial challenges characterised by lukewarm responses from industry giants. By fostering synergistic relationships with wholesalers and diligently meeting client demands, we forged meaningful connections within the Canadian stainless steel ecosystem.”
“Today, we proudly supply major wholesalers in Canada who are esteemed members of the top companies in the industry. With a diverse clientele, including prominent manufacturers of brewery tanks, wine barrels, kitchen systems, and HVAC components, our presence in Canada has been met with resounding approval.”
Meanwhile, the company’s exploration of the US market led to the recent establishment of its US entity. “We’re proud to unveil the launch of Krogman in Delaware, USA with a new office and sales team. We also plan to establish a dedicated warehouse facility in Delaware to further enhance our capacity to serve our growing customer base. Looking ahead to 2025, we envision further advancements in our North American operations. Plans are underway to acquire state-of-theart machinery, including a decoiler and slitting machine, facilitating locally streamlined cut-to-size solutions. Additionally, we anticipate introducing a per-sheet sales model through an online channel, providing enhanced convenience and accessibility for our valued clientele across Canada and the United States.”
Recent investments
In addition to its new office and warehouse facilities in Canada, last year, Krogman Metals also established a warehouse in Morocco and set up a new company in Italy, further expanding its reach and strengthening operational infrastructure.
Furkan continues: “In June, our new warehouse in Rotterdam, the Netherlands, will open to cater to the end-user market. This state-of-the-art facility will feature an advanced operational system, from unloading to warehousing to loading, ensuring optimal efficiency and service excellence.” “Moreover, we are focused on increasing our sales efforts in key regions such as West Africa, North Africa, and North America, with plans to have a dedicated account manager in West Africa to support our expansion initiatives. These investments and expansions underscore our commitment to growth, innovation, and delivering exceptional value to our clients worldwide.”
Value-added services
Krogman’s commitment to providing value-added services extends to various aspects of its operations, ensuring enhanced customer satisfaction and versatility in offerings. By mid-2025, its new decoiling machine in Rotterdam will be online, facilitating efficient processing of materials to meet customers’ specific requirements. The company also offers laser PVC coating services, providing added protection and customisation options for materials. It also recently expanded delivery services to include per-sheet delivery to clients in the Netherlands, Belgium, Germany, and Morocco, enhancing convenience and flexibility.
“Our facility in Casablanca, Morocco, is also equipped with a PVC coating machine, further augmenting our service offerings and catering to the diverse needs of our clientele,” explains Furkan. “These value-added services exemplify our dedication to innovation and customer centricity, reaffirming our position as a trusted partner in the industry.”
Focus on sustainability
Krogman Metals has implemented a comprehensive strategy to minimise its environmental impact while promoting social responsibility.
“Socially, we ensure a safe, diverse, and inclusive work environment and avoid gender bias or stereotypes in our work culture,” explains Furkan. “Environmentally, we have modernised our resource management practices, aligning with global standards, aiming to reduce emissions and ensure a sustainable future.”
“In supply, we monitor and ensure suppliers follow CSR guidelines with adequate environmental policies. Moreover, we prioritise ethical sourcing by enforcing stringent CSR guidelines for our suppliers. To further reduce our carbon footprint, we advocate for environmental consciousness throughout our supply chain, encouraging accurate emission calculations and engaging in carbon offsetting initiatives with reputable organisations. Additionally, we are dedicated to energy conservation and responsible water usage, implementing measures to minimise energy consumption.”
“Our waste management practices also reflect our commitment to sustainability, as we are committed to the responsible disposal of waste. We actively encourage clients to implement recycling programs for end-of-life products, leveraging the highly recyclable nature of stainless steel.”
As we finish our tour of the Rotterdam warehouse, Furkan stresses the importance of relationships in his business. “Within five years we would like to become one of the top three stainless steel flat products suppliers in Europe. We offer fast delivery at a costcompetitive price. Just as importantly, we are a reputable company that builds long-term relationships with our customers. They know that Krogman Metals is a name they can trust.”
Establishing a new warehouse in Rotterdam signifies a strategic move by Krogman Metals to serve end-users in the Netherlands better. The facility facilitates back-to-back business arrangements with suppliers, mitigating costs and enhancing efficiency. In addition, the company has appointed a seasoned account manager in the Netherlands, bringing valuable expertise and insight to the local market.
“We are excited to announce that a decoiling machine will be available at this location by 2025, for use on coils up to 3 x 1500 mm. This will further bolster our operational capabilities and service offerings,” says Furkan. “These initiatives underscore our commitment to optimising our operations and providing unparalleled support to our clients in the region.”
About this Featured Story
This Featured Story appeared in Stainless Steel World May 2024 magazine. To read many more articles like these on an (almost) monthly basis, subscribe to our magazine (available in print and digital format) – SUBSCRIPTIONS TO OUR DIGITAL VERSION ARE NOW FREE.
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