Benteler sheds distribution business to focus on auto parts development

Benteler sheds distribution business to focus on auto parts development

Tier 1 automotive components, materials supplier redoubling its focus on product development

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Salzburg, Austria – Materials and components supplier Benteler, a company with automotive facilities in Michigan, Indiana, and South Carolina, is selling its steel distribution division to Netherlands-based Van Leeuwen Pipe and Tube.

Companies did not disclose terms of the deal which should close before the end of the year.

Benteler officials said dropping the distribution business will allow them to focus on the automotive industry which makes up about 80% of the company’s sales. Digitalization, new technologies, and changes in production methods in the automotive industry have provided new opportunities.

Benteler Group CEO Ralf Göttel said, “The Van Leeuwen Pipe and Tube Group is an ideal partner for this transaction and perfectly equipped to take over BENTELER's profitable distribution business.”

Core Beneteler capabilities include tube manufacturing, forming, joining, extrusion, assembly, and logistics. Its products can be found in almost every car worldwide. The portfolio ranges from tubes for airbags and axles, for example, as well as components and modules for chassis, body-in-white, and engine and exhaust applications, to modular future technologies, such as electromobility system solutions.

Göttel said, “We know how to form and join metal like no one else. The decision to concentrate on our core business is based on our Group's 2025 strategy which will enable us to grow profitably and to strengthen our competitive position. In future, we will further develop our core business and complement it with solutions for electromobility such as the Benteler Electric Drive System.”

Benteler is a family-run company, founded in 1876.