- Conflict over Steel: Thyssenkrupp's Top Inspector Resigns Due to Russian Worm Incident
Following the departure of three key figures from Thyssenkrupp's steel division's board, the parent company's supervisory board chair, Siegfried Russwurm, has openly criticized the steel division's management. "Despite their commendable efforts, the management of Thyssenkrupp Steel has failed to come up with viable solutions to the structural challenges and economic difficulties of the steel industry, not just in recent months but for years," Russwurm stated on Thursday evening. The chairman is also president of the Federation of German Industries (BDI).
The underperforming steel division is set for a restructuring and a move towards independence. Tensions between the corporate leadership and the steel management have been high for weeks, centering around the financial framework for the division's independence transition. It was revealed on Thursday that the steel division's CEO, production manager, and personnel manager were stepping down with immediate effect, alongside four supervisory board members who announced their resignations. Among them was former chairman Sigmar Gabriel, who accused Thyssenkrupp CEO Miguel López of orchestrating a smear campaign against the steel board, implying inaction from Russwurm.
In his statement, Russwurm highlighted that the steel division had repeatedly missed its own goals, including this financial year. Implemented restructuring programs had fallen far short of the promises made by the steel division's management. "Thyssenkrupp Steel has been draining liquidity at the expense of its own future, the other businesses, and the corporation's owners, without taking control of the situation under its previous leadership," Russwurm stated. The three long-standing board members departed by mutual agreement.
The vacant board positions will be filled "promptly" through a structured process. Remaining board members Dennis Grimm (Technology) and Philipp Conze (Finance) will continue to manage the steel division's operations. Grimm will take on the role of board spokesperson. Decisions on the replacements for the vacant supervisory board seats and Sigmar Gabriel's successor as supervisory board chairman will be made soon.
The steel division has been plagued by economic instability and competition from cheap imports for an extended period, necessitating capacity and workforce reductions. The future implications for the employees following the board and supervisory board reshuffle remain uncertain. The supervisory board had intended to draw up a financing plan for the next two years, but this did not materialize.
Thyssenkrupp's steel division is Germany's largest steel producer, employing 27,000 people, with 13,000 working in Duisburg. The works council expresses concerns about the potential halving of the plant and the loss of thousands of jobs amidst the restructuring plans.
The works council has expressed concerns about the potential impact of the steel division's restructuring, including the possible halving of the plant and the loss of thousands of jobs. The departure of Sigmar Gabriel from the supervisory board and the criticisms from the parent company's chair, Siegfried Russwurm, have put further strain on the relationship between the works council and the corporate leadership.
