Gabriel Sigmar is delivering a pitch towards Thyssenkrupp Steel
The leaders of Thyssenkrupp's steel division's supervisory board and management team have announced their resignations. Chairperson Sigmar Gabriel cited "differences" with CEO Miguel López and his recent "unusual attack" on the steel division's management, which he deemed a "significant breach of trust." Gabriel expressed doubts about maintaining a constructive relationship with López and the parent company's supervisory board chairman, Siegfried Russwurm. Moreover, three other members of the supervisory board also planned to step down.
The CEO of the steel business, Bernhard Osburg, along with the personnel director, Markus Grolms, and the Chief Operating Officer, Heike Denecke-Arnold, also tendered their resignations after signing separation agreements. Gabriel alleges that López put pressure on the steel division's board to resign due to his actions, despite the board's commitment to defending the steel company's interests and resisting unwarranted interference.
Russwurm, who serves as president of the Federation of German Industries (BDI), joined the criticism. He no longer felt confident that Thyssenkrupp AG's board and supervisory board were pursuing the original plan to maintain the steel division while also spinning it off.
Habeck and Wüst Mediate
The turmoil within the once-prominent steel company has reached Berlin. The Federal Ministry of Economics attempted to delay the meeting of the steel division's supervisors to allow for further discussions. Federal Economics Minister Robert Habeck and North Rhine-Westphalia Minister-President Hendrik Wüst sought a four-week postponement, according to sources in the economics ministry.
However, the meeting was held in Duisburg, presided over by former economics minister Gabriel, to discuss the division's future. Struggling with escalating prices and intensifying competition for years, the supervisory board had already pondered the division's next steps in early August but failed to reach a consensus.
The primary bone of contention revolves around the division's further financing. López criticized Osburg following the August meeting and insisted on his immediate submission of a "robust, sustainable, and financially viable business plan for realignment." Employee representatives have been warning for months about potential job losses due to restructuring efforts.
Thyssenkrupp has already agreed to sell 20% of its steel subsidiary to company EPCG, owned by Czech billionaire Daniel Kretinsky, with plans to transfer another 30%. The move has sparked concerns among employee representatives about potential job losses in the thousands. López and steel CEO Osburg are also embroiled in a disagreement about the amount of parent company's financial contribution to the subsidiary to secure its independence. Gabriel recently disclosed that the division estimates its financing needs to be around 1.3 billion euros higher than what the company is offering.
The MDax-listed companies in Thyssenkrupp's sector have been closely watching the developments within the steel division, expressing concerns about the potential impact on the overall industry. Despite the challenges, MDax companies see opportunities for partnerships or acquisitions in the steel sector, viewing the situation as a potential financial opportunity.
Amidst these ongoing negotiations and disputes, the supervisory board of the MDax-listed company Siemens AG has proposed investing in Thyssenkrupp's steel division, offering a financial boost to support the division's restructuring efforts and ensure its longevity.
