Thyssenkrupp negotiates steel joint venture with EPH
Thyssenkrupp says it is holding "constructive and open-ended talks" with the energy company EPH regarding the planned spin-off of its steel division. A potential joint venture with Steel Europe, which EPH could support with its energy expertise, is being discussed, Thyssenkrupp announced in Essen on Wednesday. The concrete form of a possible joint venture is the subject of ongoing negotiations.
EPH is owned by the Czech billionaire Daniel Kretinsky. The group includes the lignite companies Mibrag and Leag in eastern Germany, which want to generate more climate-neutral electricity from renewable energies in the future.
The steel division of Thyssenkrupp is Germany's largest steel producer. It is to become climate-neutral. The first major step is the construction of a "direct reduction plant" for steel production in Duisburg, which is to replace a blast furnace. The plant, which will cost around three billion euros, will initially be operated with natural gas and later with increasingly climate-neutral hydrogen.
The success of CO2-neutral steel production is essentially dependent on the secure supply of large quantities of "green" energy at competitive prices, the company reported. "For this reason, thyssenkrupp is in discussions with potential strategic partners from the energy sector."
"If we get it right, we can significantly improve the competitiveness of Steel Europe and position the business for future green markets," said Oliver Burkhard, Chief Human Resources Officer. Co-determination plays an important role in this transformation. "It is closely involved in the talks on independence in a proven manner." After the talks with the EPH Group became known at the beginning of October, the IG Metall trade union warned against a "rush job at the expense of the employees".
The potential joint venture between Thyssenkrupp and EPH could significantly benefit from EPH's energy expertise in the Steel Industry. Trade unions, such as IG Metall, have expressed their involvement and concern in ensuring the employees' interests are maintained during this transformation.
Source: www.dpa.com
