- Thyssenkrupp Steel: Board of Supervisors discusses re-establishment
What will the future look like for Germany's largest steel producer, Thyssenkrupp Steel Europe (TKSE)? The company's supervisory board, led by former Vice Chancellor Sigmar Gabriel, will discuss this on Friday. They will consider a yet-to-be-publicly-disclosed restructuring program, known as the Business Plan, which has been developed by TKSE's management over the past few months.
The standalone division is set to significantly reduce its production capacity in Duisburg, from the current 11.5 to 9.0 to 9.5 million tons per year. This will involve job cuts, as the company announced earlier this year. Details are still unclear, but forced redundancies are reportedly ruled out. The financial details of the company's plans to send the steel division into independence are still under discussion.
The steel division employs around 27,000 of the company's total 100,000 employees, including 13,000 in Duisburg. A job guarantee is in place until March 2026.
Thyssenkrupp CEO Miguel López attributed the planned restructuring to low demand, high energy costs, overcapacity, and cheap Asian imports. The steel division has been a focus for Thyssenkrupp for years due to its strong dependence on the business cycle. Furthermore, the entire steel industry is facing a fundamental transformation: having been one of the largest emitters of carbon dioxide, it is now set to be rebuilt with billions of euros to achieve climate-neutral steel production.
Billionaire Kretinsky now holds 20 percent
Last week, the energy company EP Corporate Group (EPCG) of Czech billionaire Daniel Kretinsky acquired a 20 percent stake in TKSE. Thyssenkrupp described this as "an important step in the process of realigning Thyssenkrupp Steel Europe and achieving full entrepreneurial independence." EPCG plans to acquire further shares, aiming for a joint venture with both companies owning 50 percent each. The strategic partnership will focus on energy supplies.
The current production capacity of 11.5 million tons also includes the capacities produced by the Duisburger company Hüttenwerke Krupp Mannesmann (HKM) for Thyssenkrupp. Thyssenkrupp Steel holds a 50 percent stake in HKM, with the steel company Salzgitter holding 30 percent and the French tube manufacturer Vallourec holding 20 percent. A sale of the company is being considered - a potential buyer has already been identified. HKM employs around 3,000 people.
IG Metall demands location guarantees
The debate over the planned changes in the steel division has caused unrest among the workforce in recent months. The IG Metall union has repeatedly called for large-scale protests. They demand adherence to collective agreements, no forced redundancies, location guarantees beyond 2026, and the continuation of transformation plans towards climate-neutral steel production.
Thyssenkrupp announcements
- The restructuring program being considered by Thyssenkrupp's supervisory board includes plans for the steel division, aiming to make it more independent and climate-neutral through significant investments.
- The steel industry's transformation, driven by the need for climate-neutral steel production, poses opportunities for companies like TKSE to innovate and manufacture eco-friendly steel products in the future.
