Germany’s largest steel company is undergoing a transformation: capacities are being reduced and independence is becoming more and more important. Employees are excited about the “business plan”.
What should the future of Germany’s largest steel producer Thyssenkrupp Steel Europe (TKSE) look like? The company’s supervisory board will discuss this on Friday. Under the leadership of chairman and former vice-chancellor Sigmar Gabriel, it will deal with a restructuring program that has not yet been published. The so-called business plan was drawn up by TKSE management in recent months.
The division, which is about to become independent, is 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 also involve job cuts, the company announced in the spring. Details are still open. However, redundancies for operational reasons are to be ruled out. According to information from dpa, details of the financial resources with which the group intends to make the steel division independent are still disputed.
Steel division employs 27,000 people
Around 27,000 of the group’s 100,000 employees work in the Thyssenkrupp steel division, 13,000 of them in Duisburg. An employment guarantee applies until the end of March 2026.
Thyssenkrupp CEO Miguel López justified the planned restructuring of the steel division in May with, among other things, insufficient demand, high energy costs, overcapacity and cheap imports from Asia. The division, which is highly dependent on the economy, has been the focus of Thyssenkrupp for years. In addition, the entire steel industry is facing fundamental change: While it has previously been one of the largest emitters of carbon dioxide, it is to be converted to climate-neutral steel production in the coming years at a cost of billions.
Billionaire Kretinsky now holds 20 percent
Last week, the energy company EP Corporate Group (EPCG) owned by Czech billionaire Daniel Kretinsky acquired a 20 percent stake in TKSE. The parent company Thyssenkrupp described this as “important progress in the process of reorienting Thyssenkrupp Steel Europe and achieving complete entrepreneurial independence.” EPCG wants to acquire further shares. The goal is a joint venture in which both companies own half. The strategic partnership will primarily focus on energy supplies.
The current 11.5 million tonnes production capacity also includes the capacity produced by the Duisburg company Hüttenwerke Krupp Mannesmann (HKM) for Thyssenkrupp. Thyssenkrupp Steel has a 50 percent stake in HKM, the steel group Salzgitter has a 30 percent stake and the French tube manufacturer Vallourec has a 20 percent stake. A sale of the company is being considered – there is already a potential buyer. Almost 3,000 people work at HKM.
IG Metall demands location guarantees
The debate about the planned changes in the steel division had caused unrest among the workforce in recent months. IG Metall called for major protests on several occasions. In the event of restructuring, demands were made for compliance with collective agreements, no redundancies, site guarantees beyond 2026 and a continuation of the transformation plans towards climate-neutrally produced steel.
News Thyssenkrupp
Source: Stern
