Thyssenkrupp Plans to Shed More Business Divisions - Thyssenkrupp intends to offload additional business divisions.
Thyssenkrupp Set to Sell Major Business Units and Exit Steel Trading
German industrial conglomerate Thyssenkrupp is planning to sell its historic steel division and exit the steel trading business, the company revealed. Beyond steeling itself away from trading, preparations for this exit are already underway, according to the company. The steel division, which employs 16,000 people and achieved a recent annual turnover of 12.1 billion euros, is earmarked for a stock market listing.
In a broader move, parts of the automotive supply division are also slated for closure or sale. In the best-case scenario, only a shell of the division will remain, as per a manager's comments to Bild am Sonntag. The plans are subject to the approval of the supervisory board, but sources indicate no significant opposition.
Thyssenkrupp announced that it is undergoing a significant restructuring, aiming to transform into a strategic holding company by September 30, 2025. Individual business units are expected to attract outside investors and gain greater operational freedom. For instance, Thyssenkrupp Steel Europe is seeking a 50/50 joint venture with the equity group EPG, while Thyssenkrupp Marine Systems is planning a partial spinoff and stock listing. Other units, such as Material Services, Automotive Technology, and Decarbon Technologies, are expected to enter the capital markets soon[1][2][4].
Reports regarding the extension of CEO Miguel López's contract have not been confirmed by the company[4]. However, López has emphasized that the restructuring will enable the group to maintain its strategic direction, implying his continued role in its leadership.
Thyssenkrupp Steel Europe is actively restructuring its business by terminating a significant supply contract with Hüttenwerke Krupp Mannesmann (HKM), with the intention of breaking economic ties and potentially selling its shares in HKM. The steel division has also completed the sale of its electrical steel business in India to an Indo-Japanese consortium and is progressing with infrastructure projects such as a direct reduction plant and quay improvements. The company anticipates stable sales, improved EBIT, and a return to profitability for fiscal year 2024/2025[3].
Thyssenkrupp's restructuring strategy includes the potential sale of its steel division, aiming to transform into a strategic holding company by 2025, which may attract investors from the finance and business industry. The company's employment policy could be significantly impacted as parts of the automotive supply division are planned for closure or sale, affecting thousands of employees.
