Thyssenkrupp Considers Major Restructuring, Potential Spin-Off of Steel Division
Thyssenkrupp’s CEO, Miguel López, has left the door open for the company to reduce its stake in its steel division to below 50 percent, according to a report by the “Welt am Sonntag”. This potential move would mark a significant shift for the German industrial conglomerate, which has been seeking to restructure its business in recent years.
In an interview, López stated that the company plans to reduce its stake in Thyssenkrupp Steel from its current 80 percent to 50 percent, but only after the necessary restructuring of the steel division is complete. This process, he explained, involves negotiations with the company’s employee representatives and the IG Metall trade union.
Once the restructuring is complete, Thyssenkrupp plans to pursue a 50:50 joint venture in the steel division, which would see the company’s stake in the division no longer fully reflected in its balance sheet. The CEO also hinted at the company’s plans for future spin-offs, stating that the next step would likely be the separation of its material services and automotive divisions, followed by the decarbonization technologies sector.
López emphasized the importance of establishing the market viability of these individual units before pursuing a spin-off, citing the company’s strong growth prospects in each of these areas. The CEO also expressed optimism about the potential for job creation in the future, as the company’s individual units grow and expand.
The potential spin-off of Thyssenkrupp’s steel division would mark a significant shift for the company, which has been seeking to restructure its business in recent years. The move is seen as a key part of the company’s efforts to adapt to a rapidly changing industrial landscape and to position itself for future growth.