Background and Motivation
Thyssenkrupp is facing a profound restructuring aimed at increasing the efficiency and profitability of the group. The steel division has recorded significant losses in recent years, underscoring the need for a strategic realignment. In the second quarter of 2024/25, the steel division slipped into the red with a deficit of 23 million euros, placing heavy pressure on Thyssenkrupp’s adjusted operating result.
Current Developments in the Steel Business
One-fifth of Thyssenkrupp’s traditional steel business has already been sold to Czech billionaire Daniel Křetínský. Negotiations are underway for the sale of another 30% to his holding EPCC. Criticisms include the pension obligations of the steel company, which complicate the sale.
Impact on the Market and Investors
The potential sale of the majority of the steel division could significantly affect the market for steel products in the German-speaking region. It could lead to consolidation in the steel sector and change competitive conditions for other steel manufacturers. Investors could benefit from a clear strategic direction and a potential improvement in the group’s profitability, while simultaneously having to consider the risks of restructuring.
Employment Situation and Social Implications
The restructuring of Thyssenkrupp could also have significant social impacts. In the steel sector, around 11,000 of the 27,000 employees are expected to lose their jobs in the next five years. The closure of plants, such as the planned earlier closing of one of the Bochum steelworks, could heavily impact the regional economy and the affected communities.
Strategic Realignment of Thyssenkrupp
Thyssenkrupp plans to consolidate its industrial sectors into a financial holding to facilitate future sales of divisions. This move is intended to simplify the corporate structure and accelerate decision-making processes to enhance profitability. The independence of the steel and marine engineering divisions is part of this strategy, aimed at positioning the remaining business areas with value.