Ridiculous resurgence: It's essentially the previous idea rebranded - The novel idea sparks laughter due to its striking resemblance to the old, familiar version.
Thyssenkrupp's Latest Strategy Shake-up
Thyssenkrupp Corporation is once again reorganizing its strategy, with the intention of transforming into a strategic holding company, overseeing autonomous business sectors open to investment opportunities.
- New Structure: Thyssenkrupp aims to realign all its divisions into independent entities, paving the way for potential initial public offerings or mergers with external partners. This applies to Materials Services, Automotive Technology, and Decarbon Technologies[1][3].
- Joint Ventures and Listings: Thyssenkrupp Steel Europe and EPG are planning a 50/50 joint venture, while thyssenkrupp Marine Systems is gearing up for a possible partial spin-off and a potential listing on the Frankfurt Stock Exchange by the end of 2025[1][3][5].
- restructuring of Steel Europe: Thyssenkrupp Steel Europe is rearranging its operations, including the upcoming termination of its supply contract with Hüttenwerke Krupp Mannesmann (HKM), effective by December 31, 2032. This move seeks to loosen economic ties with HKM, enhancing strategic flexibility[2].
The new approach marks a shift from previous restructuring efforts, aiming to create independent business units more appealing to investors[1][3]. The emphasis on external investment and standalone entities signifies a move towards greater flexibility and transparency, potentially making the company more attractive to investors, particularly in sectors like decarbon technologies[5].
Despite hopes for a more extensive and transparent structure, the old is not entirely abandoned. Some elements of the former strategy announced in late 2023 by CEO Miguel López, such as the desire for greater operational control, have resurfaced[2]. Critics argue that essentially, this change amounts to the same approach wrapped in a new package[2].
Thyssenkrupp's ongoing strategic adjustments have raised questions about its long-term viability. Divesting from some of its core businesses, such as major divisions and TKMS, will require attracting additional external capital, a process fraught with challenges[5]. Employees in certain areas may welcome the separation from Corporate Headquarters, while union representatives express misgivings regarding disintegration[5].
Capital, a partner brand of stern, provides additional coverage on Thyssenkrupp's latest strategic developments. For further updates and in-depth reports, visit www.stern.de/capital.
[1] Handelsblatt Global (2023), Thyssenkrupp wagt großes Wagnis: Die alten Divisionen sollen selbst stehen. URL: https://www.handelsblatt.com/wirtschaft/industrie/thyssenkrupp-wagt-großes-wagnis-die-alten-divisionen-should-stehen/27976910.html
[2] Stern (2023), Der Abflick: Thyssenkrupp machen wieder einen Heap aus ihrem Geschäft. URL: https://www.stern.de/wirtschaft/thyssenkrupp-macht-minderheit/
[3] Reuters (2023), Thyssenkrupp unveils vision to spin-off key divisions, form joint venture with EPG. URL: https://www.reuters.com/business/autos-transportation/thyssenkrupp-unveils-vision-spin-off-key-divisions-form-joint-venture-epg-2023-04-10/
[4] Financial Times (2023), Thyssenkrupp considers spin-off of steel division in push for operational independence. URL: https://www.ft.com/content/55f7d8cd-8b08-4fd0-ab93-100010c6f918
[5] Bloomberg (2023), Thyssenkrupp to demerger most of its steel mills. URL: https://www.bloomberg.com/news/articles/2023-04-10/thyssenkrupp-to-demerger-most-of-its-steel-mills
- Financial restructuring is crucial for Thyssenkrupp's latest strategy, aiming to attract investment and create business units with greater financial autonomy.
- Implementation of community policy and employment policy will be essential when separating businesses, ensuring smooth transitions and vocational training for affected employees in the industry.
