Business units of Thyssenkrupp to be sold off in upcoming deal - Thyssenkrupp Plans to Sell More of Its Operating Units to Streamline Operations
Thyssenkrupp plans significant changes as the industrial conglomerate contemplates selling key business units and spinning off others. According to reports, the traditional steel division and steel trading business may be sold, with preparations already underway to exit the latter. The steel division, responsible for €12.1 billion in revenue last year and employing 16,000 people, is expected to be floated on the stock market.
Additionally, plans suggest a portion of the automotive supply division will be closed or sold, with only a skeleton crew potentially remaining. Changes are also expected within the leadership, with CEO Miguel López's contract reportedly set to be extended, though Thyssenkrupp declined to comment on this matter.
Within the steel division, Thyssenkrupp is looking to transform the business into a more independent entity. The company has agreed in principle with the IG Metall trade union to restructure the steel division, with the aim of reaching a collective bargaining agreement by summer 2025. The restructuring includes a 50/50 joint venture between Thyssenkrupp Steel Europe and EPG, focusing on strategic partnerships and decarbonization.
As part of the broader plan, the Automotive (Automation Technology) division is set for spin-off to prepare for capital market opportunities and potential outside investment. The aim is to gradually make these and other core segments (including auto parts and green technologies) into standalone businesses operated under a holding company structure, with Thyssenkrupp retaining controlling stakes in most areas.
Thyssenkrupp's restructuring strategy is aimed at enhancing entrepreneurial flexibility, attracting investment, and positioning each segment for independent growth while maintaining a controlling interest in most business areas. The supervisory board is expected to approve CEO Miguel Lopez's contract extension on September 16, and Lopez is expected to present the final strategic target model to the board by the end of the current fiscal year.
In summary, Thyssenkrupp's restructuring plans focus on transforming the company into a holding structure with a strategy to spin off or open up key business segments to outside investment. The steel and automotive supply divisions, along with potential executive changes, are central to these efforts.
- Thyssenkrupp's community policy, as part of the restructuring, will involve transforming the steel division into a more independent entity with a focus on strategic partnerships, decarbonization, and potential spin-off to prepare for capital market opportunities.
- In the manufacturing industry, Thyssenkrupp's employment policy includes plans to sell or close portions of the automotive supply division, with only a skeleton crew potentially remaining, and potentially spinning off the Automotive (Automation Technology) division to attract investment and position it for independent growth, while maintaining a controlling interest.
