Thyssenkrupp: “Existence-threatening” – boss warns of metal demise | EUROtoday

Status: 19:54 | Reading time: 3 minutes

Thyssenkrupp boss Miguel Lopez sees his firm's metal division as a burden and proclaims powerful cuts for the section. “Steel is the origin of our company. It has a proud past – but also a very uncertain future,” mentioned the supervisor earlier than the Düsseldorf Business Journalists Association (WPV). “The situation is critical and without decisive countermeasures it could quickly become a threat to our existence.”

Thyssenkrupp as a complete can be in stormy waters as a result of issues within the metal sector – “with all the associated risks,” mentioned Lopez. “We need to get back into calmer waters, especially since we have waited far too long.” A partial sale of the metal division to the EP Corporate Group (EPCG) of Czech billionaire Daniel Křetínský is meant to assist with this. The Supervisory Board of Thyssenkrupp AG just lately determined towards the votes of the staff to promote 20 % of the shares. The decisive issue was the double voting rights of the chairman Siegfried Russwurm.

Later, EPCG will purchase an additional 30 % and set up a 50/50 three way partnership with Thyssenkrupp. This might be additionally to take away the metal subsidiary, which, based on Lopez, has burned by way of round three billion euros in free money circulate for the reason that 2018/2019 monetary yr, from the stability sheet. In any case, after the partial sale to Křetínský, Steel Europe will solely be listed as an funding.

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Lopez defends the truth that the investor entry was determined in a confrontational method with the works council and IG Metall, saying that there was time strain. “We need a sustainable solution – not at some point in the future, but now. The situation will not improve on its own, on the contrary.” This just isn’t a couple of non permanent financial downturn. “We have tangible structural problems in this area.” And the time issue performs a decisive position. “Because if we do nothing now, we risk far more.”

Meanwhile, the board of Steel Europe, led by its chairman Bernhard Osburg, has been requested to attract up a brand new marketing strategy for the division, which at present has round 27,000 workers. It remains to be unclear when the outcomes might be offered. Lopez at all times speaks of “as soon as possible”. But it’s clear that this plan will contain important cuts. “It's about a very big change,” stresses the Thyssenkrupp boss, who changed Martina Merz on the helm of the M-Dax firm nearly precisely a yr in the past.

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So far, solely a big discount in manufacturing capability on the fundamental plant in Duisburg has been introduced. Germany's largest steelworks is designed for a manufacturing quantity of round 11.5 million tons. In the long run, solely vegetation with a capability of round 9 million tons might be positioned there.

As a consequence, there may even be a “still unquantifiable reduction in jobs,” as Thyssenkrupp Steel Europe introduced a couple of weeks in the past. “The plan will outline the entire future of steel,” Lopez says of his expectations. This will contain capacities and the query of which merchandise and buyer teams to deal with sooner or later, in addition to the inexperienced transformation.

He mentioned he may perceive the staff' issues. But Thyssenkrupp is extra than simply metal. “We are talking about an industrial group with many different business areas and around 100,000 employees. Almost three quarters of them work outside the steel sector.” The metal enterprise should due to this fact not place any additional pressure on the group's different companies. “It must, like all other segments, be self-sustaining.”

But cuts are additionally looming in different areas. Performance there may be additionally worse than essential. “Unfortunately, the appeal of our brand is not backed up by corresponding financial performance,” says Lopez. “Our finances are not where they should be. In almost all businesses, we are below competitive levels.”

The Apex financial savings program is due to this fact to be expanded once more. So far, over 4,800 measures have been recognized that carry EBIT potential of 1.8 billion euros. But based on Lopez, that isn’t sufficient. “We need to add to that.”