Thyssenkrupp Steel Europe AG, the steel division of the German Thyssenkrupp AG, intends to sell a 50% stake in the production company Hüttenwerke Krupp Mannesmann GmbH in connection with the reduction of steelmaking facilities in Duisburg (Germany). This is reported in a Thyssenkrupp press release.
At the meeting of the Board of Directors on August 9, the final decision on a broader restructuring was made Thyssenkrupp Steel Europe was not accepted due to the refusal of the members of the labor council to approve additional cuts in production capacity and jobs.
After years of trying to restructure the struggling business, the steel division's board plans to finalize the terms of the steel financing deal by August 20 and discuss the plan at the next meeting on August 29.
In April 2024, Thyssenkrupp announced plans to reduce a fifth of its steelmaking capacity, as well as significant job cuts. The decision, made despite the objections of trade union representatives, was part of a deal to sell 20% of the shares of the steel company to EP Corporate Group, owned by Czech billionaire Daniel Krzetinski, who plans to acquire an additional 30% of the business.
Thyssenkrupp's steel division, formerly the flagship of Germany's industrial development, has been reducing the company's overall profit in recent years, while investors demanded a restructuring of the division, which is burdened with significant pension obligations.
European steel producers have been experiencing difficulties for many years due to declining demand and the need to reduce emissions into the atmosphere, which lead to job cuts. In particular, in June 2024, Tata Steel Ltd. announced plans to cut 2,800 jobs and close furnaces at enterprises in the UK, and the German company Kloeckner & Co SE plans to cut 10% of employees in the European division.
ThyssenKrupp AG is one of the largest industrial concerns in Germany and the world's largest manufacturer of high–alloy steel, metalworking machines, stainless steel sheets and components for the automotive industry. The concern was formed as part of the merger of Thyssen AG and Friedrich Krupp AG Hoesch-Krupp. The headquarters is located in Essen (Germany).
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