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Epoch Times
27-05-2025
- Business
- Epoch Times
Thyssenkrupp, Owner of Germany's Iconic Steelmaker, to Become Holding Company After 200 Years
The owner of Germany's largest steelmaker, Thyssenkrupp, said on Monday it aims to turn into a holding company after two centuries as a manufacturer. The company, once a symbol of German manufacturing might, has struggled in recent years with high costs, tariffs, cheaper Asian competitors, and difficulties around the steel industry's green transition. On May 26, Thyssenkrupp said it is planning to Thyssenkrupp is the result of a 1999 merger between Germany's oldest industrial giants Krupp, which was founded in 1811, and Thyssen, which was founded in 1891. The company now says the aim is to become a holding company, a setup that does not produce goods or services itself but instead owns shares in other companies, with shareholdings in independent business areas. 'Such a step will enable us to leverage the full value creation potential of the businesses and use their independence in a targeted way for investments, market opportunities, and further growth,' Thyssenkrupp CEO Miguel Lopez said. Related Stories 5/22/2025 12/21/2024 Earlier in the month, Thyssenkrupp said that it planned to cut 11,000 of its 27,000 jobs—or around 40 percent of its steel workforce—over the coming years. On May 15, Thyssenkrupp's steel division—of which Czech billionaire Daniel Kretinsky owns 20 percent and wants to By 2045 at the latest, steel production in Germany must produce 'almost zero' emissions due to German laws aimed at making the entire economy greenhouse-gas neutral. Authorities want However, earlier in the month, Thyssenkrupp said that it can't guarantee that its 3-billion-euro ($3.3 billion) 'green steel site,' the company's single biggest investment, will be economical. Lopez said that his expectation was that sufficient amounts of affordable green hydrogen would be available at the time of completion. However, now he says those assumptions were too ambitious. 'Under the current conditions, there is no guarantee that we will be able to operate the plant economically in the foreseeable future,' Lopez said. 'If this does not change, there is a risk that Duisburg will be home to one of the world's most modern steel production plants, without an adequate supply of the desired green hydrogen.' The co-leader of the populist Alternative for Germany (AfD) party, which came a close second in recent federal elections, said the breakup of Thyssenkrupp 'symbolizes the decline of our economy.' 'The once proud steel company is representative of many German companies that are running out of steam due to high costs,' Alice Weidel The United States maintains a 25 percent tariff on EU steel and aluminum imports as well as reciprocal tariffs of 10 percent on almost all other goods. The implementation of a further Germany, Europe's largest economy, is known for its skilled labor force and high-end exports. According to a The country has been struggling with the loss of affordable Russian gas, historic Volkswagen plant closures, and fierce competition from cheaper Chinese electric vehicles. The German government's deficit is set to remain elevated, and the government debt ratio is expected to increase to 64.7 percent of gross domestic product in 2026. Reuters and Guy Birchall contributed to this report.
Time of India
26-05-2025
- Business
- Time of India
Struggling German steel giant Thyssenkrupp plans major overhaul
FRANKFURT: Thyssenkrupp said Monday it planned a major overhaul that will split the vast conglomerate into several standalone businesses, fuelling fears about further job losses and a looming break-up of the historic German industrial titan. Tired of too many ads? go ad free now Once a symbol of German manufacturing might, Thyssenkrupp has fallen into crisis in recent years as high costs at home, falling prices for its products and fierce competition from Asian rivals hammered its traditional steel business in particular. The conglomerate, which traces its history back to the early 19th century, had already announced massive job cuts at the steel division and was in the process of seeking to spin off some parts of the business. The plan announced Monday goes further however, and involves gradually making all segments of the group -- ranging from auto parts to green technologies -- into standalone businesses and opening them up for outside investment. The current Thyssenkrupp group would be transformed into a holding company with stakes in the individual businesses. Chief executive Miguel Lopez said the plan, to be presented to the supervisory board before the end of September, will help the group continue on its "chosen course". "The future independence of our current segments... will increase their entrepreneurial flexibility, strengthen their investment plans and earnings responsibility, and improve transparency for investors," he said in a statement. The move principally affects the group's automotive technology and green technology units as well as one that deals with supply chain management. The aim is for them to become independent businesses in the coming years, with Thyssenkrupp to retain a controlling stake. Tired of too many ads? go ad free now Efforts were already ongoing to spin off its lucrative submarine-making unit, and Czech billionaire Daniel Kretinsky has taken a 20-percent stake in the steel business, with the goal of increasing this to 50 percent. 'Dramatic situation' Investors cheered the news, with Thyssenkrupp's shares up more than eight percent in afternoon trading on the Frankfurt Stock Exchange. But there was anger at what some viewed as the looming demise of a well-known German manufacturing giant, which has almost 100,000 employees worldwide, as well as fears about more job cuts. "Germany's industrial icon faces being dismantled, thousands of jobs are at risk," said the tabloid newspaper Bild. It reported that the number of staff at the group's Essen headquarters would be slashed from 500 to 100. Thyssenkrupp declined to comment on the report. Politicians voiced anger at the potential impact in North Rhine-Westphalia state, where Germany's biggest steelmaker has major operations and is a big employer. Dennis Radtke, a European Parliament lawmaker from Chancellor Friedrich Merz's CDU party, warned of a "dramatic situation for the entire value chain in the steel industry" if the restructuring plan goes ahead. R adtke, originally from the region, told Stern magazine that swift action was needed to "avoid carnage that would make us even more dependent on China... the chancellor must make the issue a top priority". China has become a major competitor to traditional European steelmakers in recent years. A spokesman for the North Rhine-Westphalia state said it was "closely monitoring" the latest developments at Thyssenkrupp. The state government's "actions are focused on securing jobs at ThyssenKrupp... and throughout the steel industry and related value chains", he told AFP. Thyssenkrupp has reported massive annual losses for the past two years running. In November last year it announced plans to cut about 11,000 jobs at the steel division -- over a third of the workforce.
France 24
26-05-2025
- Business
- France 24
Struggling German steel giant Thyssenkrupp plans major overhaul
Once a symbol of German manufacturing might, Thyssenkrupp has fallen into crisis in recent years as high costs at home, falling prices for its products and fierce competition from Asian rivals hammered its traditional steel business in particular. The conglomerate, which traces its history back to the early 19th century, had already announced massive job cuts at the steel division and was in the process of seeking to spin off some parts of the business. The plan announced Monday goes further however, and involves gradually making all segments of the group -- ranging from auto parts to green technologies -- into standalone businesses and opening them up for outside investment. The current Thyssenkrupp group would be transformed into a holding company with stakes in the individual businesses. Chief executive Miguel Lopez said the plan, to be presented to the supervisory board before the end of September, will help the group continue on its "chosen course". "The future independence of our current segments... will increase their entrepreneurial flexibility, strengthen their investment plans and earnings responsibility, and improve transparency for investors," he said in a statement. The move principally affects the group's automotive technology and green technology units as well as one that deals with supply chain management. The aim is for them to become independent businesses in the coming years, with Thyssenkrupp to retain a controlling stake. Efforts were already ongoing to spin off its lucrative submarine-making unit, and Czech billionaire Daniel Kretinsky has taken a 20-percent stake in the steel business, with the goal of increasing this to 50 percent. 'Dramatic situation' Investors cheered the news, with Thyssenkrupp's shares up more than eight percent in afternoon trading on the Frankfurt Stock Exchange. But there was anger at what some viewed as the looming demise of a well-known German manufacturing giant, which has almost 100,000 employees worldwide, as well as fears about more job cuts. "Germany's industrial icon faces being dismantled, thousands of jobs are at risk," said the tabloid newspaper Bild. It reported that the number of staff at the group's Essen headquarters would be slashed from 500 to 100. Thyssenkrupp declined to comment on the report. Politicians voiced anger at the potential impact in North Rhine-Westphalia state, where Germany's biggest steelmaker has major operations and is a big employer. Dennis Radtke, a European Parliament lawmaker from Chancellor Friedrich Merz's CDU party, warned of a "dramatic situation for the entire value chain in the steel industry" if the restructuring plan goes ahead. Radtke, originally from the region, told Stern magazine that swift action was needed to "avoid carnage that would make us even more dependent on China... the chancellor must make the issue a top priority". China has become a major competitor to traditional European steelmakers in recent years. A spokesman for the North Rhine-Westphalia state said it was "closely monitoring" the latest developments at Thyssenkrupp. The state government's "actions are focused on securing jobs at ThyssenKrupp... and throughout the steel industry and related value chains", he told AFP. Thyssenkrupp has reported massive annual losses for the past two years running. In November last year it announced plans to cut about 11,000 jobs at the steel division -- over a third of the workforce.
Int'l Business Times
26-05-2025
- Business
- Int'l Business Times
Struggling German Steel Giant Thyssenkrupp Plans Major Overhaul
Thyssenkrupp said Monday it planned a major overhaul that will split the vast conglomerate into several standalone businesses, fuelling fears about further job losses and a looming break-up of the historic German industrial titan. Once a symbol of German manufacturing might, Thyssenkrupp has fallen into crisis in recent years as high costs at home, falling prices for its products and fierce competition from Asian rivals hammered its traditional steel business in particular. The conglomerate, which traces its history back to the early 19th century, had already announced massive job cuts at the steel division and was in the process of seeking to spin off some parts of the business. The plan announced Monday goes further however, and involves gradually making all segments of the group -- ranging from auto parts to green technologies -- into standalone businesses and opening them up for outside investment. The current Thyssenkrupp group would be transformed into a holding company with stakes in the individual businesses. Chief executive Miguel Lopez said the plan, to be presented to the supervisory board before the end of September, will help the group continue on its "chosen course". "The future independence of our current segments... will increase their entrepreneurial flexibility, strengthen their investment plans and earnings responsibility, and improve transparency for investors," he said in a statement. The move principally affects the group's automotive technology and green technology units as well as one that deals with supply chain management. The aim is for them to become independent businesses in the coming years, with Thyssenkrupp to retain a controlling stake. Efforts were already ongoing to spin off its lucrative submarine-making unit, and Czech billionaire Daniel Kretinsky has taken a 20-percent stake in the steel business, with the goal of increasing this to 50 percent. Investors cheered the news, with Thyssenkrupp's shares up more than eight percent in afternoon trading on the Frankfurt Stock Exchange. But there was anger at what some viewed as the looming demise of a well-known German manufacturing giant, which has almost 100,000 employees worldwide, as well as fears about more job cuts. "Germany's industrial icon faces being dismantled, thousands of jobs are at risk," said the tabloid newspaper Bild. It reported that the number of staff at the group's Essen headquarters would be slashed from 500 to 100. Thyssenkrupp declined to comment on the report. Politicians voiced anger at the potential impact in North Rhine-Westphalia state, where Germany's biggest steelmaker has major operations and is a big employer. Dennis Radtke, a European Parliament lawmaker from Chancellor Friedrich Merz's CDU party, warned of a "dramatic situation for the entire value chain in the steel industry" if the restructuring plan goes ahead. Radtke, originally from the region, told Stern magazine that swift action was needed to "avoid carnage that would make us even more dependent on China... the chancellor must make the issue a top priority". China has become a major competitor to traditional European steelmakers in recent years. A spokesman for the North Rhine-Westphalia state said it was "closely monitoring" the latest developments at Thyssenkrupp. The state government's "actions are focused on securing jobs at ThyssenKrupp... and throughout the steel industry and related value chains", he told AFP. Thyssenkrupp has reported massive annual losses for the past two years running. In November last year it announced plans to cut about 11,000 jobs at the steel division -- over a third of the workforce. Thyssenkrupp plans to separate its divisions into standalone companies AFP Thyssenkrupp CEO Miguel Lopez hopes the restructuring plan can bring new investment into the group AFP
Business Recorder
15-05-2025
- Automotive
- Business Recorder
Thyssenkrupp's second-quarter profit plunges as tariff uncertainty hits demand
FRANKFURT/DUESSELDORF: Thyssenkrupp's operating profit plunged in the second quarter, hurt by what the German conglomerate said was high economic uncertainty among most of its customers and regions, most notably in automotive and steel. Shares in the submarines-to-car parts group were indicated 3.5% lower in pre-market trade following a 90% drop in quarterly adjusted EBIT to 19 million euros ($21 million), far below the 146 million average forecast in a poll provided by the company. Thyssenkrupp, through its sprawling global structure that also covers materials trading and hydrogen, is exposed to global trade frictions and on Thursday warned that tariffs would negatively impact global automotive production in 2025. 'The introduction of universal import tariffs and individual customs tariffs for major trading partners like the EU and China are having a negative impact on global trade and destabilising international supply chains,' the group said in its first-half report. Thyssenkrupp's steel division, in which Czech billionaire Daniel Kretinsky owns 20%, swung to a 23-million-euro loss, compared with a 68-million profit last year, also hit by maintenance-related outages. The German conglomerate said it still expects adjusted operating profit (EBIT) of 600 million to 1 billion euros and free cash flow before M&A of between 0 and 300 million euros. Second-quarter adjusted EBIT at the group's submarine division, which is currently being prepared for a spin-off later this year, rose 24% to 31 million euros. 'In the second half of the year, we are expecting a more stable market environment and positive effects from the measures we have initiated,' Thyssenkrupp CEO Miguel Lopez said.
