Thyssenkrupp CEO, López, dismisses criticisms over the conglomerate's dispersal strategy.
Thyssenkrupp CEO Defends Plans for Partial Spin-off of Business Units; No Job Cuts Anticipated
In a recent interview with the Frankfurter Allgemeine Zeitung, Thyssenkrupp CEO Miguel López defended the company's controversial plans to partially spin off five of its business divisions, emphasizing that this move is not a breaking-up of the conglomerate but rather a strategic separation. López reiterated that the spin-off does not entail any job cuts.
López indicated that the spin-off aims to create five independent areas, focusing on high-growth sectors. The CEO believes that this separation will strengthen the future companies, giving them the necessary autonomy and capital access to drive their own growth. The plans will be presented to the supervisory board on September 16.
Regarding the criticism of a lack of transparency from employee representatives, López stated that preliminary discussions have already taken place in the appropriate bodies, ensuring that both employee and shareholder sides are well-informed. The Krupp Foundation, the company's largest single shareholder, holds approximately 21 percent of the company's stock.
The restructuring of Thyssenkrupp AG impacts two of its key business units: Marine Systems and Steel Europe. In the marine sector, the planned partial spin-off will allow Thyssenkrupp Marine Systems (TKMS) to focus on military shipbuilding and associated technologies, potentially capturing new contracts with the increase in European defense spending. TKMS aims to list on the stock market in the coming years, although Thyssenkrupp may retain a significant stake.
The Steel Europe business is likely to form a 50/50 joint venture with EPG, moving towards full independence. This segment is expected to focus on sustainable steel production and growth in decarbonized markets. The timeline for TKMS's spin-off is set for calendar year 2025, while the process for Steel Europe is ongoing, with key decisions expected in financial year 2024/25.
Thyssenkrupp's restructuring aims to unlock value, enhance operational independence, and position both TKMS and Steel Europe for sustainable growth in their respective sectors.
Source: ntv.de, AFP
The CEO's defense of Thyssenkrupp's spin-off plan reveals a strategic intention to create five independent areas, each focusing on high-growth sectors, with the aim of strengthening the future companies and granting them autonomy and improved access to capital for growth.
This restructuring is not expected to result in job cuts, as emphasized by the CEO, and will impact key business units such as Marine Systems and Steel Europe, with the marine sector potentially capturing new contracts due to increased European defense spending.
