It all started with her, but how things will continue with her threatens to become an eternal question: steel production stands at the beginning of the history of Thyssen and Krupp, which merged 23 years ago. The group is looking for its future in steel trading, in components for cars or wind turbines. But now, for the third time, it seems as if the people of Essen can’t get away from their roots.
Thyssenkrupp actually wanted to outsource the steelworks with 26,000 employees on the Rhine and Ruhr to an independent company. Companies like Siemens and Continental have shown how something like this works. And it is still said that a separation would offer “very good future prospects”. But whether it would be feasible can no longer be said. Thyssenkrupp announced this on Wednesday evening – and it is not well received on the stock exchange: Germany’s largest steel manufacturer temporarily lost eleven percent in value on Thursday.
In some areas, the group is now preparing for short-time work
Thyssenkrupp points out that the war in Ukraine is disrupting supply chains. For example, the car industry can import significantly fewer electrical wiring harnesses from Ukraine. This restricts production, and as a result the industry orders less steel or car parts. At the same time, raw materials such as coal and nickel have become significantly more expensive as a result of the war and international sanctions. Companies like Thyssenkrupp are now buying energy sources and supplies at higher prices.
“The consequences of the war will affect us and steel in particular,” says CEO Martina Merz. In some areas, the group has to prepare for short-time work. Thyssenkrupp is also trying to pass on higher costs to customers where possible.
Crisis manager: Martina Merz moved to the top of Thyssenkrupp in autumn 2019. A few months later, the Corona crisis broke out, which hit the group hard.
(Photo: dpa)
From 2017, the Essen-based company tried to merge its steel division with its British-Dutch competitor Tata Steel Europe. However, the merger ultimately failed due to EU competition requirements. In 2020, the British company Liberty Steel wanted to take over Thyssenkrupp’s steel business. However, no agreement could be reached on a purchase price. About a year ago, the intention to release the steel works into independence became known.
The steel industry in Germany has faced international competition for years; During the Corona crisis, many companies made losses. On top of that, the industry wants to invest several billion euros in new plants that will no longer produce steel with climate-damaging coal, but with natural gas and, in the long term, with hydrogen. Here, the companies also rely on state climate protection grants. But as long as so many questions are unanswered, says Merz, you can’t make any statements about the future.