At first glance, the two-page press release is only about board members: the Essen-based industrial group Thyssenkrupp announced on Wednesday evening, having found a new CFO and expanding the management board from three to five people. The supervisory board of the MDax company had made these decisions shortly before. But behind this increase lies a break with the group’s previous strategy. There is also a risk of trouble with the unions.
The previous strategy comes from Martina Merz, who was CEO from 2019 to May 2o23. She converted the conglomerate into a “group of companies”: the individual, very different business areas should work as independently as possible, like independent companies, and on top of that there is lean management. The group, which has almost 100,000 employees worldwide, operates steelworks and shipyards, is active as a materials dealer, automotive supplier and mechanical engineer and, with Nucera, has a subsidiary in the future hydrogen market.
After Merz’s early departure, former Siemens manager Miguel López took over the helm in June. And he is now saying goodbye to the concept of a lean board with a lot of freedom for the business areas. Instead, the increased board of directors should lead the areas more strongly; there is a “realignment of the board of directors towards operational management,” according to the statement: Goodbye, Group of Companies.
López himself is now responsible for the business area in which climate-friendly products and solutions are bundled. These include parts for wind turbines or machines for producing and processing green hydrogen. The German-Spanish also bears responsibility for the ailing steel division. The manager is looking for a partner for the division and is currently negotiating with the Czech billionaire Daniel Křetínský. The previous board member Oliver Burkhard remains responsible for the shipyard division, for which Thyssenkrupp also wants to find a buyer or partner.
The group is making high losses
The new board member Volkmar Dinstuhl is responsible for the automotive supply sector, the new board member Ilse Henne is responsible for the materials trade. CFO Klaus Keysberg will leave Thyssenkrupp, as previously announced. Jens Schulte is expected to take over the position in the spring or summer; He is currently CFO of the glass manufacturer Schott AG.
It became clear in August that López wanted to tighten the reins. The 58-year-old ordered the entire company to take action “Performance program”to become more profitable and catch up with competitors. The focus here should not be on savings, but on creating profitable growth. López said on Wednesday that the group has a binding timeline for its “ambitious goals” – and with the expanded board, the program will be able to “drive forward with even more vigor” in the future.
The balance sheet for the past financial year, which the manager presented last week, shows how necessary improvements are. Accordingly, the company’s bottom line was good two billion euros loss. The adjusted operating result also fell by two thirds to a good 700 million euros, and sales fell by a tenth.
The trade unionists reject the increase
However, the employee representatives do not believe in the increase in the number of members and the increase in power of the board. On the supervisory board, the union members voted unanimously against the appointment of Dinstuhl and Henne, but the shareholder representatives outvoted them. Compromise offers from the employee representatives were “completely ignored,” according to a statement from IG Metall: “This turning point will leave its mark and cause lasting damage to the previously balanced and constructive dialogue in the supervisory board.”
The relationship between CEO López and the powerful IG Metall is already tense. The works councils did not feel sufficiently informed about the negotiations regarding the entry of the Czech investor Křetínský into the steel division. The performance program also stirs up fears. And now López is imposing a new leadership structure, apparently against the wishes of the union. The new boss doesn’t seem to place much value on harmony.