Economic Minister of North Rhine-Westphalia expresses worries over Thyssenkrupp's situation.
Thyssenkrupp Braces for Major Restructuring, Causing Alarm Among Stakeholders
Düsseldorf's state government expresses concern over Thyssenkrupp's planned drastic restructuring measures, as rumors circulate about potential breakups and job cuts. Green Economic Minister Mona Neubaur calls for clarity from the company, stressing the need for reliability and a clear direction to avoid harmful speculation.
In an interview with the "Rheinische Post," Neubaur stated, "The people of North Rhine-Westphalia, and particularly the employees at Thyssenkrupp, need reassurance and a clear path at this time. The current public speculation regarding the company's breakup is detrimental to constructive solutions." She emphasized that the strategic realignment of Thyssenkrupp could present an opportunity if implemented with restraint, social responsibility, and a firm commitment to the industrial locations in NRW.
Neubaur reminded Thyssenkrupp of the state's funding for climate-friendly steel production and industrial strength, stating that the preservation and transformation of industrial value creation is a primary concern for the state government.
Thyssenkrupp plans to present its plans for the entire company to the supervisory board by the end of the current fiscal year 2024/25 (until end of September). The company is considering making all business areas independent and open to third-party participation. The works council and IG Metall have expressed a willingness to engage in discussions, but have cautioned against breaking up the company, which employs nearly 100,000 people.
IG Metall recently reached a preliminary agreement with Thyssenkrupp Steel on the necessary restructuring, aiming to secure a collective bargaining agreement by summer 2025. The union is working on defining the terms of workforce restructuring, including job security and transition measures, to mitigate the social impact of job reductions.
In its efforts to regain competitiveness, Thyssenkrupp aims to position itself as a holding company, focusing on profitability rather than size. The company will be divesting several divisions for capital market readiness, including Material Services and Automotive Technology in the coming years, and the long-term independent Decarbon Technologies segment.
According to reports, Thyssenkrupp is undergoing a major cultural shift under CEO Miguel Lopez, with a focus on green technologies, decarbonization, and developing high-growth divisions. The company's financial improvements include achieving net debt of zero after repaying its last bond in February 2025, providing a stable foundation for ongoing transformation.
As Thyssenkrupp navigates this restructuring, the company has acknowledged that significant job cuts are likely, particularly within the steel division. While these potential job losses have raised concerns among stakeholders, negotiations are ongoing to secure fair terms and minimize the social impact. Stay tuned for updates as Thyssenkrupp moves forward with its ambitious plans.
- In light of Thyssenkrupp's planned restructuring, the community policy shouldaddress the potential job cuts and the company's transition to a holding company, focusing on vocational training programs that could assist workers in finding new opportunities within the industry.
- Moving forward, Thyssenkrupp's restructuring plan must be closely scrutinized by the state government and financial institutions to ensure that the company's shift towards green technologies and decarbonization is not only profitable but also sustainable for the business, employees, and the local community.
