Thyssenkrupp CEO characterizes company restructuring as not equivalent to a corporate split. - Thyssenkrupp CEO: Rebuilding process not about destroying, but reconstructing.
Thyssenkrupp Restructuring: CEO Clarifies It's Not a "Break-up"
Thyssenkrupp's plan to restructure its industrial group into a holding company, consisting of five autonomous businesses, is not a dismantling, according to CEO Miguel López. The intent, he explained to the Westdeutsche Allgemeine Zeitung (WAZ), is to progressively make all business divisions independent.
For all activities, apart from steel, Thyssenkrupp aims to retain a majority stake. However, for the steel sector, a 50:50 joint venture with the Czech company EPCG is under consideration.
The steel, marine, and the remaining three business areas—automotive parts, materials trading, and green technologies—will be made independent and prepared for the capital market in the coming years, the company announced on Monday. Other companies may also be involved in the venture. Over the medium term, Thyssenkrupp AG is expected to transform into a strategic holding company with self-governing units. The board aims to present the "future model" to the supervisory board this year.
CEO López expressed his desire to strengthen Thyssenkrupp. "We aim to create five competitive companies. That's how growth is fostered," he told the WAZ. By making different business divisions autonomous, Thyssenkrupp gains strength, similar to other companies such as Siemens, General Electric (GE), or Continental, he added. The company is open to partnerships, provided they enhance performance and benefit employees and shareholders.
Thyssenkrupp's restructuring strategy shares similarities with Siemens, GE, and Continental's transition to a holding company model and division independence. However, Thyssenkrupp stands out for its strong emphasis on negotiating workforce protections and focusing on specific industrial future markets, like decarbonization. Unlike GE, which focused on debt reduction and investor concerns, Thyssenkrupp is seeking to unlock value and enable growth in high-potential sectors. Compared to Continental, Thyssenkrupp's approach is broader and more gradual, but with a similar goal of increased agility.
The restructuring strategy of Thyssenkrupp, similar to that of Siemens, General Electric (GE), and Continental, involves transforming into a holding company with self-governing units, such as five independent businesses. The company aims to secure aid for the restructuring of the steel industry, whether through retaining a majority stake, or considering a 50:50 joint venture with EPCG, while seeking performance-enhancing partnerships and workforce protections. The ultimate goal is to foster growth and unlock value in high-potential sectors like decarbonization, setting Thyssenkrupp apart from rivals like GE.
