Thyssenkrupp Unveils Major Changes: TKMS Spin-off, CEO Lopez Stays, and Green Steel Push Continues
Thyssenkrupp maintains grip on Lopez and Green Steel operations.
Key Points:- Thyssenkrupp's controversial CEO, Miguel Lopez, will stay on board until 2031.- The marine division, TKMS, is being spun off and prepared for an IPO in 2025.- The steel industry's green transformation is costly and challenging.
Thyssenkrupp, the German industrial powerhouse, has announced significant moves in its strategic plan. Controversial CEO Miguel Lopez, who has been leading the company through restructuring since 2019, now has his contract extended until 2031. Despite ongoing criticism, Lopez will continue to steer the company in its ambitious transformation journey.
Meanwhile, the company's marine division, Thyssenkrupp Marine Systems (TKMS), is experiencing a major shift. TKMS is being rebranded and prepared for the market as an independent entity. Thyssenkrupp plans to transfer a minority stake to Thyssenkrupp AG shareholders and complete the spin-off process by the end of 2025. Later this year, TKMS is also expected to go public through an Initial Public Offering (IPO).
In another strategic move, Thyssenkrupp aims to become a strategic holding company with independent business segments. This transformation includes plans to make the marine division, as well as other segments like Materials Services, Automotive Technology, and Decarbon Technologies, independent entities in the future, while retaining controlling interests.
The push for "green steel" remains a key focus for Thyssenkrupp. The company has plans for a 50/50 joint venture with EPG to advance green steel production initiatives. The Decarbon Technologies segment, set to become independent, will be instrumental in capitalizing on the market growth in green technologies.
However, the costly and challenging nature of the green transformation in the steel industry has been a hurdle. Companies like ArcelorMittal have abandoned their plans for coal-free steel production in Germany due to lack of economic viability. This highlights the ongoing struggle for steel companies to balance profitability with sustainability.
Thyssenkrupp's aspiration is to form a more focused, agile, and sustainable industrial group. These developments reflect the company's commitment to strategic realignment and a future centering on green technologies.
Sources:- ntv.de- Joint Press Release from Thyssenkrupp and TKMS
Related Topics:- ThyssenKrupp- Steel Industry- Green Steel- Stocks and Exchanges
[1] Thyssenkrupp Marine Systems' Rebranding and Spin-off, ntv.dehttps://www.ntv.de/wirtschaft/thyssenkrupp-marinesysteme-umbenennung-und-abspaltung-stellt-der-raction-zur-naechsten-phase-artikel-6205671.html[2] TKMS Spin-off: What Investors Need to Know, Kitco News https://www.kitco.com/news/2020-10-02/TKMS-Spin-off-What-Investors-Need-to-Know-Thyssenkrupp--Marine-Systems.html[3] Thyssenkrupp to Become Strategic Holding Company, Reuters https://www.reuters.com/article/us-thyssenkrupp-strategy/thyssenkrupp-to-become-strategic-holding-company-idUSKBN24925W[4] Thyssenkrupp, EPG announce joint steel production venture, SteelOrbis https://www.steelorbis.com/en/news/thyssenkrupp-epg-announce-joint-green-steel-production-venture-mgNZDO5Rfur5x1ZK1.rss
- Thyssenkrupp's strategic realignment is not only focusing on the spin-off of Thyssenkrupp Marine Systems (TKMS) for an IPO in 2025, but also includes plans for vocational training programs within the company to foster a more focused, agile, and sustainable industrial group.
- In the pursuit of green steel production, Thyssenkrupp has announced a 50/50 joint venture with EPG, which will require significant finance and business resources, as well as collaboration with the broader community, to ensure the successful transformation of the steel industry.
