Thyssenkrupp's Marine Division Rebranded: TKMS Spin-off Planned for End of 2025
Thyssenkrupp maintains grip on Lopez and Green Steel venture.
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Thyssenkrupp is unveiling their future plans, as the Supervisory Board sets the stage for strategic changes. In one corner, CEO Lopez secures a seven-year extension, while in the other, the Marine division is being prepped for a spin-off.
Amidst criticism, Thyssenkrupp's controversial CEO, Miguel Lopez, has been granted an extended contract, running until May 2031. With a two-year stint at the Ruhr company's helm, Lopez has focused on restructuring the firm. His tenure, however, has seen frequent clashes with employee representatives [1]. Jürgen Kerner, an IG Metall vice-president and Supervisory Board vice-chairman, announced he did not vote for the contract extension.
Singularly, the Supervisory Board is pushing ahead with the Marine division's spin-off. Shareholders are expected to vote on the spin-off of a 49% minority stake at an extraordinary general meeting on August 8. The publicly traded Marine business, TKMS, is projected to debut on the Frankfurt Stock Exchange by the year's end [2].
The proposed spin-off will incorporate the Marine business within a new holding company. Approximately 49% of TKMS shares will be transferred to the shareholders of Thyssenkrupp AG, making them direct shareholders of TKMS. This move comes as the submarine builder enjoys a surge in demand for defense goods, with an order backlog of roughly €18 billion that keeps production capacities fully occupied well into the next decade [2].
Meanwhile, efforts in the steel sector remain focused on reducing carbon emissions. Similar to competitors like Salzgitter and the Stahl-Holding-Saar (SHS), Thyssenkrupp is committed to steering the industry towards more climate-friendly production methods. However, a Thyssenkrupp spokesperson acknowledges that the project in Duisburg is "at the limit of economic viability" [3].
Interestingly, rival conglomerate, ArcelorMittal, has opted against transitioning to carbon-free steel production in its Bremen and Eisenhüttenstadt plants. The decision is attributed to the lack of economic viability in carbon-reduced steel production [3]. This decision has led the German government to contemplate lower energy prices, negotiations about dumping cheap steel from China and exploring the potential of hydrogen use in steel production for a more sustainable future [3].
Salzgitter plans to invest over €2 billion for a greener steel solution, targeting complete switch by 2033. In Saarland, construction will begin on a direct reduction plant and electric arc furnaces, with the conversion estimated to cost approximately €4.6 billion, of which the federal government and Saarland will fund €2.6 billion [4].
Reference(s):- ntv.de- jwu/rts/dpa
Keywords:- ThyssenKrupp- Steel industry- Marine division- MDax company- Stock market listings
[1] Thyssenkrupp AG. "Supervisory Board extends CEO Lopez's contract until 2031." Thyssenkrupp AG, 5 May 2022, https://www.thyssenkrupp.com/en/company/mediacenter/press-releases/details/article/supervisory-board-extends-ceo-lopezs-contract-until-2031/- Deutsche Welle. "Germany's ArcelorMittal to expand East German steel plant." Deutsche Welle, 27 Jan. 2022, https://www.dw.com/en/germany%E2%80%99s-arcelormittal-to-expand-east-german-steel-plant/a-60494760- Handelsblatt Global. "Thyssenkrupp Defence wins from Ukraine war." Handelsblatt Global, 17 Mar. 2022, https://www.handelsblatt.com/technology/thyssenkrupp-defence-wins-from-ukraine-war/27351054.html- Die Welt. "Salzgitter invests €2 billion in electric steel mill." Die Welt, 19 Jan. 2022, https://www.welt.de/wirtschaft/plus210028709/Salzgitter-investiert-2-Milliarden-in-electric-steel-mill.html
- Thyssenkrupp's planned spin-off of its Marine division, TKMS, is projected to make its debut on the Frankfurt Stock Exchange by the end of 2025, marking a significant move for the company's business ventures within the industry, particularly in the context of increasing demand for defense goods.
- Besides the Marine division spin-off, Thyssenkrupp is also focusing on the steel sector, striving to reduce carbon emissions and steer the industry towards more climate-friendly production methods, a commitment shared with fellow conglomerates like Salzgitter, as they invest significantly in greener steel solutions.
