Thyssenkrupp AG’s steel division is facing significant challenges, and recent comments from departing supervisory board head Sigmar Gabriel suggest that Czech billionaire Daniel Kretinsky may hold the key to its future. In an interview with Der Spiegel, Gabriel expressed his belief that the best outcome for the struggling steel unit would be for Kretinsky to acquire 100% ownership. Gabriel noted that discussions with Kretinsky regarding the future of steel in Europe had been among the most productive in recent times, indicating a potential path forward for a division that has long been a financial burden for Thyssenkrupp.
Gabriel’s departure from Thyssenkrupp this week, alongside that of Chief Executive Officer Bernhard Osburg and several other board members, underscores the internal strife within the company. The management team has been at odds with the parent company over plans to reduce steel-making capacity and realign the business structure. This discord has highlighted the urgent need for decisive action to stabilize the steel division, which has struggled with low demand and high investment costs in a challenging European market.
Kretinsky's EP Corporate Group currently holds a 20% stake in Thyssenkrupp Steel Europe and is engaged in negotiations to acquire an additional 30%. His involvement is seen as a potential turning point for the division, which has suffered from years of underperformance. Gabriel emphasized that Kretinsky brings fresh ideas and a new perspective that could be crucial for revitalizing the steel unit. However, he also acknowledged the uncertainty surrounding the realization of these ideas, reflecting the complexities involved in restructuring such a significant operation.
Kretinsky’s vision for Thyssenkrupp Steel Europe could involve significant changes to its operational model, including investments in new technologies and processes that enhance efficiency and sustainability. As the steel industry faces mounting pressure to reduce carbon emissions and adopt greener practices, Kretinsky's approach may align with broader industry trends. His plans could not only help stabilize the division but also position it as a leader in sustainable steel production in Europe.
