In a significant strategic move, German industrial giant thyssenkrupp is actively pursuing a transformative partnership for its steel division, primarily focusing on expanding Czech billionaire Daniel Kretinsky's EPCG stake from 20% to 50%. This development marks a crucial phase in the company's ongoing restructuring efforts, as revealed by thyssenkrupp's new Chief Financial Officer, Jens Schulte.
The steel division and Kretinsky's team are collaboratively developing a fresh business plan, which will serve as the foundation for mid-term funding assessments scheduled for spring 2025. This comprehensive plan will also guide discussions regarding EPCG's potential increased stake in the business. Schulte, who assumed his role in June, expressed optimism about the negotiations while maintaining a pragmatic approach to alternative scenarios.
thyssenkrupp's strategic planning extends beyond the Kretinsky deal, with the company maintaining open channels with other industrial partners and steel companies. This approach demonstrates the conglomerate's commitment to ensuring business continuity and transformation, regardless of the outcome with EPCG. The company's proactive stance includes potential restructuring of its joint venture HKM, shared with Salzgitter and France's Vallourec.
The restructuring initiative encompasses a comprehensive review of thyssenkrupp Steel Europe's operations, including its diverse portfolio of activities ranging from locomotive operations to port stake ownership and logistics park management. This thorough evaluation aims to optimize efficiency through various measures, including streamlining, outsourcing, or insourcing specific operations.
In addressing investor concerns, Schulte emphasized the company's determination to avoid any uncontrolled insolvency scenarios, highlighting the importance of careful planning and execution in the restructuring process. This stance reflects thyssenkrupp's efforts to rebuild investor confidence following past challenges in meeting financial targets and restructuring milestones.
The company's approach to the steel division's future demonstrates a balanced strategy, combining focused negotiations with Kretinsky while maintaining flexibility through potential alternative partnerships. This dual-track approach aims to secure the best possible outcome for the steel division's long-term sustainability and growth.
The transformation plan also includes careful consideration of employee interests, with Schulte noting that any ownership agreement would involve negotiations between steel management, Kretinsky, and employee representatives. This inclusive approach underscores thyssenkrupp's commitment to managing stakeholder interests throughout the restructuring process.
