Given the high losses in its steel division, Thyssenkrupp is also talking to foreign competitors about consolidating the industry.
The German trade union IG Metall is generally open to discussions between Thyssenkrupp and potential fusion partners in the steel business. “It is clear that the search for strategic partners will be extended to all areas of the group,” said North Rhine-Westphalian IG Metall boss Knut Giesler on Monday, the Reuters news agency.
The steel companies were put under additional pressure by the corona crisis. At the same time, billions of dollars would be invested in CO2-free production. “No company can handle this alone.” Therefore, it makes sense to have discussions. “We would prefer a German solution with Salzgitter and the Saar companies. If you team up with a foreign partner, the majority must stay in Germany,” Giesler made clear.
Baosteel, SSAB, Tata
Reuters had previously heard from an insider that given the high losses in its steel division, Thyssenkrupp was also talking to foreign competitors about consolidating the industry. This is part of the new course by CEO Martina Merz, who wanted to inform the Supervisory Board of this on Monday. The “Handelsblatt” had reported that the company was in discussion with Baosteel from China, the Swedish SSAB and again Tata Steel. Baosteel and SSAB preferred a majority takeover. The share prices of Thyssenkrupp and Salzgitter rose significantly on Monday.
Management could hardly enforce a steel wedding against the employee representatives. According to its own information, IG Metall has a degree of organization of over 90 percent among the steel stoves from Thyssenkrupp. Works councils and trade unionists make up half of the members of the group and steel supervisory boards.
It is crucial that investments in modern technology can be made with the partner, Giesler emphasized. “We want to have an innovative steel company. This is the only way to secure jobs.” One has to look very closely at whether this is possible with a Chinese company. “It is clear to us that with every solution the jobs and locations in Germany have to be secured. We cannot make any additional job cuts at Thyssenkrupp Steel Europe. Contracts have to be kept.”
A merger with Tata Steel Europe failed last year due to opposition from the EU Commission. According to insiders, however, the thread of conversation has never been completely torn down. Thyssenkrupp still considers consolidation of the European steel industry to be the right thing, management has emphasized ever since. In addition, Thyssenkrupp Steel Europe’s business, which is susceptible to the economic downturn, continues to come under pressure: In the first half of the 2019/20 financial year, the division posted an operating loss of EUR 372 million.
(APA / Reuters)
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