ThyssenKrupp Steel: Jindal Talks Stall as Job Cuts Loom

Talks between Thyssenkrupp and India’s Jindal Steel & International regarding the sale of the German steelmaker’s European division have stalled, according to a deputy chairman of Thyssenkrupp’s supervisory board, raising concerns about the future of the struggling steel business.

The negotiations, which were intended to secure a future for Thyssenkrupp Steel Europe (TKSE), are not progressing as hoped, with Jindal failing to respond to questions from worker representatives regarding investment plans and worker protections. “We, as the employee side, submitted a catalog of particularly concrete questions to Jindal in order to drive the whole process forward and make it more specific,” said Markus Kerner, a member of the supervisory board, adding that responses had been repeatedly postponed. “So it’s not moving forward, and that’s lousy.”

The lack of clarity is causing anxiety among the 26,000 TKSE employees, as the company is already planning to cut up to 11,000 jobs or outsource them as part of a restructuring plan. IG Metall, the powerful German industrial union, has insisted that the terms of the existing restructuring agreement are “untouchable,” fearing that Jindal may seek deeper cuts. According to reports, Jindal is seeking greater cost savings than previously agreed upon, potentially adding another 2,000 to 3,000 job losses on top of the already planned reductions.

“For us, the agreements of the restructuring tariff contract are sacrosanct,” Knut Giesler, the regional head of IG Metall, told the Rheinische Post. “We expect Jindal to present a concept for the future viability of TKSE on this basis.”

A Jindal spokesperson stated that the company remains in talks with Thyssenkrupp and is committed to a constructive relationship with employee representatives, as well as its plans for low-emission and competitive steel production in Germany. Thyssenkrupp itself confirmed that discussions with Jindal are ongoing.

The potential sale to Jindal had initially offered a glimmer of hope for the struggling steel division, which has been a drag on the wider Thyssenkrupp conglomerate. Previous attempts to sell the steel business, form a joint venture, or launch an initial public offering have all failed. Yet, the emergence of the US investment firm Flacks Group, specializing in crisis companies, as a potential bidder in March adds another layer of complexity to the situation.

IG Metall is now demanding swift clarity on the future of the steel division and its workforce, stating that a prolonged period of uncertainty is unacceptable. The union fears that a deal with Jindal may not deliver on promises of investment and job security, and is preparing for alternative scenarios.