Thyssenkrupp's CEO, López, dismisses criticism concerning the corporation's plan for asset disposals.
Thyssenkrupp Partially Spinning Off Five Divisions Amid Job Security Concerns
Thyssenkrupp AG, the German industrial conglomerate, is working on a plan to partially spin off five of its divisions. The CEO, Miguel López, has defended the move in an interview, stating it is not a "breakup" but a "division." He emphasized that it is not a job cuts program.
In the interview with the Frankfurter Allgemeine Zeitung, López explained that the goal is to create five independent areas focused on growth. Each area will have access to capital, enabling them to take charge of their growth. The CEO aims to strengthen these future independent companies, with the plan set to be presented to the supervisory board on September 16.
Regarding criticism from employee representatives about a lack of transparency, López stated that preliminary talks had already occurred in designated bodies. Both sides—employees and shareholders—were informed, he said. The Krupp Foundation, the largest single shareholder with approximately 21 percent, is another key stakeholder.
Part of the strategic outlook involves separating Thyssenkrupp Marine Systems (TKMS) and listing it separately once favorable market conditions are met. This move is part of a broader strategic plan, aiming to achieve milestones like finalizing business plans for Steel Europe and capitalizing on opportunities from the green transformation.
Although no specific timeline for the individual spin-offs has been committed to, the Marine Systems spin-off, set for 2025, is currently on track. The company is undertaking necessary restructuring while focusing on growth investments. Nevertheless, the impact on employment remains undisclosed.
Sources: ntv.de, AFP
[For further context, the spin-off of TKMS is aimed at better focusing on core competencies and growth opportunities. Entities like Luerssen and Rheinmetall have been mentioned in discussions, though no confirmed transactions have been announced. The company is reviewing its business plans, with ongoing restructuring.]
In the interview, Thyssenkrupp's CEO, Miguel López, assured that the partial spin-off of five divisions is not a job cuts program but an initiative to create five independent growth-focused areas. The CEO aims to strengthen these future independent companies, with the plan set to be presented to the supervisory board on September 16, emphasizing that both employees and shareholders were informed about this decision.
Despite the ongoing restructuring, the impact on employment associated with the spin-offs remains undisclosed at this point. The separate listing of Thyssenkrupp Marine Systems, scheduled for 2025, forms part of a broader strategic plan encompassing finalizing business plans for Steel Europe and capitalizing on opportunities from the green transformation.
