Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Thyssenkrupp will fall apart without steel: deputy chairman

Published 07/23/2020, 07:51 AM
Updated 07/23/2020, 07:55 AM
© Reuters. German steelmaker Thyssenkrupp AG annual shareholders meeting in Bochum

© Reuters. German steelmaker Thyssenkrupp AG annual shareholders meeting in Bochum

MUNICH (Reuters) - Thyssenkrupp (DE:TKAG) should stay in the steel industry, its deputy supervisory board chairman said, in a challenge to the broader management view that no option has been ruled out for a division under pressure from weak demand.

"If you take out steel, the company falls apart," Juergen Kerner, who also serves as chief treasurer of IG Metall, Germany's largest union, told journalists in Munich in comments embargoed for Thursday.

Thyssenkrupp Chief Executive Martina Merz has said a range of options is under consideration for the group's steel unit. It includes a partial or full sale, joint ventures with rivals or the group could keep the division, she has said.

IG Metall, convinced Thyssenkrupp would have a majority in any merged entity, has argued for national steel consolidation, most likely involving smaller rival Salzgitter (DE:SZGG).

"We expect this to happen under the leadership of Thyssenkrupp," Kerner said.

It would, however, require the German government to support the loss-making industry with billions of euros, in part to avoid mass layoffs. "Otherwise there'll be a bloodbath," Kerner said.

© Reuters. German steelmaker Thyssenkrupp AG annual shareholders meeting in Bochum

Thyssenkrupp is also exploring partnership options with Sweden's SSAB (ST:SSABa) as well as India's Tata Steel (NS:TISC), sources previously told Reuters.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.