Thyssenkrupp outlines steel unit overhaul plan

2019-12-05

Dec. 5, 2019 - Thyssenkrupp now plans to transform the business into its biggest profit engine. It sent a memo to staff saying that it aims to boost earnings before interest and tax at Steel Europe by an average of up to EUR 600 million over the coming years, helped by job cuts and selling more to the autos industry, which would make it the backbone of the conglomerate’s operations following an expected sale or listing of its elevator division. The letter said “Our plan is a clear forward strategy to strengthen Thyssenkrupp Steel’s long-term competitiveness and viability. We cannot simply carry on as before, unless we accept missing the boat to the future.”

The letter said “Steel Europe will cut up to 1,000 jobs in administration and an additional 200 staff would be affected in its operating business. Steel Europe’s Heavy Plate and Electrical Steel businesses would either be restructured, sold or wound down, the letter added, with decisions expected in the coming months.”

Thyssenkrupp also said it planned to increase steel shipments to an average 11.5 million tonnes a year as compared to 11 million tonnes in 2018.