Thyssenkrupp anounces plan to split into two companies
by David Fleschen
|Thyssenkrupp’s supervisory board has unanimously approved a plan to split the company into two independent entities, one that would manage its steel and materials business and another that would focus on capital goods.|
“We are planning to create two independent companies with a common DNA and strong roots from over 200 years of common history. But we have more in common than just history - a common understanding of performance and values,” said thyssenkrupp chief executive Guido Kerkhoff.
“We are now proposing a solution that not only creates value for our shareholders, but also significantly improves the development prospects of our businesses,” he added.
Under the plan, thyssenkrupp will spin off a new entity, thyssenkrupp Industrials AG, which will run its elevator, automotive components and plant construction units.
The remaining businesses would stay with a reorganized thyssenkrupp AG, which will become thyssenkrupp Materials. thyssenkrupp Materials will consist of thyssenkrupp’s 50% stake in its steel joint venture with Tata Steel, its slewing bearings and forging businesses as well as the marine business.
“The result is a materials group that combines steel and stainless steel production, materials trading and steel-related processing, that has a leading market position in Europe and can also take advantage of consolidation opportunities from a position of strength,” the company said.
Source: Steel News, photo: thyssenkrupp AG