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

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