Rewritten Article:
Tensions surge as Economy Minister Robert Habeck voices uneasiness over Thyssenkrupp's volatile condition. In an open interview with Rheinische Post, Habeck expressed concern, stating, "That ain't good news."
Thyssenkrupp's troubled week began with the sudden departure of key figures from its subsidiary Thyssenkrupp Steel. Sigmar Gabriel, the supervisory board chair, blamed the CEO, Miguel López of Thyssenkrupp, for launching an "unprecedented assault" against the steel management. López had publicly criticized the management of the steel sector, Bernhard Osburg, urging a comprehensive, financially feasible, and resilient blueprint for the subsidiary's realignment.
Amid the tumult in the steel sector, 20% of the steel subsidiary has already been offloaded to EPCG, a company owned by billionaire Daniel Kretinsky. Plans for 30% more transfer to EPCG are underway. Disagreement persists regarding the financial help the division should receive from the parent company. Union leaders have been forecasting potential layoffs due to the impending restructuring for months.
Thyssenkrupp Steel's board members, Markus Grolms, Heike Denecke-Arnold, and Osburg, tendered their resignations, leaving a void. Thyssenkrupp Steel declared that the remaining board members, Dennis Grimm, and Philipp Conze, would continue steering the ship. "The process for filling the vacant positions will be expedited soon," the company announced.
Ali Güzel, the chair of Thyssenkrupp Steel's works council in Duisburg, accused López. "This is Essen's management that's plunged us into this mess," he told WDR. With Osburg, Grolms, and Denecke-Arnold, López, "eliminated," some talented individuals who had a solid plan for the steel sector's independent future, Güzel asserted.
Gabriel accused Siegfried Russwurm, the chairman of Thyssenkrupp's supervisory board, of a "flagrant breach of trust" as well. Gabriel expressed worry about the consequences of the ongoing restructuring on the steel sector's future, stating that the vision of a triumphant, independent steel sector seems to be slipping away in Essen. "Taking responsible action as supervisory board members becomes impossible under these conditions," said Gabriel.
The state has promised Thyssenkrupp Steel €2 billion for the shift to green steel. However, the company must meet its obligations to receive the funds. Habeck emphasized that the company must "contribute its share to ensure that the transformation thrives and sustainable, future-proof steel production is maintained at the German economic location."
Miguel López's criticism of the steel sector management drew backlash from Gabriel, the supervisory board chair, who accused him of waging an "unparalleled upheaval" against the managers in the steel sector. Further, Gabriel expressed anxiety over the repercussions of the ongoing restructuring on the steel sector's future, stating that the aspiration of a successful, independent steel sector appears to be on the decline in Essen.
Enrichment Data:
- Thyssenkrupp's restructuring endeavors have been tempered by CE Capital Partners' withdrawal from acquisition talks for HKM, giving rise to doubts about the facility's future prospects.
- Thyssenkrupp is seeking to part ways from its underperforming steel sector, prioritizing the sale of the HKM facility due to its age and capacity reductions.
- Thyssenkrupp's steel division saw a 10% decrease in sales in the initial quarter of the fiscal year 2024-25, primarily due to drops in spot-market prices across all customer segments.
- Thyssenkrupp's green transformation strategy involves constructing a DRI plant with a capability of producing 2.5 million tons annually and supplying CO2-reduced bluemint Steel to Volkswagen.
- Thyssenkrupp's restructuring initiatives aim to cut around 5,000 jobs at Steel Europe and outsource an additional 6,000 positions by 2030.
Implications for the Future of the Steel Industry in Germany:
- Economic instability and potential job losses may surface due to the ongoing restructuring and possible closure of underperforming facilities like HKM, impacting local communities and the broader steel industry in Germany.
- Thyssenkrupp's commitment to the green transformation could lead to more environmentally sustainable practices, reducing the industry's carbon footprint.
- Global trade tensions, such as the US imposing tariffs on EU steel imports, could further escalate the European steel market, possibly resulting in increased price pressure.
- The steel industry in Germany must adapt to technological advancements and environmental regulations while maintaining a competitive edge in this evolving landscape.
