Thyssenkrupp's CEO Miguel López has expressed the desire to shake up the steel division's leadership team, according to Handelsblatt. Three out of the five board members, including steel division CEO Bernhard Osburg, have reportedly been presented with termination agreement proposals. López is reportedly upset with the steel business's restructuring strategies, leading to these changes.
The company remained mum on the matter, stating, "We don't usually comment on personnel rumors."
On Thursday, Thyssenkrupp Steel Europe's supervisory board will convene in Duisburg at 3 pm for a meeting. Chair Sigmar Gabriel and vice-chair Detlef Wetzel have scheduled a press conference for 5 pm.
Thyssenkrupp employs around 27,000 individuals in the steel division, with 13,000 working in Duisburg. The company also employs approximately 70,000 people in other sectors.
The division, hit hard by the economic downturn and cheaper imports, is set for a restructuring. Plans for a spin-off include decreasing Duisburg's steel production capacity, which could lead to job losses. The dispute revolves around the financial backing provided by the parent company during the spin-off. The present steel board's restructuring plans are not sufficient for the parent company.
Shareholder representatives in the AG's supervisory board voiced support for López's restructuring approach on Wednesday. They urged the employee side to avoid unsettling employees by suggesting widespread individual job cuts. In recent months, works councils and IG Metall have protested against extensive job cuts at various events.
At the supervisory board meeting, the topic of replacing board members from the metal division could be discussed, potentially following the Handelsblatt report suggesting numerous swaps. The report also hinted at other board members, including metal division members, receiving termination agreement proposals.
NOTE: On a separate note, Thyssenkrupp's CFO, Jens Schulte, has requested to leave the company to join Deutsche Börse AG as CFO. His departure is significant, coming after several executives' exits from the steel division, which has been a source of contention between management and employee factions.
CEO López has proposed Ilse Henne, the CEO of Thyssenkrupp Materials Services, as the next chairperson of the supervisory board. This appointment is pending and has sparked skepticism due to past disagreements between López and other board members.
Steel division restructuring includes reducing production capacity, eliminating 5,000 jobs, and outsourcing 6,000 positions. This plan, outlined in November 2024, is part of the company's strategy to adapt to market conditions.
The acquisition of a 20% stake in Thyssenkrupp’s steel business by Daniel Kretinsky's holding company, EPCG, is uncertain. A contingency agreement allows both parties to withdraw their investments if they fail to agree on joint ownership (50/50) of the steel division. Negotiations are ongoing, and clarity regarding the joint venture's future is expected in 2025.
Moreover, German Chancellor Olaf Scholz visited Thyssenkrupp Steel Europe, emphasizing the importance of steel for Germany and Europe. He highlighted the need for political action to support a competitive steel industry, including measures like reducing energy costs, effective trade protection, and incentives for climate-friendly raw materials.
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