"Do not sell the steel division below its value!" urged Ingo Speich, Head of Sustainability and Corporate Governance at Deka Investment, during the shareholder meeting at the Bochum Ruhrcongress. Referring to the Indian conglomerate Jindal Steel's interest in acquiring Thyssenkrupp Steel Europe, Speich pointed to the EU's announced support measures for the heavy industry. He argued that competitive pressure from cheap imports was expected to ease significantly. At the same time, he noted that Thyssenkrupp's steel business was showing some operational weaknesses. "No other steel manufacturer earns so little." Hendrik Schmidt from DWS Investment asked: "What strategic prospects does Jindal Steel offer for the steel sector?"
CEO Lopez declined to reveal details, emphasizing that the parties involved wanted to keep the talks confidential. Jindal Steel had submitted a non-binding takeover offer for the struggling steel division in September. The Indian company sought the approval of the powerful IG Metall union and the works council and committed to transforming the business into green production. However, negotiations have recently gone quiet. Previous attempts to sell the steel business, form a steel joint venture, or launch an IPO have failed.
THYSSENKRUPP SEEKS RESOLUTION IN HKM DISPUTE
The shareholder meeting was accompanied by protests from several hundred steelworkers from Hüttenwerke Krupp Mannesmann (HKM). "We are your capital" and "We are Thyssenkrupp" read banners outside the hall entrance. The roughly 3,000 HKM steelworkers fear for their jobs after Thyssenkrupp terminated supply contracts. Jindal Steel is also likely to push for a swift resolution to the issue. Lopez expressed willingness to compromise. "Of course, we favor a solution that ensures future viability under Salzgitter's leadership." He said intensive talks were underway with co-owners and hoped for clarity soon. For Thyssenkrupp, separating from HKM was without alternative. Thyssenkrupp holds a 50 percent stake in the Duisburg steelmaker, Salzgitter 30 percent, and French pipe manufacturer Vallourec 20 percent.
The steel business was once the core of the Ruhr conglomerate. It is already clear that up to 11,000 of the division's roughly 26,000 jobs will be cut or outsourced in the coming years. However, this will initially incur high costs, such as severance payments. Overall, the group expects a loss of between 400 and 800 million euros for the 2025/26 fiscal year (ending in September). This figure includes significant restructuring provisions. "The restructuring of the steel division is extensive and painful. But it is unavoidable to secure the survival of the business," Lopez emphasized.
(Reporting by Tom Käckenhoff, edited by Olaf Brenner. For questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
