(New: Further statements from the press conference)

ESSEN (dpa) - The long-established Thyssenkrupp Group sees itself as a pioneer on the road to climate neutrality in industry. It is a "pioneer of the green transformation", emphasized Thyssenkrupp CEO Miguel López on Wednesday in Essen at the presentation of the annual results for the 2022/23 financial year. "We have world-leading technologies to reduce a large part of today's CO2 emissions."

López referred to the new segment called Decarbon Technologies, in which the industrial and steel group has bundled its green activities since the beginning of October. This includes the plant manufacturers Nucera (electrolysers for hydrogen, for example), Uhde (chemical plants) and Polysius (cement plants) as well as the slewing bearing manufacturer Rothe Erde, whose products are used in wind turbines. The 58-year-old manager emphasized that the entire Group, including the automotive supply and materials divisions, would be geared towards green transformation and future-oriented topics. It was the Spaniard's first balance sheet presentation after he took over as CEO from Martina Merz at the beginning of June.

"We are the biggest climate activists in the country"

The company is also a "driver" of transformation when it comes to climate-neutral steel. "We are the biggest climate activists in the country," said López. He was referring to the planned conversion of steel production in blast furnaces, which produces a lot of carbon dioxide. In future, steel is to be produced in so-called direct reduction plants with the help of climate-neutral hydrogen. The first plant, which will cost around three billion euros, is due to start up in Duisburg in 2027. Thyssenkrupp Steel is Germany's largest steel manufacturer. According to its own figures, the steel division is currently responsible for around 2.5 percent of total carbon dioxide emissions in Germany.

According to Thyssenkrupp, it is holding "constructive and open-ended talks" with the energy company EPH regarding the planned spin-off of the steel division. Discussions are being held about a potential joint venture with Steel Europe, which EPH could support with its energy expertise. The specific structure of a possible joint venture is the subject of ongoing negotiations.

Talks with EPH may still take some time

López left it open as to when an agreement can be expected. In the ongoing talks, the "classification" of the ongoing, very challenging environment with a weak economy, rising raw material costs and high energy costs "will still take time". "We are working on a solution with EPH. If there is no solution here, we of course also have a plan B, but I can't share it here."

EPH is owned by the Czech billionaire Daniel Kretinsky. The group owns the lignite companies Mibrag and Leag in eastern Germany, which want to generate more climate-neutral electricity from renewable energies in the future.

The success of CO2-neutral steel production is essentially dependent on the secure supply of large quantities of "green" energy at competitive prices, according to a company statement. "For this reason, thyssenkrupp is in discussions with potential strategic partners from the energy industry."

Chief Human Resources Officer: co-determination is closely involved

"If we get it right, we can significantly improve the competitiveness of Steel Europe and position the business for future green markets," said Chief Human Resources Officer Oliver Burkhard. Co-determination plays an important role in this transformation. "It is closely involved in the talks on independence in a proven manner."

After the talks with the EPH Group became known at the beginning of October, the IG Metall trade union warned against a "rush job at the expense of the employees". A good 26,800 people were employed in the steel division at the end of September. The largest location is Duisburg with around 14,000 Steel employees alone. Group-wide, the number of full-time positions rose by around four percent to almost 100,000 in 2022/23.

Two billion euro loss - but dividend still planned

In the financial year ending in September, write-downs on the steel business running into the billions pushed the Group deep into the red. The bottom line was a net loss of around two billion euros. Thyssenkrupp put the value adjustments on the fixed assets of the steel division at 2.1 billion euros. The write-downs had become necessary due to the economic downturn and higher capital costs, it said.

Thyssenkrupp had originally forecast a net profit for the year of "at least" break-even - after a profit of 1.2 billion euros in the same period last year. Shareholders are nevertheless to receive an unchanged dividend of 0.15 euros per share thanks to a significantly improved cash inflow.

Falling steel prices and a simultaneous rise in raw material and energy costs had a negative impact on earnings before interest and taxes (EBIT) adjusted for special effects, which fell from just under EUR 2.1 billion to EUR 703 million. Sales fell by nine percent to 37.5 billion euros. Thyssenkrupp intends to return to profit in the new financial year. The stock market assessed the company news positively. By early afternoon, Thyssenkrupp shares had risen to over seven euros. With a plus of over seven percent, the shares led the MDax.

López also discussed the recently launched "Apex" improvement program. This is primarily about profitable growth, for example through the use of artificial intelligence to better manage material stocks. In the forging business, artificial intelligence helps in the search for alternative suppliers. Measures have already been defined for a volume of 1.2 billion euros, said López./nas/DP/tih