DUISBURG/ESSEN (dpa-AFX) - Thyssenkrupp says it is holding "constructive and open-ended talks with the energy company EPH" on the planned spin-off of its steel division. A potential joint venture with Steel Europe, which could support EPH with its energy expertise, is being discussed, Thyssenkrupp reported in Essen on Wednesday. The concrete form of a possible joint venture is the subject of ongoing negotiations.

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.

Thyssenkrupp's steel division is to become climate-neutral. The first step is the construction of a so-called direct reduction plant for steel production in Duisburg, which is to replace a blast furnace. It will initially be operated with natural gas and later with more and more climate-neutral hydrogen. The success of CO2-neutral steel production is essentially dependent on the secure supply of large quantities of green energy at competitive prices, the company reported. "For this reason, thyssenkrupp is in discussions with potential strategic partners from the energy sector."

"If we get it right, we can significantly improve the competitiveness of Steel Europe and position the business for future green markets," explained Oliver Burkhard, Chief Human Resources Officer, according to the press release. Co-determination plays an important role in this transformation. "It is closely involved in the talks on independence in a proven manner," he emphasized. Following the announcement of the talks with the EPH Group at the beginning of October, the IG Metall trade union warned against a "rush job at the expense of the employees"./tob/DP/nas/ngu