Thyssenkrupp is split up
Supervisory Board has decided
The supervisory board of Thyssenkrupp has agreed to a split of the group on Sunday. The company will be split into two independent companies. In the future, the technological areas, which include elevators, car parts and plant engineering, will belong to Thyssenkrupp Industrials AG. Under the umbrella of Thyssenkrupp Materials AG, the materials-driven businesses such as steel mills, steel trading and shipbuilding are united.
The headquarters of both companies will remain in Essen. Both companies shall also be listed on the stock exchange. The plans for the split were made by the interim manager Guido Kerkhoff. He was also appointed as the new Chairman of the Management Board at the meeting. Kerkhoff receives a five-year contract.
Through the splitting of the company, the group hopes to be able to improve the weak figures of the last quarter. Thyssenkrupp Materials consists of materials trading and the 50-percent share through the merger with the Indian partner Tata as well as the large-diameter slewing bearings, the forging business and the marine business. The aim is to create a materials group combining steel and stainless steel production, materials trading and steel-related processing.
No job cuts planned
Thyssenkrupp Industrials becomes a pure industrial goods company. These include the automotive supply, elevator and core plant engineering businesses. A new addition is system engineering, which builds production lines for cars, for example. This was previously part of Industrial Solutions. The automotive competencies are thus bundled in one area.
Kerkhoff describes the split-up as a “responsible solution that satisfies the interests of employees, customers and shareholders alike”. Both companies should continue to live the values and cultures of Thyssenkrupp AG. The Supervisory Board had agreed this with the employees in a basic agreement.
Due to the splitting, no jobs shall be lost. However, cuts in administration are already known. Thyssenkrupp Industrials AG would have around 90,000 employees and sales of 16 billion euros; Materials would combine just under 40,000 employees and sales of 18 billion euros (sales figures based on pro forma figures for fiscal year 2016/17).