Thyssenkrupp's Marine Division Goes Public: Thyssenkrupp Stands Firm on CEO Lopez and "Green Steel"
Thyssenkrupp maintains grip on Lopez and Green Steel operation.
Hold on tight, folks! Thyssenkrupp's game plan for the next decade is as rigorous as it gets! On one side, CEO Miguel Lopez will remain with the industrial powerhouse until May 2031, thanks to the board extending his contract. On the other, the marine subsidiary spin-off is full steam ahead!
Lopez, who took the reins at Ruhr two years back, has been busy restructuring the corporation. Yet, he's faced harsh criticism from employee reps. The unions and works councils accused him of a lack of transparency, a charge he passionately refuted. Even vice-chairperson of the IG Metall and deputy chairman of the supervisory board, Jürgen Kerner, admitted he didn't support the contract extension.
But hold your horses, because the marriage of bold moves ain't over yet! The supervisory board is also driving the marine division's spin-off. Shareholders will convene at an extraordinary general meeting on August 8 to agree upon the spin-off of a 49% minority stake. By the end of this year, TKMS is scheduled for a Frankfurt Stock Exchange listing.
The plans call for bundling the marine business under a new holding company. Shareholders of Thyssenkrupp AG would directly own 49% of TKMS shares, thus becoming its shareholders. The submarine builder is thriving amidst the global demand surge for defense goods. With an order backlog of around €18 billion, production is in full swing and set to carry us well into the next decade.
However, Thyssenkrupp's steel business, like its competitors Salzgitter and the steel holding company SHS, is staying committed to the "green steel" project. But the project in Duisburg is fair and square at the limit of economic viability, according to a spokesman.
Meanwhile, ArcelorMittal has aborted plans for coal-free steel production at its Bremen and Eisenhüttenstadt plants due to the unforeseen expense. The German steel sector desperately needs cheaper energy prices and negotiations with competitors like China to combat "dumping of cheap steel" must be initiated. The path to "green steel" is lengthy and costly, suggesting that Germany must test hydrogen laws before plunging in.
So buckle up as Thyssenkrupp takes the futuristic plunge into sustainable steel production!
- ThyssenKrupp
- Steel Industry
- MDax Company
- Stock Market
Sources:
- ntv.de
- jwu/rts/dpa
Enrichment Dat- Thyssenkrupp's marine division, Thyssenkrupp Marine Systems (TKMS), is currently undergoing a spin-off process. The company plans to spin off a minority stake of 49% in TKMS to the shareholders of Thyssenkrupp AG, with the spin-off expected to be completed by the end of 2025. An initial public offering (IPO) for TKMS is planned within this year, aiming to list the company on the stock exchange. This move is part of a broader strategic realignment by Thyssenkrupp to separate its business segments, enhance flexibility and transparency, and open them to third-party investment while retaining controlling interests in most cases.- Regarding Thyssenkrupp's steel business and its plans for "green steel," the company has initiated a 50/50 joint venture between Thyssenkrupp Steel Europe and EPG as a key step towards decarbonization. Additionally, Thyssenkrupp has established a new Decarbon Technologies segment aimed at green technologies, which is also planned to become independent in the future in line with market growth in sustainable technologies. These efforts reflect Thyssenkrupp’s commitment to producing 'green steel' and pushing ahead with decarbonization in its steel operations as part of its strategic realignment towards sustainability and value creation.
In the pursuit of strategic realignment, ThyssenKrupp plans to spin off a 49% minority stake of its marine division, ThyssenKrupp Marine Systems (TKMS), and list it on the stock exchange, aiming to enhance flexibility and transparency. Simultaneously, ThyssenKrupp remains committed to the "green steel" project, initiating a joint venture with EPG for decarbonization and establishing a Decarbon Technologies segment for green technologies. This demonstrates ThyssenKrupp's dedication to both vocational training in its various business segments and sustainable finance through the promotion of green steel production.
