2024-04-27 00:58:45
Germany’s largest steel producer Thyssenkrupp Steel is getting an energy partner to advance the green transformation of the steel industry. The workforce criticizes the process.
Germany’s largest steel manufacturer Thyssenkrupp Steel is getting an energy company as co-owner. The Czech billionaire Daniel Křetínský and his holding EPCG are initially taking over 20 percent of the steel division of the industrial group Thyssenkrupp. Negotiations are underway to take over a further 30 percent of the steel business. The aim remains to form a joint venture in which both partners each hold 50 percent, Thyssenkrupp announced on Friday in Essen. Employee representatives expressed criticism and demanded compliance with collective agreements.
Thyssenkrupp boss López: EPCG is a “strong energy partner”
“Together we want to create a high-performance, profitable and future-oriented steel company,” said Thyssenkrupp CEO Miguel López. The company will reduce the costs of decarbonization to a more competitive level, thereby accelerating the green transformation of the steel industry towards carbon neutrality. “A strong energy partner like the EP Corporate Group is essential for this.” Křetínský emphasized: “EPCG (…) is financially strong, growing and is a reliable provider of energy and services for our customers.” Together we will make an important contribution to the decarbonization of the steel industry.
Thyssenkrupp pointed to the sharp increase in energy requirements when switching to more climate-friendly manufacturing processes. According to the announcement, EPCG will contribute its expertise as a strategic partner to ensure a sufficient supply of energy in the form of hydrogen, green electricity and the provision of other energy raw materials. The company, which is active in nine European markets, brings extensive industry knowledge as an energy trader, supplier and supplier. Thyssenkrupp made its negotiations with Křetínský about his entry into the steel business public at the end of November.
The takeover is expected to take place this year
The share is expected to be acquired in the current 2023/24 financial year, which ends on September 30th. Authorities and Thyssenkrupp’s supervisory board still have to agree. The company emphasized that the transaction has no impact on the existing company agreements and collective agreements.
Neither side said anything at what price the share would be sold. An expert at Baader Bank estimates that Thyssenkrupp could receive 350 million to 400 million euros.
In the last financial year, Thyssenkrupp had to write off billions on its steel business, which suffered from weak demand and lower prices, coupled with higher costs. Thyssenkrupp recently announced the reduction of capacity at the Duisburg site, which will also lead to further job cuts.
Around 27,000 people work in the Thyssenkrupp Group division, 13,000 of them in Duisburg. Almost all locations are in North Rhine-Westphalia.
Employee representative: “Not a good style and not a good start”
Employee representatives from Thyssenkrupp were critical of the planned entry. The news comes as a surprise, said the deputy chairman of the supervisory board of the parent company Thyssenkrupp, Jürgen Kerner, according to a statement. “Co-determination only found out about the decision a few hours before the public. That’s not good style and not a good start.” Kerner is also deputy chairman of IG Metall.
The employee side has never spoken out against an investor in principle. “But we expect participation of co-determination on an equal footing and binding commitments,” demanded Kerner. What is now needed is a viable future concept for the further conversion towards green steel.