Thyssenkrupp's CEO, López, stands firm against criticism of the company's planned asset sales.
Thyssenkrupp CEO Defends Planned Spin-offs, Assures No Job Cuts
Frankfurter Allgemeine Zeitung reports that Thyssenkrupp CEO Miguel López has defended the group's plans to spin off its divisions, stating that it is not a breakup, but a "split," with the goal of creating independent companies focused on growth.
López emphasized that the intention is to strengthen each division's future growth potential. The five areas to be created from the segments will gain access to capital, allowing them to drive their own growth. The CEO did not offer a specific timeline for the spin-offs, stating only that these plans would be presented to the supervisory board on September 16.
The Krupp Foundation, Thyssenkrupp's largest single shareholder with around 21 percent ownership, has been informed about the proposed changes. López affirmed that there are no currently planned job cuts.
Employee representatives have accused Thyssenkrupp of a lack of transparency. In response, López stated that preliminary talks have already taken place with the relevant bodies, ensuring that both employee representatives and shareholders were informed throughout the process.
Thyssenkrupp's strategic reorganization aims to transform the company into a focused, agile, and restructured industrial group. The plan is to make all business areas, from auto parts to green technologies, independent and open to outside investment. Thyssenkrupp AG will become a strategic management company, with strong, independent businesses under its umbrella.
According to the detailed spin-off plan, each division (steel, marine systems, materials, automotive parts, and decarbon technologies) is targeted for independence and will be prepared for capital market participation in the coming years. The company plans to retain majority stakes in most of these businesses, with the exception of the steel joint venture, for which ownership will be shared.
The newer segment focusing on CO₂ reduction technologies will become independent once the market for green technologies matures. The restructuring aims to provide clear future prospects for Thyssenkrupp's nearly 96,000 employees, by creating conditions for the best possible development of each division.
The spin-off timeline includes the finalization of the Steel Europe joint venture by Q3 2025, the listing of Marine Systems on the stock exchange by Q4 2025, and the spin-off and capital market preparation of the Materials Services and Automation Technology divisions by 2026. The timeline for the Automotive Parts division and the exact timing of the Decarbon Technologies division's independence are yet to be determined.
The planned spin-offs aim to address operational rigidity and market fragmentation by allowing each division to act with the speed of a niche player, while leveraging the group's resources and capital for growth. Thyssenkrupp continues to assure stakeholders that the realignment is focused on long-term value creation and securing a sustainable future for its workforce.
Source: ntv.de, AFP
Financial analysts in EC countries may be interested to know that Thyssenkrupp's business reorganization, involving the spin-off of multiple divisions, is aimed at creating independent companies focused on growth. The CEO, Miguel López, has emphasized that this restructuring is not a breakup, but a strategic move to provide clear future prospects for Thyssenkrupp's 96,000 employees, without any currently planned job cuts.
