Czech EPCG has completed the acquisition of 20% of Thyssenkrupp’s steel division

The German company Thyssenkrupp completed the sale of 20% of the steel division Thyssenkrupp Steel Europe to the Czech energy company EP Corporate Group (EPCG). This is stated in the Thyssenkrupp press release.

The sale has been pre-approved by Thyssenkrupp AG’s supervisory board and all relevant authorities. This marks another important step forward in the transformation process of Thyssenkrupp Steel Europe towards full commercial independence.

«EPCG’s successful sale of 20% of Thyssenkupp’s steel division is an important step towards business independence and sustainable, cost-effective and environmentally friendly steel production,» commented Miguel Lopez, CEO of Thyssenkrupp AG.

The parties are discussing EPCG’s purchase of a further 30% of Thyssenkrupp Steel to form a 50/50 joint venture.

The company is currently in the process of large-scale reorganization. In particular, the group is looking for a solution to its volatile steel division, which is suffering from low demand and high costs, mainly in energy, and excess global capacity is weighing on steel prices. Added to this are cheap imports from Asia. Thyssenkrupp also needs funds to reduce CO2 emissions in production and transition to green steel.

The group is planning a significant reduction in steel production capacity in Duisburg, which will be accompanied by job cuts. The details are still unclear, because the presentation of the plans was postponed several times.

As GMK Center reported, Thyssenkrupp Steel Europe plans to present the first proposals for the delayed construction of a green steel plant in Duisburg this month. The plans are intended to allow the company to switch to production using the direct recovery method to gradually replace the blast furnace at its facility.