ThyssenKrupp considers sale or spin-off of Materials Services

German industrial giant ThyssenKrupp AG is considering options to exit its materials trading business, Thyssenkrupp Materials Services GmbH, which could be valued at up to €2 billion. According to Bloomberg, citing knowledgeable sources, the company has already held preliminary talks with potential advisors on the future of the unit.

Several scenarios are being considered, including the spin-off of the business into a separate entity or its sale, as the company has already received initial interest from potential buyers. At the same time, according to the sources, the process is at an early stage, and ThyssenKrupp may keep the unit in its structure for longer, given the market volatility.

In response to Bloomberg’s request, a company spokesperson said that ThyssenKrupp is focused on giving more independence to its steel and marine divisions, seeking growth through strategic partnerships and portfolio optimization.

CEO Miguel Angel Lopez Borrego has previously announced his intention to simplify the group’s structure by separating non-core assets and focusing on engineering. ThyssenKrupp has been facing internal problems and rising energy prices in recent years.

Thyssenkrupp Materials Services is one of the world’s largest independent distributors of non-metallurgical materials. The division employs about 16,000 people and accounts for about a third of ThyssenKrupp’s total revenue, which reached €12 billion last year. EBITDA amounted to more than €200 million.

Amid restructuring efforts, the group is also preparing for an IPO of its submarine division, a key supplier of 70% of NATO’s non-nuclear submarine fleet.

Thyssenkrupp plans to cut about 1.8 thousand jobs in its Automotive Technology division. The company’s measures are aimed at reducing costs by more than €150 million. These steps also include adjusting investments, reducing working capital and temporarily freezing hiring, especially for positions above a certain salary level.

In November 2024, the company also announced that it would cut 11,000 jobs in its steel division. The planned adjustment of the production network and optimization of administration will lead to the loss of about 5,000 jobs by 2030. Another 6,000 will be cut by outsourcing some operations to external service providers or by selling the business.