Thyssenkrupp continues strategic business reorganization

The conglomerate plans to transform into a holding company with controlling stakes in certain business units

German industrial giant ThyssenKrupp has announced plans to transform itself into a holding company with controlling stakes in certain business segments. This is stated in the message of the conglomerate.

The future strategic target model will be presented to the Supervisory Board by the end of the current fiscal year. It is noted that the basis of the plans is the gradual separation of all business segments and their opening for third-party investment. Thanks to the spin-off of the minority stake in Thyssenkrupp Marine Systems and the planned 50/50 joint venture between Thyssenkrupp Steel Europe and EPG, steps have already been taken in this direction.

The German group will spin off its Material Services and Automation Technology divisions, which will also be prepared for capital markets in the coming years. These business units will become independent as soon as the necessary preconditions are met. Later, the company plans to spin off the newly created Decarbon Technologies segment in line with the expected growth in the green technology markets.

“With the strategic transformation of thyssenkrupp, we are resolutely continuing on our chosen course. The future independence of our current segments – with the advantage of their own access to capital markets and the possibility of third-party investment – will increase their entrepreneurial flexibility, strengthen their investment plans and earnings responsibility, and improve transparency for investors,” said Miguel López, CEO of Thyssenkrupp AG.

He added that this step will allow the company to fully utilize the value creation potential of the companies and to target their independence for investment, market opportunities and further growth.

The conglomerate said that, except for the planned joint steel venture, Thyssenkrupp AG aims to maintain controlling stakes in all business areas.

Earlier, the steel division of Thyssenkrupp announced that it had reached an agreement in principle with the IG Metall trade union on the planned restructuring. Further negotiations are expected to result in a collective bargaining agreement by summer 2025. The basis for this is the industrial concept presented by the company’s management board at the end of 2024. The stated goal of both parties remains to avoid layoffs for operational reasons.