Thyssenkrupp estimates restructuring costs at several hundred million euros

The amount will depend on the number of employees who accept a particular offer

Marie Jarony, head of Thyssenkrupp’s steel division, estimates that the restructuring agreement, which involves cutting or outsourcing around 11,000 jobs, will cost the company hundreds of millions of euros.

She said this in an interview with Frankfurter Allgemeine Zeitung, Reuters reports.

“The exact amount depends on how many employees accept one offer or another,” Jarony said.

At the same time, she said, these steps will be offset by long-term reductions in personnel costs.

Earlier this week, Thyssenkrupp Steel Europe announced that it had reached an agreement with the IG Metall trade union to reduce or outsource 40% of its workforce and reduce production capacity to 8.7-9 million tons, compared to 11.5 million tons currently.

In September this year, the German industrial group received a non-binding offer from India’s Jindal Steel International to buy its steelmaking division. The latter is currently conducting a large-scale review to assess the feasibility of submitting a formal bid.

It should be recalled that at the end of October, Thyssenkrupp Steel temporarily shut down blast furnace No. 9 (BF9) at its site in Duisburg-Bruckhausen. The company explained this decision by weak demand for steel in Europe and growing pressure from imported products, which negatively affects the competitiveness of local production.