Thyssenkrupp seeks a partnership with the Czech billionaire’s EPH group

German group Thyssenkrupp is in intensive talks with Czech group Energeticky a Prumyslovy Holding (EPH) about a possible energy alliance, in addition to EPH’s interest in becoming a co-owner of the company’s steel division. This was reported by Kallanish.

For several months, Czech billionaire Daniel Kretinsky, who owns EPH, has reportedly been considered a candidate for a 50% stake in the proposed spin-off of Thyssenkrupp’s steel division. Although the German group has so far refrained from commenting on the process, the company has acknowledged that negotiations are underway.

At the annual press conference, Thyssenkrupp CEO Miguel Lopez emphasized the importance of the partnership with the energy company for the group’s steel business. According to him, the company sees great potential in partnering with players in the energy sector to the benefit of both parties. Lopez added that in the future, energy will account for half of the cost of steel, so an energy partnership is absolutely necessary.

The Thyssenkrupp CEO also noted that the company will need large amounts of green energy for climate-neutral production at its steel plants. This will require long-term relationships with suppliers and secure planning.

«That is why we are conducting constructive and non-binding negotiations with the energy company EPH,» said Lopez.

Ultimately, the negotiations will be aimed at establishing a joint venture with Tk Steel.

EPH Group owns the Mibrag and Leag lignite plants in Germany, which are seeking to generate more climate-neutral electricity from renewable sources in the future.

As GMK Center reported earlier, Thyssenkrupp announced on a €2.1 billion ($2.3 billion) impairment loss on its steel division due to “gloomy” earnings expectations. In the 2022/23 financial year, the company recorded a net loss of €2 billion.