Thyssenkrupp sells its electrical steel business in India

German steelmaker Thyssenkrupp Steel has announced that it has sold its Indian subsidiary, Thyssenkrupp Electrical Steel India. The deal is worth approximately €400 million and is expected to close within the next few months.

The buyer (Jsquare Electrical Steel Nashik) is a 50/50 joint venture between JSW Steel and Japan’s JFE Steel Corporation.

As noted in Thyssenkrupp, the sale of the Indian company is based on market and strategic considerations.

“The supply of raw materials from Thyssenkrupp’s German steel mills to India is expensive and weakens our competitiveness in this country in the long term,” explained Dennis Grimm, spokesman for the board of Thyssenkrupp Steel.

He added that it is not economically feasible for the company to set up its own production of local raw materials.

The proceeds from the sale, the German company noted, will strengthen the capital base of the steel segment and, among other things, will be used for environmental transformation. This also includes the activities of Thyssenkrupp Electrical Steel.

“As demand for grain electrical steel remains high due to the global energy transition, the company will increasingly focus on the growth markets of Europe and North America in the future,” Thyssenkrupp said in a statement.

As GMK Center reported earlier, in August 2024, Thyssenkrupp completed the sale of 20% of the steel division Thyssenkrupp Steel Europe to the Czech energy company EP Corporate Group (EPCG). The parties discussed EPCG’s purchase of another 30% of Thyssenkrupp Steel to form a 50/50 joint venture.