The head of the division's supervisory board does not exclude the adjustment of production capacities
The steel business of the German conglomerate Thyssenkrupp is expected to prepare for a major reorganization, which could include a reduction in production capacity and jobs. This was stated by Sigmar Gabriel Chairman of the Supervisory Board of the steel division, Reuters reports .
Thyssenkrupp Steel Europe, Germany's largest steelmaker, plans to take on Czech energy company EPH as a co-owner, but the process has been delayed due to lengthy negotiations with customers in the automotive sector.
Last week, Thyssenkrupp union representatives warned the German conglomerate's management against cutting jobs or capacity as part of the expected sale of the steel division, which has been hit by high energy and raw material prices, weak demand and by cheap Asian imports.
We have factories designed for annual production of almost 12 million tons, but we currently only sell about nine million tons – and the trend could be even lower. This can be offset by a period of time without adjustments, but not in the long term,” Gabriel told the Westdeutsche Allgemeine Zeitung (WAZ).
The chairman of the supervisory board of the steel division told WAZ that the division's management plans to present a concept for the future by mid-April this year.
«How the current situation could affect future employment in the coming years is one of the questions that the Steel Executive Council will naturally have to address. It certainly cannot be excluded that capacity adjustments also result in job cuts», he explained.
As Compraço previously reported, Thyssenkrupp reduced sales and net profit forecasts for the 2023/2024 financial year, in particular due to the drop in sales in the steel and raw materials businesses. One of the reasons for the decrease in the planned profit indicator is losses from depreciation of fixed assets. In the first quarter (October-December 2023), the group reduced its steel business by another 200 million euros.
