thyssenkrupp CEO Says, Its Germany Plant Searching For New Steel Partners – Market News Store

thyssenkrupp CEO Says, Its Germany Plant Searching For New Steel Partners

Guido Kerkhoff, Chief Executive, thyssenkrupp, recently disclosed that his firm will still look for partners for its steel operations after dumping a European unification with India’s Tata Steel. Kerkhoff canceled a restructuring program last week. In this program, the unification was said to be an important element. This restructuring would convert the steel-to-submarines group into a holding firm.

Recently, Kerkhoff consented on a way forward with the company employee unions for his latest strategy. According to the sources, this strategy forecasts about 6,000 job cuts. This number is approximately 4% of the thyssenkrupp workforce. Next week, the latest plan is supposed to go to a supervisory board for a vote. The firm dumped the long-scheduled unification of its steel business with the European operations of Tata Steel. This merger would have created the area’s No.2 producer following ArcelorMittal. But the firm had to cancel the same owing to resistance from European Union regulators.

On a related note, neither Tata nor thyssenkrupp were ready to make the concessions essential to get their planned unification passed by the European Commission. Both firms feared a negative impact on synergy. thyssenkrupp then revealed job cuts. Last week, thyssenkrupp revealed that it no longer anticipated the green light from the EU over a planned unification with Tata, its Indian competitor. A strategy to divide the company into two entities has presently been put on hold.

In a statement, the Essen-based firm proclaimed, both the firms expect that the planned partnership of their European steel activities won’t go ahead because of the Commission’s ongoing concerns. At the same time, the Commission itself refused to comment on this topic. Ricardo Cardoso, Spokesman, European Commission, stated that the investigation is in process. He added that the temporary deadline for the commission to take the decision on this issue is June 17, 2019.

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