thyssenkrupp Steel Plans Up to 11,000 Job Cuts and Facility Closures
Duisburg - In response to market pressures and the need for increased efficiency, thyssenkrupp Steel Europe AG has announced a comprehensive future strategy that includes significant job losses and the closure of a processing plant. The Management Board summarized the measures to be taken to adapt to the changing European steel market by presenting the outlines of this industrial concept to the Supervisory Board's Strategy Committee.
The plan involves reducing production capacities from 11.5 million metric tons to a target range of 8.7 to 9.0 million metric tons. This adjustment is seen as a necessary response to align with the shipment levels of the previous fiscal year and to counter the excessive capacity and increasing imports from Asia. As part of the strategy, the Kreuztal-Eichen processing plant will be closed, and the company aims to either sell its shares in Hüttenwerke Krupp Mannesmann (HKM) or explore closure options if selling is not feasible.
thyssenkrupp Steel is also committed to the green transition, continuing construction of a direct reduction plant and planning to replace two blast furnaces in Duisburg with new facilities and innovative smelters by 2030. The possibility of replacing another blast furnace with an electric arc furnace will be assessed at a later date.
The reorganization is expected to lead to approximately 5,000 job losses by 2030 through production and management adjustments. Additionally, 6,000 jobs may be lost due to transfers to external service providers or through the sale of business units. The company also plans to reduce personnel costs by an average of ten percent over the coming years to achieve a competitive cost level. CEO Dennis Grimm emphasized the importance of adapting to market conditions and reducing costs to create long-term perspectives for employees and maintain competitiveness.
In parallel with these changes, thyssenkrupp AG is working towards making its Steel business independent by selling 20% of its shares to Czech EP Group. The fundamental issues paper is a key step for a viable business plan and the IDW S6 restructuring expert report, ensuring that thyssenkrupp Steel remains profitable, competitive, and carbon-neutral in the long term.
According to Chief Transformation Officer Marie Jaroni, this strategic restructuring is crucial for the company's operational efficiency and long-term viability, especially as the company aims to transition from a coal-based business model to a greener model. The information provided is based on thyssenkrupp Steel's press release.
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