thyssenkrupp May Look to Sell Heavy Plate Business
In a statement, thyssenkrupp said the heavy plate business, along with its automotive springs and stabilizers unit and its automotive production line construction business, represents 4% of its overall sales but accounts for 25% of the negative cash flow it expects to report this fiscal year.
“We will assess the potential of the three businesses. We definitely see opportunities for their further development, but not necessarily under the umbrella of thyssenkrupp. We will not allow a situation to continue where businesses with no clear prospects permanently burn money and destroy value that other areas have created,” said thyssenkrupp chief executive Guido Kerkhoff.
The announcement comes as the company looks for a new path for its steel business following the collapse of a plan to combine its steelmaking arm with Tata Steel’s European strip business.
“After the prohibition of the joint venture by the European Commission, the new business area board is working hard on a sustainable strategy for the future. The aim is to address the structural problems in the European steel industry and at the same time mitigate the impacts of the current market dislocations, characterized by weaker demand and extremely high ore prices,” the company said.