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ThyssenKrupp Supervisory Board Approves Strategic Reorganization
03/30/2009 - At its extraordinary meeting, ThyssenKrupp AG’s Supervisory Board approves plans to realign the Group from its five existing segments into two divisions focused on Materials and Technologies.
ThyssenKrupp AG’s Supervisory Board approved plans to realign the Group during its extraordinary meeting held last Friday, March 27.
As a result of its decision, the Supervisory Board has instructed the Executive Board to implement its strategic reorganization, which is expected to produce savings of up to €500 million, by the beginning of the new fiscal year on October 1, 2009. With the reorganization, the company is targeting increased focus for the business and the creation of a leaner, more efficient structure (including in the administrative areas).
The reorganization centers on streamlining the Group’s five existing segments—Steel, Stainless, Technologies, Elevator and Services—into two divisions. The new Materials Division will combine the activities of the current Steel, Stainless and Services segments, while the new Technologies Division will comprise the business activities of current Technologies and Elevator segments.
“With the strategic reorganization in two divisions we are concentrating on areas in which we combine innovative strength and technological expertise,” commented ThyssenKrupp AG Executive Board Chairman Ekkehard Schulz. “At the same time we will speed up our decision-making processes and increase transparency.
“With the strategic reorganization in two divisions we are concentrating on areas in which we combine innovative strength and technological expertise,” commented ThyssenKrupp AG Executive Board Chairman Ekkehard Schulz. “At the same time we will speed up our decision-making processes and increase transparency.
“ThyssenKrupp will therefore be leaner, better and faster,” added Schulz. “With a more centralized structure, we will be able to respond more quickly to the market and implement strategic measures more directly in the future.”
The Group plans for its new Materials Division to focus and strengthen the expansion of its materials capabilities and materials services along the value chain. The Technologies Division is to focus and strengthen ThyssenKrupp’s technological capabilities in the area of global megatrends. In both new divisions, the initial focus will be on structural optimization of individual business units.
The reorganization is also to be followed by increased centralization of the organization.
In addition to personnel changes in the administrative areas, the strategic reorganization also will involve several previously announced changes in the ThyssenKrupp AG Executive Board. Specifically, Jürgen H. Fechter and Karl-Ulrich Köhler are to stand down from the Executive Board by mutual agreement at March 31, 2009, although they will continue to be available to the Group in an advisory capacity. In addition, the company said that no reappointment would be made for the position held by Wolfram Mörsdorf, whose term of office is due to end on April 14, 2009.
The Group plans for its new Materials Division to focus and strengthen the expansion of its materials capabilities and materials services along the value chain. The Technologies Division is to focus and strengthen ThyssenKrupp’s technological capabilities in the area of global megatrends. In both new divisions, the initial focus will be on structural optimization of individual business units.
The reorganization is also to be followed by increased centralization of the organization.
In addition to personnel changes in the administrative areas, the strategic reorganization also will involve several previously announced changes in the ThyssenKrupp AG Executive Board. Specifically, Jürgen H. Fechter and Karl-Ulrich Köhler are to stand down from the Executive Board by mutual agreement at March 31, 2009, although they will continue to be available to the Group in an advisory capacity. In addition, the company said that no reappointment would be made for the position held by Wolfram Mörsdorf, whose term of office is due to end on April 14, 2009.
Executive Board Vice Chairman Ulrich Middelmann is also to stand down from the ThyssenKrupp AG Executive Board at the close of the Annual General Meeting on January 21, 2010. From April 1, 2009 until his retirement, Middelmann is to concentrate on implementation of the new Group structure and on the corporate program ThyssenKrupp PLUS. He will also be in charge of Compliance.
In addition, Alan Hippe is to become ThyssenKrupp AG’s Chief Financial Officer from April 1, 2009. Edwin Eichler is to take charge of the Materials division, while Olaf Berlien will lead the Technologies division.
Against the background of the dramatic economic collapse in almost all countries and sectors, the Group is counting on responsibility and honesty in the discussion over possible job cuts. In view of a decline in annual crude steel output to the level of the early eighties, Schulz emphasized: “If we want to avoid compulsory redundancies in this situation, this underlines our social responsibility. But I cannot and will not guarantee that there will be no compulsory redundancies or site closures. That, too, is demanded by the honesty of a responsible businessman.”
Against the background of the dramatic economic collapse in almost all countries and sectors, the Group is counting on responsibility and honesty in the discussion over possible job cuts. In view of a decline in annual crude steel output to the level of the early eighties, Schulz emphasized: “If we want to avoid compulsory redundancies in this situation, this underlines our social responsibility. But I cannot and will not guarantee that there will be no compulsory redundancies or site closures. That, too, is demanded by the honesty of a responsible businessman.”
With sales of 53.4 billion euros and 199,374 employees in over 70 countries, ThyssenKrupp is one of the world's major technology groups and occupies strong positions on the international markets. The Group’s three main business areas of steel, capital goods and services, are currently organized in five segments - Steel, Stainless, Technologies, Elevator and Services.
