The troubled steel division, Thyssenkrupp Steel Europe (TKSE), has been grappling with a perfect storm of weak demand, aggressive competition from cheaper Asian imports, and mounting pressure to decarbonise, all of which have severely eroded its competitiveness.
The situation reached a critical point as TKSE announced the departure of its chairman, CEO, and five other key board members, signalling a profound rift over the direction of the steel business. Central to the conflict is a disagreement on the scale of job and capacity cuts required, and the financial resources needed before a potential partial sale to Czech billionaire Daniel Kretinsky can proceed. A recent business plan, endorsed by consulting giants Roland Berger and McKinsey, failed to satisfy Thyssenkrupp CEO Miguel Lopez, who has been tasked with finalising the sale after several failed attempts.
As the turmoil threatens the future of Germany’s largest steelmaker and its 27,000 employees, the head of the works council, Tekin Nasikkol, has called for government intervention to resolve the deadlock. Economy Minister Robert Habeck urged all parties to put their differences aside to stabilise the company, though a government spokesperson confirmed there are no current plans for the state to take a direct stake in Thyssenkrupp, despite union calls for such support in the past.
