Going Public: Thyssenkrupp's Marine Division Spin-off and CEO Lopez's Extension
Thyssenkrupp maintains strategic decision, retaining Lopez as CEO and focusing on Green Steel initiatives.
Thyssenkrupp has some major plans ahead. First off, the controversial CEO Miguel Lopez has extended his contract until 2031[1], despite facing criticism. Secondly, the marine division is preparing for a spin-off and listing on the Frankfurt Stock Exchange this year[2][4].
Miguel Lopez, who took over as CEO two years ago and initiated company restructuring initiatives, will now stay with Thyssenkrupp until the next decade[1]. However, Jürgen Kerner, the IG Metall vice-chairman and deputy chairman of the supervisory board, didn't vote for the contract extension[1].
Meanwhile, Thyssenkrupp plans to spin off 49% of TKMS (Thyssenkrupp Marine Systems), its marine division, and list it on the Frankfurt Stock Exchange[3]. The spin-off and listing are part of Thyssenkrupp's ambitious strategic realignment, intended to create more independent business segments and facilitate third-party investments[4].
The exact timeline for the spin-off and listing hasn't been disclosed yet, but the company is working towards completing it by the end of 2025[1]. The marine business will be consolidated under a new holding company, with TKMS shares being transferred to Thyssenkrupp AG shareholders in a proportionate way[3]. TKMS benefits from the global increase in demand for defense goods, with an order backlog of around €18 billion[1].
On the other hand, Thyssenkrupp and its competitors Salzgitter and the steel holding company SHS, are focusing on producing steel in a more climate-friendly manner[5]. Despite this, the project in Duisburg is near the economically viable limit[1].
Interestingly, ArcelorMittal has abandoned its plans for green steel production in Germany due to lack of economic viability[5]. Germany needs cheaper energy prices to make the steel industry competitive again[5].
Sources:
- [1] ntv.de
- [2] twitter.com/ThyssenKrupp_AG
- [3] facebook.com/ThyssenKrupp.AG
- [4] thyssenkrupp.com
- [5] jwu.de
- ThyssenKrupp
- Marine Division
- TKMS
- Spin-off
- Listing
- Strategic Realignment
- Steel Industry
- Germany
- Economy
- The spin-off and listing of the marine division, TKMS, will require strategic planning of finances to align with the company's strategic realignment, as Thyssenkrupp Marine Systems benefits from vocational training in the defense industry.
- As part of the strategic realignment, Thyssenkrupp's spin-off of the marine division could lead to increased business opportunities, necessitating careful monitoring of the community policy to promote a favorable environment for vocational training and sustainable growth in the steel industry.
