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| ThyssenKrupp |
German Giant Weighs Strategic Options for €2 Billion Business Amid Market Volatility
ThyssenKrupp is exploring options to exit its materials trading business, ThyssenKrupp Materials Services GmbH, a division that could be valued at up to €2 billion. As part of its ongoing restructuring efforts, the company has reportedly engaged in preliminary talks with potential advisors to assess the future of this business unit. The process, however, is still in its early stages, and several potential outcomes are being considered.
Among the options under discussion are the spin-off of the unit into a separate entity or its outright sale. Sources familiar with the matter suggest that ThyssenKrupp has already attracted initial interest from prospective buyers. Despite this, some market experts speculate that the company may choose to retain the unit for a longer period due to ongoing market volatility.
A company spokesperson responded to inquiries by emphasizing ThyssenKrupp's focus on increasing independence within its steel and marine divisions. The company aims to optimize its portfolio and pursue growth through strategic partnerships. ThyssenKrupp’s CEO, Miguel Angel Lopez Borrego, has also expressed his intention to simplify the company’s structure by shedding non-core assets and focusing on engineering.
Restructuring Plans Include Job Cuts and Divisional Changes
ThyssenKrupp Materials Services is one of the world’s largest independent distributors of non-metallurgical materials, employing approximately 16,000 people and contributing about one-third of ThyssenKrupp’s total revenue. For the fiscal year 2024, the division’s EBITDA surpassed €200 million. The company is also preparing for the IPO of its submarine division, a key supplier of 70% of NATO’s non-nuclear submarine fleet.
In addition to restructuring efforts in its Materials Services division, ThyssenKrupp has already announced plans to cut about 1,800 jobs in its Automotive Technology division, aiming to save more than €150 million. The company has also revealed plans to cut 11,000 jobs in its steel division by 2030, with further reductions achieved through the outsourcing of operations or by selling off some parts of the business.
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