German union warns Thyssenkrupp against steel spin-off shortcuts
Reuters
Published Feb 27, 2024 13:43
Updated Feb 27, 2024 17:01
DUESSELDORF, Germany (Reuters) -IG Metall, Germany's largest union, warned Thyssenkrupp (ETR:TKAG) on Tuesday against taking shortcuts in its ongoing efforts to restructure and sell the group's steel division.
Knut Giesler, who heads the union in Thyssenkrupp's home state of North-Rhine Westphalia said it would be "unacceptable" for the steel unit to devise its own turnaround plan.
His comments come a day after the steel unit's chair said a turnaround plan would be presented in April and that neither production cuts nor layoffs could be ruled out.
"It is not acceptable to place the problem solely with the management board and co-determination of the steel division," Giesler said in a statement.
He said framework conditions needed to be created by Thyssenkrupp, alluding to efforts to make Czech investor Daniel Kretinsky to a 50% co-owner of the steel division, in a deal which sources said may require financial sacrifices.
German business daily Handelsblatt said that because of the bleak prospects Thyssenkrupp's steel unit was planning a new 400 million euro ($434 million) savings programme that comes on top of a group-wide 2 billion euro effort to bring down costs.
Thyssenkrupp declined to comment.
Giesler said the steel business needed an industrial concept that was sound structurally as well as financially, a challenge given its pension liabilities of around 3 billion euros.
"This constant back and forth must come to an end. Moreover, politicians must also be involved in finding solutions for these far-reaching changes and not just remain on the sidelines," he added.
($1 = 0.9215 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.