The CEO has so far only commented on the criticism of her course internally.
(Photo: IMAGO/sepp spiegl)
Dusseldorf There was a loud bang at the supervisory board meeting at the Thyssen-Krupp industrial group. Representatives of the employees, but also from the capital side, had sharply criticized the board around the chairwoman Martina Merz at the meeting, participants reported to the Handelsblatt on Friday after the meeting. The reason for the displeasure is the planned spin-off of the steel division, for which Merz was unable to provide a coherent concept.
This is exactly what the supervisory boards had demanded in November last year – Merz should have delivered this Friday, as it was said in corporate circles. But instead of presenting concrete plans for the metallurgical division with its around 26,000 employees, the supervisors were presented with a bundle of possible investment scenarios. “That didn’t convince us,” said an inspector.
The participants were once again consoled with the fact that the uncertain market environment had to be seen – and the still unclear framework conditions for the green transformation were delaying decisions on a new strategy.
Since the merger of Krupp and Thyssen in 1999, the group has been looking for ways to withdraw from steel. However, an IPO, a merger or a sale failed. Merz resumed the considerations last year, but so far has not been able to find a good solution from the point of view of some supervisors and managers.
Against the background of the sluggish replacement of steel, the IG Metall trade union criticized the strategy of the CEOs overall: “The concept of the Group of Companies has failed for us!” It says in an information letter from IG Metall to the employees, which is available to the Handelsblatt.
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The company is not in a position to realize the future prospects for all of its businesses – the board of directors lacks an overall concept. With the Merz approach, the individual units operate under the Thyssen-Krupp umbrella.
Some supervisory board members and managers share IG Metall’s criticism, since they also believe that the company lacks a goal. This concern also feeds the resistance to replacing the steel business. There is simply no perspective, and the process remains opaque, according to corporate circles.
Talks with financial investor CVC have come to a standstill
According to participants, the board of directors held back on the names of possible bidders at the supervisory board meeting on Friday. Neither investors nor bidding companies were discussed. Some names are known in the market: Talks with the financial investor CVC have come to a standstill, according to financial circles.
Because a possible reason for the lack of plans is also: According to corporate circles, interest in the steel division is rather low. The Indian steel group Jindal, like the Latin American company Ternium, is not really interested. An offer from the Brazilian manufacturer CSN is conceivable. However, as those involved reported, CSN would relocate production and only leave the further processing of the steel in Duisburg – not a solution that could be agreed with the employees.
“As long as the way is not clearly shown, we will not issue a blank check,” says the supervisory board. “We are not closing ourselves off to any sensible solution as long as it is clear that jobs are secured and a value chain can be maintained in Germany.”
Talks about steel remain rather vague at the meeting. “There were no resolutions with a new direction, but that wasn’t the goal either,” said Supervisory Board Chairman Siegfried Russwurm, according to an internal employee information available to the Handelsblatt. In it, Merz announced more detailed plans: “We are working on being able to recommend one or the other specific directional decision in May.”
Wherever possible partners are discussed, however, it is not in your own hands. The board of directors of the steel division, Bernhard Osburg, will then present further plans in May, under the name “Steel Strategy 2030+”. The employees do not want to share Merz’s optimism. “Since last autumn, nothing has moved and time has been wasted again unnecessarily,” said the information letter from IG Metall. “This is unacceptable!”
More: Slump in the materials business – Thyssen-Krupp profit falls by a third.