THYSSENKRUPP has announced that it will separate its industrials and materials divisions into two separate companies.
It will be the company’s biggest restructure since Thyssen and Krupp merged in 1999. The split comes after years of pressure from activist investors who demanded changes to improve the operational performance of the group, saying that it had an overly complex conglomerate structure.
The industrials goods business will separate from the steel and marine departments, splitting into ThyssenKrupp Industrials and ThyssenKrupp Materials. The Industrial group will consist of plant construction, the elevator business, and automotive supplies. The Materials group will focus on steel production and processing, consisting of the marine business, slewing bearings and forging units, and 50% of the joint venture with Tata Steel.
A spokesperson for Thyssenkrupp told The Chemical Engineer that the separation will not affect the planned merger between Tata Steel and Thyssenkrupp. The European Commission is currently assessing how the merger will affect competition in the European market, and is due to make a decision by 30 October on whether to allow the joint venture to go ahead.
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