thyssenkrupp to cut jobs, push electrical steel

Following negotiations and an agreement with union IG Metall, thyssenkrupp AG has announced the future plan for its Steel Europe division it is calling ‘Steel Strategy 20-30’, Kallanish learns.

The measures include a reduction of up to 2,000 jobs in the next 3 years, and roughly another 1,000 jobs up to 2026. Of the total, 800 jobs are affected in the troubled heavy plate segment. In that area, thyssenkrupp sees no development prospects within the group. “The job reductions have been firmly agreed and will be carried out in a socially responsible manner,” the company notes.

It says it will systematically align the product portfolio with future markets and profitable steel grades. These include multiphase steels and lightweight steels as well as grades with high surface quality. In addition, the production of non-grain-oriented electrical steels, which are becoming essential for electromobility, will be strengthened.

“We have put off problems for too long and shied away from tough decisions. The agreements give us room for manoeuvre so that steel can remain competitive in the long term,” says Klaus Keysberg, tk AG executive in charge of steel/materials. “What you have to keep in mind: We are investing in one of the best steel locations worldwide. The expertise of our team is highly valued by customers,” he says. Keysberg notes however that “… today, we are too complex and have an inappropriate cost structure.”