German steelmaker and industrial conglomerate ThyssenKrupp AG (TKA.XE) late Thursday said its executive board has decided on a set of comprehensive restructuring measures, aiming to strengthen its engineering business, seize growth opportunities in emerging markets and continue to reduce debt.

ThyssenKrupp said its management intends to increase focus on its automotive businesses, by selling some units that supply carmakers and merging others.

It also is considering spinning off its stainless steel unit, marking a shift from comments it made in November when it said it wants to keep running the business.

In an emailed statement the company said the strategic shift foresees the sale of assets with a total revenue volume of around 10 billion euros ($14.8 billion) and some 35,000 employees.

In fiscal 2010 which ended Sept. 30, ThyssenKrupp recorded revenue of EUR42.62 billion. At the end of its last fiscal year it employed around 177,000 people.

The proposed reorganization comes less than four months after Chief Executive Heinrich Hiesinger took charge of Germany's largest steelmaker by output.

Hiesinger is a former manager of engineering company Siemens AG (SI). Observers had expected that he would shift emphasis more toward ThyssenKrupp's non-steel business, which had been the company's main investment focus in the last few years with billions of euros spent on new steel mills Brazil and the U.S.

Apart from selling some automotive supply units ThyssenKrupp said it plans to bundle the chassis business of its Bilstein Group and Presta Steering.

"The consolidation will result in one of the largest global Chassis-Full-Service-Providers with sales of around EUR2.2 billion and nearly 6,500 employees," the company said.

It said it is open to investigate the possibility for strategic partnerships for the merged automotive supplier unit, but didn't further elaborate.

ThyssenKrupp also said its executive board plans to spin off its stainless steel business, seeking to create "an independent European market and quality leader within the stainless steel industry".

The company didn't say what form of spin-off of its Stainless Global division it is considering, but added that "all options regarding the continuation of its business activities outside the group are to be investigated".

Spinning off the stainless steel business would follow a similar move by ArcelorMittal (MT) earlier this year. The world's largest steelmaker by output spun off its stainless business named Aperam in January.

The global stainless steel industry is facing considerable headwinds with production overcapacities in the wake of the global recession and pressure on base prices as well as alloy surcharges.

ThyssenKrupp said a spinoff would give its stainless steel business "the opportunity to develop its competitive position with greater flexibility" and reduce costs. It said it would also consider "potential strategic partnerships" for the stainless business.

ThyssenKrupp's Stainless Global division recorded sales of EUR5.9 billion in fiscal 2010.

The proposed restructuring measures will be presented to the company's supervisory board at its next meeting on May 13, before they will be detailed to the public the same, ThyssenKrupp said.

-By Jan Hromadko, Dow Jones Newswires; +496929725503; jan.hromadko@dowjones.com
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Giu 2024 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal
Grafico Azioni Arcelor Mittal (NYSE:MT)
Storico
Da Lug 2023 a Lug 2024 Clicca qui per i Grafici di Arcelor Mittal