The comments by Economy Minister Peter Altmaier came shortly after IG Metall, Germany’s most powerful union, called on the government to take a stake in the business, which has been badly hit by the fallout from the coronavirus crisis.
“I do not believe that nationalisation is the right response at the moment,” Altmaier said, adding such a step would not solve the sector’s problems.
Instead, steelmakers needed to develop future-proof business models, which the government would then be prepared to support financially.
Along with rivals, Thyssenkrupp Steel Europe, Europe's second-largest steelmaker after ArcelorMittal MT.LU, has been plagued by high raw material costs, weak demand from the car industry and cheap Chinese imports.
The division made a nine-month operating loss of about 700 million euros ($826 million).
A company spokesman said Thyssenkrupp was currently working on additional efforts to cut costs at the unit beyond previously announced plans to cut 3,000 jobs by 2026.
