Salzgitter CEO rejects idea of steel alliance with Thyssenkrupp

“We currently do not see any scenario that would improve our situation compared with independence,” Fuhrmann said in an interview on Monday.

“We would first have to dismantle ourselves, or allow ourselves to be dismantled. No sensible person in the company would go along with that here.”

Thyssenkrupp said last month its steel unit faced operating losses of 1 billion euros (910.63 million pounds) this year, raising pressure on it to fix or sell the division, with Salzgitter seen as one of several potential future partners.

The expected loss at Thyssenkrupp Steel Europe, the continent’s No.2 player after ArcelorMittal (MT.AS), comes as the sector suffers from cheap Chinese imports, high raw material prices and weak automotive demand.

Fuhrmann said those who supported the idea of the creation of a German steel champio did not understand the industry, noting that the real champios of the sector were active worldwide and five times as big as the proposed German merger.

He said calls for a merger took a short-term view, adding that Salzgitter was not under pressure despite the coronavirus crisis, noting that the group has almost tripled its sales since becoming independent in 1998 and doubled its workforce.